Lucíe Rychla
September 16th, 2016

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The Danish government yesterday presented a new energy-supply strategy aiming to reduce households’ utility expenses by 2,800 kroner per year and simultaneously save the state 5.9 billion kroner by 2025.

However, Dansk Fjernvarme (the district heating association) argues the changes will lead to a price increase of up to 4,800 kroner annually – especially for households that get energy from small power plants.

Over 200,000 households, particularly in the countryside, will be affected by the new policy that comes into force in 2019.

According to Dansk Fjernvarme, the average Danish family currently spends 14,179 kroner on heating per year and this amount will increase to 18,979 kroner in 2019.

READ MORE: Heating bills for old homes much higher

No reduced costs for Jutlanders
Even with the projected savings of 2,800 kroner in 2025, the heating bill will go up by 2,000 kroner, claims Dansk Fjernvarme.

Furthermore, the district heating association estimates that about 1,400 households will end up paying as much as 10,000 kroner more.

Many of these are located in Jutland, where heating costs are already higher than the national annual average.

Brian Vad Mathiesen, a professor of energy planning at Aalborg University, agrees the 200,000 households will not experience the government’s desired effects of the new strategy.

“The energy-supply plan and the price ceiling will not help to change the situation for this group of district heating customers,” Mathiesen told DR.

The professor explained that many small power plants will not have the finances to install new efficient technologies, which is something the governmental plan counts on.