The Danish Electricity Supply Authority has made a decision in a case concerning Odsherred Varme A/S. The Authority assesses that the company cannot include all costs in the heat price in connection with the expansion of the district heating area in the period 2021-2025.
This means that the basis for calculating the heat price will be reduced for the company.
The full decision will be published in the Authority's decision database when Odsherred Varme A/S has had the opportunity to take a position on any confidential information.
According to an excerpt of the decision, the expansion took place both within the existing supply area and to a number of new areas.
The decision concerns how large a portion of the costs for Odsherred Varme A/S' construction project that must be included in the heat prices that the company has charged after the project's completion.
Based on many inquiries from citizens, the Authority has also assessed whether the prices have been set fairly between different customer groups, and whether the method for calculating termination compensation complies with the rules.
The Danish Utilities Authority has assessed that the costs of Odsherred Varme A/S' expansion of the district heating area 2021-2025 can only be partially considered necessary. The company has not acted in a sufficiently economically sound manner, and the heat prices that were charged after the project are assessed as unreasonable.
The Authority therefore sets the depreciation basis at 276.2 million DKK and the annual cost base at 43.4 million DKK, with the option of recognizing losses from non-commissioned activities with an annual price effect of a maximum of 5 percent. over 20 years.
Odsherred Varme A/S must notify a new heating price based on the cost base within six weeks of the decision, and any previously collected overcharge must be reversed.
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