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ENERGY

Danish consumers urged to keep conserving energy to avoid high costs

Although the price of electricity has recently fallen back from recent recent sky-high levels, it’s important that Danish consumers don’t return their usage habits to normal, energy experts say.

Danish consumers urged to keep conserving energy to avoid high costs
Danish energy experts say high bills and shortages could still occur this winter. Photo by Aurélien Lemasson-Théobald on Unsplash

Energy prices in Denmark are currently lower than they were in the late summer and early autumn, but experts say that turning heating up to full blast – and generally scrapping measures to reduce consumption – will still result in costly bills.

While prices were high, many people in Denmark adapted their consumption habits in an effort to preserve stores and avoid high costs.

Public buildings and many businesses meanwhile implemented lower temperatures on thermostats, and power-hungry activities such as outdoor ice rinks or Christmas lighting were cancelled or cut back.

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With the weather now colder, energy prices are currently low.

That is partly because Denmark’s gas reserves that serve as an emergency backup are full, while issues at European power plants that exacerbated the crisis have been largely resolved. 

The cold weather and lower prices may tempt many to return to former habits and turn heating up as usual. But this could still see energy bills eventually hit record levels, experts have warned.

“We will have to think about what we use our electricity and gas for and make savings where we can,” Jim Vilsson, senior economist at state-owned energy company Energinet told broadcaster TV2.

“Otherwise, we could end up in a situation where we again risk being short of energy,” he said.

Data from Nordic energy stock market Nord Pool, reported by TV2, show the unit price of electricity hitting 4.36 kroner per kilowatt hour (not including fees and taxes) in late August.

The price was 0.9 kroner per kilowatt hour as of November 20th.

Gas prices similarly peaked in late August and before falling, but are higher than they were in November 2021.

READ ALSO: At what time of the day is electricity cheapest in Denmark?

“Supply wise we are well stocked at the moment. We have got the European gas strores filled well up and they are actually completely full in Denmark,” Vilsson told TV2.

Gas stocks remained full further into the late autumn than usual, according to raw material analyst Ole Sloth Hansen of Saxo Bank.

“We have only just seen gas stocks be reduced and this was three weeks later than normal. So we have lots of gas, but we’re not home and dry yet,” Hansen told TV2.

Consumers in Denmark have meanwhile reduced their consumption by an average of around 10 percent.

“The market is a little better than it was before. But I’m putting extra emphasis on ‘little’, because it’s based on a situation where we expect a relatively normal or mild winter,” Vilsson said.

Increased consumption could help to push current lower prices back up as well as deplete stocks, he warned.

“We have been able to keep prices down because we have stood together and been good at saving. If we go back to normal, we could be in a situation again where we will lack gas, coal or electricity,” he said.

READ ALSO: How do I check my Danish electricity plan and decide whether to change?

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ENERGY

Danish Energy Agency advises homes with gas heating to conserve

The Danish Energy Agency (Energistyrelsen) has issued guidelines to households heated by individual gas heaters in a bid to help them avoid very high bills.

Danish Energy Agency advises homes with gas heating to conserve

Around 240,000 households in Denmark will receive advice from the agency by physical or digital post, the agency said in a statement on Friday.

Gas prices in Denmark are currently rising as temperatures drop and energy production from wind turbines falls due to weather conditions.

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“The Danish Energy Agency views it as an important task to help people like those with individual gas heaters [Danish: gasfyr] through good advice about how they best can reduce their heating consumption and take the worst off their gas bill,” head of office Vincent Rudnicki said in the statement.

The information letters are part of a national energy saving campaign which seeks to cut energy consumption during a period when prices can go through large variations.

When gas prices reached their 2022 peak in August, one megawatt hour of gas cost over 300 euros according to the Dutch exchange TTF.

At the beginning of December, the price has increased to 131 euros per megawatt hour after going through a period with lower prices during the autumn.

Although the price remains low compared to August, it is higher than it was two years ago, according to comments previously given to news wire Ritzau by Sydbank’s senior economist Søren Kristensen.

Kristensen said that the cost of heating a housing in Denmark is now 10,000 kroner per year higher on average than it was in the years prior to the energy crisis.

He also said that the winter is likely to push prices up from their current level.

“That will unfortunately mean that it will in no way be a cheap winter in relation to heating up the house or using electricity,” he said.

The Danish Energy Agency information letter will be sent to persons who own single-family houses which are heated by natural gas heaters, according to information stored on the national register BBR (Bygnings- og Boligregistret).

“At this time we have particular focus on those who live in villas or semi-detached houses because they have seen the largest of all the gas bill increases,” Rudnicki said.

In some cases, persons who no longer have gas heating will receive the letter if the BBR registry has not been updated, he noted.

Advice included in the information packs includes reducing temperature, using less hot water and having gas boilers services.

The saving tips may also be relevant for people who live in other types of housing, such as apartments, rental houses or terraced houses, according to the Energy Agency.

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