News about the energy crisis: Here’s the “winter-help” package for citizens

by Nathalia Hentze Nielsen
Photo: Port of Aalborg
Photo: Port of Aalborg

The Danish parliament has reached agreement about a so-called winter-package that is designed to help citizens with rising energy prices.

At 09:40 this morning it was reported what the agreement, named A helping hand,  actually contains.

Briefly described, the agreement involves:

  • Voluntary freezing scheme for households
  • Voluntary freezing scheme for businesses
  • Temporary relief of the ordinary electricity bill
  • Better supply of wood pellets
  • The scrapping scheme expands to also include wood pellet stoves
  • Temporary increase of benefits for children and youths
  • Increase of pool for the rollout of district heating
  • Increase  of pool for start-up assistance
  • Increase of subsidy for decoupling gas
  • Decrease of electricity bill when using heat pumps
  • Decrease of electricity rates via bottleneck revenues

Decrease of electricity bill and increase of benefits for children

In order to create more peace of mind about the size of electricity bills, the government has made a broad agreement with a temporary and voluntary freezing scheme for both households and businesses when it comes to expenditures to electricity, gas, and district heating.

This was done in cooperation with the political parties Venstre, Socialistisk Folkeparti, Radikale Venstre, Enhedslisten, Det Konservative Folkeparti, Danmarksdemokraterne, Alternativet, and Moderaterne.

At the same time, the electricity bill is decreased and a one-time increase of the benefit check to children and youths is implemented. Subsidies to green heating solutions are also increased.

The new agreement is a helping hand to the many families, businesses and associations that have a hard time paying their electricity bills due to the rising prices.

The parties have agreed on a temporary and voluntary freezing scheme for electricity and gas that includes those parts of the energy bills that exceed the prices set in the fourth quarter of 2021.

For district heating, the part of the bill that exceeds the prices set per January 2022 for the ten most expensive district heating companies can be frozen to shield customers from even higher prices.

The Danish State also offers loans to energy companies, which correspond to those amounts that customers have asked to have frozen. They furthermore guarantees that the companies will receive the debt they’re owed. This scheme will last for 12 months.

The frozen amounts of money are paid in installments to the energy companies in a period lasting four years once then 12 months have passed. The customer will have a one year payment break. As the customers pay back to the energy companies, the companies will also pay back their loan to the state.

Minister for Finance Nicolai Wammen says:

“Many citizens are hard pressed due to the rising prices. Many people are especially worried about the size of their energy bills. To give Danish households more safety, the government has agreed to a broad deal, which includes a voluntary freezing scheme, lower electricity bills, and increased benefits to children. With this deal, Danish households and companies will receive a helping hand. The agreement does not solve all the issues, but it gives more safety when winter arrives. I am happy that many of the Parliament’s parties have taken responsibility during these uncertain times.”

The government will also ask Energinet (Energy Net) to lower their tariffs in 2023.

You can read more about the details of the agreement here.