The Danish Energy Agency has published price caps for district heating, which apply for the period 2023-2025. The measure is intended to strengthen transparency in the district heating area and give consumers better opportunities to assess their heating prices in relation to alternative heating methods. The Danish Energy Agency writes in a press release.
The price caps have been set with a precautionary surcharge of 15 percent and are DKK 486/GJ for 2023, DKK 410/GJ for 2024 and DKK 412/GJ for 2025.
The scheme is intended to provide consumers with a guideline as to whether their heating supply company has prices that are higher than other solutions such as an air-to-water heat pump. However, the Danish Energy Agency emphasizes that this is not a traditional price cap that limits the ability of companies to charge higher amounts.
From 2026, the Danish Energy Authority will be responsible for annually calculating and publishing the price caps. At the same time, a list of companies that are above the cap on average will be prepared. These companies will be required to prepare plans to reduce prices. Failure to do so could result in consumers' bindings to district heating being lifted.
The price cap was originally adopted as part of the Climate Agreement on Green Electricity and Heat in 2022. A subsequent agreement in 2024 clarified that the cap should be based on the costs of an individual air-to-water heat pump.
The price cap covers all heat supply companies in Denmark and is based on the costs of an individual air-to-water heat pump. However, the ceiling does not take into account local differences such as variations in electricity prices, the home's insulation level or the costs of switching to a new heating solution.
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