A number of CHP plants' failed speculation in electricity prices will now cost Jutland district heating consumers extra bills of several thousand kroner. This is happening after the management of the local heating plants gambled on electricity prices remaining low prior to the energy crisis. The subsequent skyrocketing of energy prices has triggered a huge loss, totaling a three-digit million, writes EnergiWatch.
- We were unlucky to run into those huge energy price increases. That's what made the loss what it was. It shouldn't have been possible with such large losses, says Poul Kristensen, chairman of Sdr. Herreds Kraftvarmeværker, who has lost approx. two million. DKK as a result of speculation.
- Ultimately, it is the consumers who will pay for it. If you calculate it for each consumer, it is perhaps DKK 2,500-3,000, says the chairman of Sdr. Herreds Kraftvarmeværker, which supplies district heating to a handful of smaller villages in southern Mors.
The loss is the result of a dispute in the bankruptcy estate of Dansk Kraftvarme Kapacitet, where seven Jutland district heating companies have been on the debtor side, while the Norwegian state-owned electricity company Statkraft has been on the creditor side.
The dispute stems from the fact that the district heating companies had entered into an agreement to compensate Statkraft if the market price of electricity exceeded a set limit, so when prices ran away at the end of 2021, the companies were faced with a demand for payment of just over DKK 160 million. DKK. The case was settled in the autumn of 2022, with the district heating companies agreeing to pay a total bill of over DKK 100 million.
- In the risk assessments we made, no one could have predicted that prices would increase as much as they did, says Jens Bastrup, CEO of Silkeborg Forsyning, which is by far the largest district heating company in the settlement with a loss of approximately DKK 70 million.
The seven affected district heating companies are:
• Silkeborg Forsyning
• Oksbøl Varmeværk
• Sdr. Herreds Varmeværk
• Snedsted Varmeværk
• Hirtshals Fjernvarme
• Vildbjerg Varmeværk
• V-S-V Kraftvarmeværk
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