It is not just private homes that are affected by rising electricity prices. For Danish companies, electricity costs have also exploded in 2022. This is shown by a new analysis from the Danish Chamber of Commerce.
According to calculations from the Danish Chamber of Commerce, electricity costs for businesses will end up at around 33 billion kroner in 2022. Figures from the Danish Energy Agency show that this is an increase of almost 19 billion compared to 2021, when according to the agency the figure was 13.7 billion kroner.
- If we look back to 2019, the electricity bill for businesses was almost six billion kroner. So we have witnessed a real explosion in electricity costs for businesses. Both in 2021, but especially in 2022, says Tore Stramer, chief economist at Dansk Erhverv.
On the way to the highest number of bankruptcies in 12 years
At SME Denmark, which represents small and medium-sized enterprises, we can nod in recognition of the pressure that rising electricity prices have caused.
- Just over one in six companies has reduced or adjusted production as a result of rising energy prices. The companies have been quite creative, for example, in adjusting their opening hours. So they are open on Saturdays instead of Fridays, because energy is cheaper there, says consultant at SME Denmark, Lasse Lundquist.
The number of bankruptcies in 2022 is on track to reach the highest level in 12 years in Denmark. This is where rising electricity prices come into play.
- Many companies have been challenged with liquidity after corona and may even still be paying off corona debt. When these multiplied energy bills come through the door at the same time, it gives many companies a death blow that means they have to turn the key, says Lasse Lundquist.
Having an impact on consumers
Both SME Denmark and the Danish Chamber of Commerce say that it is undoubtedly the rising electricity prices that are currently worrying companies the most. And this is something that also affects consumers.
- When companies try to adjust their production to save on energy prices, it can affect the level of service for consumers, says Lasse Lundquist from SME Denmark.
Danish Business also believes that it will hit consumers' wallets to a greater extent.
- A larger part of the costs will be passed on to consumers in the form of rising prices. In other words, inflation will remain at a very high level, says Tore Stramer.
In addition, according to Tore Stramer, it will limit companies' ability to grow, as companies will no longer have money left over to invest or hire new employees.
- So it pulls activity out of the Danish economy, says the chief economist.
/ritzau/
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