From Tuesday, citizens and companies can have their extra electricity and gas bills frozen, so that they will only have to be paid at a later date. The Ministry of Business and Industry writes in a press release.
The so-called freezing scheme has been awaiting approval from the European Commission. That approval came on Monday. Therefore, the scheme will enter into force as planned from November 1.
- The scheme has just been approved as state aid by the European Commission, the ministry writes in the release.
A broad majority in the Danish Parliament entered into an agreement on winter aid in September, which will give households and companies the opportunity to postpone part of their growing electricity and gas bills. It will also be possible to postpone part of the district heating bill. However, this option will only come into effect from 1 January.
- The scheme will start later because district heating companies typically settle quarterly, but will continue to apply for a year, the ministry writes.
Pressed process
If you choose to freeze your energy bills, you must repay the loan to the energy company over a number of years.
It will only be possible to freeze the part of the bill that exceeds a level that corresponds to the price you paid for the same amount of energy in the fourth quarter of last year.
According to the electricity sector's trade association, Green Power Denmark, it has been a very pressured process to get the freezing scheme approved. This is what the organisation's CEO, Kristian Jensen, says in a press release.
- It has been a very pressured process, and under normal circumstances it is not ideal. But in the acute price situation, which was particularly true in August and September, it has been a necessity, he says.
The Danish Business Authority and the Danish Energy Agency have been responsible for the practical implementation of the law.
/ritzau/
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