How much will energy cost in 2023 in Denmark compared to 2022?

A prognosis says that families in Denmark will generally feel less strain on their finances due to energy bills this year compared to 2022.

How much will energy cost in 2023 in Denmark compared to 2022?
The cost of energy will be slightly less draining on Danish private finances this year, with further relief to come in 2024 according to a Danske Bank prognosis. Photo: Kristian Djurhuus/Ritzau Scanpix

Heating and electricity bills for a “normal” Danish family will be a little lower in 2023 than in 2022, according to a new prognosis from Danske Bank.

According to the economic prognosis, the average cost of heating will fall by 100 kroner to 2,400 kroner per month.

Electricity bills will drop from an average of 1,560 kroner per month to 1,330 kroner, a monthly saving of 230 kroner.

The predicted lower prices are due to lower gas prices which are expected in 2023.

READ ALSO: Low European gas prices ‘will benefit’ energy consumers in Denmark

But the first real breathing space in everyday finances for households in Denmark will not be felt until 2024, according to an analyst.

“Although we expect the worsening of families’ finances to slow down during the year, it probably won’t be until next year that we will see a decidedly improved situation in our private economies,” senior economist with Danske Bank Louise Aggerstrøm Hansen wrote in the prognosis.

The bank’s calculations are based on a family consisting of two adults and two children who live in a detached house. Both adults are in full time employment and earned a gross total of 81,154 kroner per month in 2020.

Forecasts for 2024 are significantly more optimistic, with price increases expected to have flattened out by next year.

Heating bills for the hypothetical family in 2024 will be 1,600 per month and electricity will cost 1,080 per month on average, according to the Danske Bank prognosis.

The bank also noted that the disposable income for families is predicted to fall by 0.1 percent this year but fell by far more – 7.4 percent – in 2022.

The negative figure is forecast to be turned around to a positive 8.1 percent increase in 2024.

“That is approximately equivalent to 2022 and 2023 combined but also underlines that there is an outlook towards an overall zero growth over three years to the effective disposable income. That’s a very weak trend historically,” Hansen wrote.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


’Record number’ of foreigners move to Denmark for work

A record number of people moved to Denmark from abroad for work reasons in 2022, according to national agency Statistics Denmark.

’Record number’ of foreigners move to Denmark for work

A total of 31,600 people moved to Denmark to work last yer, according to a Statistics Denmark review released on Tuesday.

The figure corresponds to a 24 percent increase compared to 2021 and is the highest in the history of the statistic, which goes back to 1997.

The average number of work immigrants in the decade prior to 2022 was 21,000 people.

Specifically, the number describes the amount of people who were given work permits in Denmark in a given year.

The fact that the statistic has reached a historical high is remarkable, according to an economist.

“In a time with a major labour shortage, Danish businesses have succeeded in recruiting labour from abroad. That is a big success story, which certainly ensures growth and stability in the Danish economy in the period after the coronavirus pandemic,” senior economist Tore Stramer of the Danish Chamber of Commerce told news wire Ritzau.

“The large inflow of foreign labour has held of a threatening overheating of the labour market and ensured stable high growth in the economy,” he said.

READ ALSO: Danish parliament set to vote through relaxed work permit rules

Broken down by nationality, the largest proportion of people moving to Denmark to work came from EU countries in Eastern Europe.

Some 6,000 Romanian nationals were granted Danish work permits in 2022, with 3,700 coming from Poland.

Employment levels in Denmark continue to set records, confounding an uncertain economic outlook and high inflation.

READ ALSO: Danish economy defies headwinds to grow by 3.6 percent

Foreign labour is a driving factor for high employment levels, Stramer said.

“The large inflow of foreign labour has been the absolute primary factor behind the strong rise in employment in recent years,” he said.

“Specifically, foreign labour has driven around 40 percent of the overall increase in employment over the last three years,” he said.