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ENERGY

Energy prices in Denmark rise as winter weather sets in

Electricity rates for consumers in Denmark were close to 5 kroner per kilowatt-hour on Tuesday as prices begin to rise again following a drop in the late autumn.

Energy prices in Denmark rise as winter weather sets in
Freezing temperatures in Denmark in January this year. Cold weather could help push energy costs up. Photo: Ólafur Steinar Gestsson/Ritzau Scanpix

The price of electricity has jumped back to about 5 kroner per kilowatt-hour during periods of high demand starting Tuesday, broadcaster DR reported based on a price calculator from national energy company Andel Energi.

Increased prices compared with recent weeks are expected to continue.

Recent wintery weather has driven people Denmark to turn their radiator dials just as the wind has died down, leaving wind farms idle, Andel Energi functional manager Jack Michael Kristensen said.

“That means we have to find energy for our homes elsewhere. That includes from places like German gas power plants,” he said.

The duration of higher prices is difficult to predict, he added.

“The main thing is that there is more wind. And maybe also more water for hydro power plants so we can get some more sustainable energy for lower prices,” he said.

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The situation is exacerbated because Norwegian and Swedish hydropower facilities are currently underperforming, a Saxobank analyst told DR. 

“Low water levels in Norway and Sweden means their production has not been at the level we saw earlier,” raw materials strategist Ole Sloth Hansen told the broadcaster.

Hansen said that the combination of low production due to weather conditions and high demand because of the winter cold are likely to combine to keep prices high.

Aalborg University professor of energy planning Brian Vad Mathiesen said that although the conditions were not optimal, he expected Danish consumers to be able to continue with energy saving measures that can help limit bills.

“It is certain that when the price gets up to five, six or seven kroner, savings can mean a lot for people’s wallets,” he said.

Danish Met office DMI forecasts temperatures to drop to between 2 and 5 degrees Celsius in coming days, with localised sub-zero conditions.

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ENERGY

How to apply for Denmark’s 6,000 kroner energy relief if you were missed by automatic payments

Denmark last year sent an automatic 6,000-kroner payout to eligible households in a measure intended to relieve people struggling with high energy costs. People who think they may qualify for the money, but didn’t receive it, can soon apply.

How to apply for Denmark’s 6,000 kroner energy relief if you were missed by automatic payments

The tax-free cash payout of 6,000 kroner was approved by parliament last spring in response to rising energy prices and sent out in August to households which met the set criteria.

The payments were made automatically, so no application was needed at the time.

Households with a collective pre-tax income of under 706,000 kroner were eligible for the one-off cash boosts. Additionally, the household should be primarily heated by individual gas heaters (or have experienced similar increases to bills as such homes) or be located in a district heating area in which the heating is produced by at least 65 percent gas.

But errors in registration data could result in households which meet the criteria not receiving payments automatically, the Danish Energy Agency said at the time.

People who believe that their household meets the criteria, but have not received the money, can therefore apply for it from early 2023.

A significant number of people also received the money even though they did not fulfil the criteria, for example because they had replaced their gas boilers but the registration data on their homes was outdated.

READ ALSO: Up to 70 Danes offer to pay energy money back to government

An additional application round for the heating cheques opens on March 14th, according to a notice from Energy Minister Lars Aagaard to parliament’s energy committee.

“The vast majority of households which are entitled to the heating cheque have received the payment. Some households, which are entitled according to the law have meanwhile seen circumstances which mean they unfortunately didn’t receive the cheque automatically,” he wrote.

Specifically, the Danish Energy Agency (Energistyrelsen) will open a digital application platform via the website varmecheck.dk.

If your household did not receive the payout last year, you can apply for it if the household’s overall income in 2020 was less than 650,000 kroner (after the AM-bidrag tax contribution is deducted).

Application must be made within an eight-week window. You can enter your email address on the varmecheck website to receive a reminder when the application round opens.

“Reasons that households have not received the cheque automatically could for example be that there was data missing or not sufficiently ready for an automatic payment to happen, [or] that the oldest person in the household didn’t have a Nemkonto [designated bank account, ed.] for the money to be paid into,” Aagaard wrote in the parliamentary note.

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