The price of central heating rises. However, in Grindsted, customers manage with constant low expenses.

Many different heating sources keep the price of district heating in Grindsted low.

Grindsted Heating and Power (GEV) at the GEV plant in Grindsted. The utility company supplies both district heating, electricity, water, and fiber optics. (Photo: Charlotte Dahl)

By Annette Jespersen ([email protected]) 13 minutes ago

When the district heating bill from Grindsted arrives in customers' e-boxes, it remains at a constant, low level.

For many years, cheap peat was the one keeping the price in check.

But peat prices soared, so the local utility company, GEV in Grindsted, is now betting on many different ways to produce steam and heat.

And it has paid off, says Director Renè Heiselberg Gier.

- We want enormous flexibility in our production. And the more various tools we have to play with, the better, the director says.

In 2024, Grindsted district heating customers paid around 5,000 DKK less than the average district heating customer.

The price was 11,022 DKK for a house of 130 square meters in August, while the national average was 15,929 DKK.

According to the latest price statistics from the Energy Regulatory Authority, which were released this week.

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District Heating Prices

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The Energy Regulatory Authority's latest price statistics for August 2024:

* District heating prices have risen by 7.1 percent from August 2023 to August 2024.

* 181 district heating companies have set the price.

* 108 district heating companies have lowered the price.

* The cheapest heating of a standard house of 130 square meters is 6,271 DKK per year.

* The most expensive is 43,999 DKK per year.

* There are price increases of up to 120 percent from August 2023 to August 2024 at some plants.

* At other plants, prices fell by up to 57 percent in the same period.

Source: Energy Regulatory Authority's price statistics

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Hedensted Feels the Aftermath of the Energy Crisis

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District heating prices can otherwise be unstable and suddenly surge due to fluctuating electricity and gas prices.

An example is Hedensted District Heating, which is still feeling the consequences of the energy crisis in 2022.

The crisis resulted in Hedensted District Heating having a bill of ten million DKK, and therefore had to raise the price.

As a result, customers paid 23,742 DKK to heat a standard house of 130 square meters in the year.

New customers are now paying this amount.

Read also: Flemming Switched from Gas to District Heating to Save Money. But Instead, It Became More Expensive ()

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Professor: Heating Sources Determine Prices

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The price of district heating depends, among other things, on which heating sources the local heating companies are betting on, says Brian Vad Mathiesen, who is a professor of energy planning at Aalborg University.

And therefore, there may be local heating companies that, in a given period, must set the price for district heating high because the heating sources they have invested in have become more expensive than expected.

The management and board of GEV are therefore continuing to take on new heating sources.

This includes waste heat from a nearby factory, a peat power plant, gas collectors, biogas, gas oil, heat pumps, and electric heaters.

But it will be electricity that, in the future, will keep the prices of district heating in Grindsted down.

Here is GEV's accumulation tank for storing warm district heating water centrally.

They will be filled with warm water from heat pumps and electric heaters when the electricity is cheap. The warm water is then used in radiators when the electricity price is high.

- So as long as the electricity price is low on some occasions, we can easily keep the district heating price down, says Director Renè Heiselberg Gier.

GEV has around 3,500 customers and is a utility company that supplies both district heating, electricity, water, and fiber optics.

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