The Danish Utilities Authority has decided that Fjernvarme Fyn Produktion A/S should be allowed to operate with a higher price ceiling for the supply of district heating. The decision is based on special circumstances that have resulted in the district heating company being hit atypically hard by the general price ceiling in the area, which the Danish Utilities Authority sets annually. The Danish Utilities Authority writes in a press release.
The case is based specifically on an application from Fjernvarme Fyn Produktion A/S for an individual price ceiling for 2024 on surplus heat supplied by Cassin Networks ApS via Tietgenbyens Varmecentral. An individual price ceiling of DKK 135/GJ was applied for. In its decision, the Danish Utilities Authority has set an individual price cap for 2024 of DKK 117/GJ.
On 1 November 2023, the Danish Utilities Authority set the general price cap for surplus heat for 2024 at DKK 110/GJ. This was the first time that the Danish Utilities Authority has set the general price cap, just as the decision for Fjernvarme Fyn Produktion A/S is now the first time that the Danish Utilities Authority has set an individual price cap.
The Danish Utilities Authority's decision has, among other things, emphasized that the surplus heat supply to Fjernvarme Fyn Produktion A/S is based on a 15-year agreement with Cassin Networks ApS. At the same time, the agreement does not allow for early termination without significant financial consequences.
The agreement was entered into in 2017 prior to the Danish Utilities Authority setting the first general price cap on surplus heat.
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