ODSHERRED: The entire reconstruction agreement for the crisis-stricken utility company Odsherred Varme is in jeopardy when the Danish Electricity Authority ruled on Tuesday that the company's heat prices are unreasonably high. This is reported by EnergiWatch.
- This will have an impact on the heat price and thus on our ability to pay the debt we have to our creditors, says Pernille Ingildsen, CEO of Odsherred Varme, to the media, explaining that the company must therefore have a new conversation with its creditors about the terms under which the company will be operated in the future.
Pernille Ingildsen states that the company cannot yet say what concrete consequences the decision will have for the heat price, but that it expects to be able to announce something before Easter. It has not yet been decided whether the decision will be appealed.
The decision from the Danish Public Utilities Authority was made on Tuesday and states that Odsherred Varme has not had grounds to raise heating prices to the extent that the company has done to reduce the billion-kroner debt that arose after the failed district heating rollout in the municipality.
Here it was stated that Odsherred Varme A/S is in principle allowed to include the costs from the expansion of the district heating network in 2021-2025 in the heating price. However, the authority assesses that not all of the costs were necessary. At the same time, the inspectorate determined that the heating prices charged by the company after the project were higher than what is considered reasonable according to the Heat Supply Act.
In concrete terms, this means that the company must lower heating prices and refund money to customers if too much has been charged.
ap
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
