Business Round-Up: Government refuses to help majority of homeowners hit by crippling heating bills

The government is firmly against a proposal to financially help hundreds of thousands of people in Denmark presented with huge heating bills – primarily homeowners served with gas where there is no alternative energy supply.

READ MORE: Parliament to address skyrocketing energy prices 

Yesterday Dansk Folkeparti and Konservative presented a bill suggesting the government help the afflicted homeowners, as in some cases the bills have ballooned to between 10,000 and 20,000 kroner for just one quarter.

The bill points out that the government has actually benefited from the situation – to the tune of several billion kroner.

However, PM Mette Frederiksen told Parliament that the money could be needed in the future to bolster renewable energy.

Could be as much as 4.9 billion kroner
The government has been paying far less in  subsidies to owners of wind turbines and biogas plants. That coupled with the high energy bills has meant the government’s savings are as much as 4.9 billion kroner.

Instead the government favours a 100 million kroner solution, so that municipalities can help needy homeowners: most particularly pensioners and benefit recipients. 

“Is it too much to ask the PM to take it seriously,” DF’s new leader Morten Messerschmidt asked yesterday.

“We are ready to use the money that the climate minister will not spend. That should cover the majority of homeowners.”

Low number of bankruptcies in January
Only 176 companies went bankrupt in January, according to Danmarks Statistik – a
7 percent decrease compared to December 2021. It was the lowest monthly number of bankruptcies in six years – a result attributed to the strong economy and recent state support.

Record year for overnight stays at Danish holiday homes
As expected, 2021 set a new record for the most stays at holiday homes in Denmark. In total, there were 21.9 million overnight stays, according to Danmarks Statistik – an increase of 2 million on 2020, another year in which more people opted to holiday at home due to corona. This was reflected in the figures, as Danish residents accounted for just over half of the stays in 2021, and Germans 10.3 million – down from 13.3 million in 2019. Looking ahead to 2022, bookings by Danish residents have fallen from 26 percent, while German bookings have jumped 15 percent. 

Annual rise in consumer price index the largest since 2008
The total consumer price index rose by 4.3 percent in January when compared to the same month in 2021 – the highest year-on-year rise since August 2008, when the index rose 4.4 percent. Goods have risen by an average of 6.6 percent – the highest rise since 1985 – and prices for electricity, fuel and petrol has also risen. The month-on-month increase in the index was 1.4 percent.

Novo Holdings pays most in taxes, according to Tax Agency
The Danish Tax Agency’s list of the companies that pay the most in taxes, which it first launched in 2013, again confirms Novo Holdings at the top of the list. For 2020, it paid just over 5.7 billion kroner. The list is available here

Another bumper year for Novo Nordisk
Danish pharmaceutical giant Novo Nordisk has confirmed total revenue of 140.8 billion kroner for 2021 – up from 126.9 billion kroner in 2020. It attributed the gains to more sales of treatments for diabetes and obesity. 

Ørsted operating profit up by a third
Energy company Ørsted has confirmed a 33 percent increase in its operating profit to 24 billion kroner. However, looking ahead to 2022, it expects a reduction, somewhere between 19 and 21 billion kroner, partly due to the installation of new wind turbines and photovoltaic systems.

Danske Bank profits soaring with more to come
Danske Bank more than doubled its profits for 2021 to 12.9 billion kroner. It expects to see even higher gains in 2022 thanks to increased economic activity. Meanwhile, Karsten Dybvad is stepping down as chair after almost four years in charge. Jan Thorsgaard Nielsen has been tipped as his successor.

Historic high profits for Maersk thanks to freight demand
Maersk has confirmed record-breaking profits of 117.5 billion kroner for 2021 – primarily due to higher freight rates. The world’s second biggest shipper has made no secret of how its has benefited from the pandemic thanks to the increased worldwide demand for freight. 

Increased freight activity yields DSV a record-high profit
Danish transport group DSV has confirmed a record 11.3 billion kroner profit for 2021 thanks to significantly increased freight activity. 

Nykredit declares record profit
Financial services provider Nykredit has confirmed a record pre-tax profit of 10.7 billion kroner. Over 90 percent of its profits are derived from providing mortgages. 

No certainty for Carlsberg despite bumper year
The brewing giant Carlsberg expects 2022 to be a challenging year despite an increase in revenue last year on the back of producing almost 12 billion litres of beer. The company expects high raw materials to keep affecting its business negatively. 

Øresund Bridge sees higher profits
The operator of the Øresund Bridge has confirmed its revenue is beginning to return to pre-pandemic levels, but not quite. Øresundsbro Konsortiet’s 2021 revenue rose by 75 million kroner.

SAS passengers returning in force
Over 700,000 people travelled with SAS in January – 2.7 times the number in December as the lifting of restrictions resulted in more flights. 

Novozymes back on track
Danish enzyme producer Novozymes saw growth of six percent in 2021, equalling its record turnover of just under 15 billion kroner. 

Electric car sales overtake plug-ins
Sales of electric cars overtook sales of plug-in hybrids in January, according to De Danske Bilimporter. It attributed the lower demand for plug-in hybrids to tax increases. 

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