Danish regulator says  electricity companies earn ‘excessive’ profits

A Danish regulator has said that companies that control the Danish electric grid are charging excessive prices, according to a media report.

Danish regulator says  electricity companies earn ‘excessive’ profits
A watchdog for the energy sector says grid operators could reduce costs for customers. File photo: Bo Amstrup/Ritzau Scanpix

The Danish Utility Regulator (Forsyningstilsynet) says that companies that control the Danish electric grid are charging excessive prices, newspaper Politiken reports. 

The Utility Regulator is a government agency charged with monitoring electricity, gas, district heat and waste services.

“There is clearly some potential for improvement. There is an opportunity for consumers to get off cheaper,” the agency’s director Carsten Smidt told Politiken.

Copenhagen-based company Radius has made a profit of 3 billion kroner per over the last five years, according to the report.

Bases on this, consumer rights organisation Forbrugerrådet Tænk filed a case with the Utility Regulator, which acts as a competition watchdog for the Danish energy sector.

The head of the board at Radius told Politiken the company was being run in accordance with market standards.

The price of electricity increased by 83 percent in Denmark last year, primarily as a result of high gas prices.

Radius, along with grid operators in other regions including Trefor and Vores Elnet, have announced that their tariffs will go up at certain peak times from this year.

The tariff increases will affect all customers, regardless of whether they are on fixed or variable payment plans for their electricity.

Tariffs cover the cost of transport, operation and maintenance of the electricity network.

The energy grid operators have monopolies in the areas in which they operate, but customers can higher tariffs by changing usage habits.

An electricity bill takes into account tariffs, the raw electricity price, VAT and other taxes.

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

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Denmark and Germany announce plans for hydrogen pipeline

Germany and Denmark will work together to construct a pipeline to transport hydrogen between the two countries, ministers announced on Friday.

Denmark and Germany announce plans for hydrogen pipeline

Danish climate minister Lars Aagaard and German counterpart, Minister for the Economy and Climate Robert Habeck, briefed press on Friday after signing a declaration which could see a hydrogen pipeline between the countries completed by 2028.

“A big thank you to Germany when it comes to questions of energy and climate,” Aagaard said.

“We have the same interests in so many areas. Today we are taking it one step further,” he continued.

The declaration means the countries will work on an underground hydrogen pipeline between the Danish region of West Jutland and northern Germany.

The agreement sets out the general framework for the plan and who will lead it, according to Danish news wire Ritzau.

A Danish-German partnership over a hydrogen pipeline can be seen in a broader context of the Danish government’s plans relating to Power-to-X technology.

Power-to-X is the process by which electricity and water are converted into hydrogen using electrolysis. The hydrogen which is produced can be used as fuel in a number of ways, including as power for ferries, trucks and industry.

An agreement passed by the Danish parliament last year aims to build electrolysis capacity in the Nordic country to 4-6 gigawatts by 2030.

Germany already uses a large amount of hydrogen in its industry and will eventually need to convert from fossil fuel-produced hydrogen to hydrogen produced from sustainable sources such as wind and solar.

Demand for hydrogen power in Denmark is currently more limited.