Flemming switched to natural gas with underfloor heating to save money. But instead, it became more expensive.

Flemming Mortensen had calculated that he could save on his heating bill by switching from gas heating to district heating in his Hedensted home.

Earlier this year, Flemming Mortensen made the decision to change the gas boiler in his house to district heating. The local heating company, Hedensted District Heating, presented an attractive offer according to Flemming Mortensen:

- We were told that the price of district heating would always be below gas prices, and that was nice to hear.

However, when Flemming Mortensen received the first heating bill from Hedensted District Heating, it was significantly higher than he had anticipated:

- It's quite a bit more expensive than what we're used to paying with gas.

Flemming Mortensen had expected to save money by switching to district heating in 2022. But shortly after making the decision, the price of district heating from Hedensted District Heating increased.

- It wasn't quite as fantastic as they had made it out to be, thinks Flemming Mortensen.

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Prices depend on the local heating company

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In recent years, many Danes have been busy replacing their old gas boilers with district heating. But there is no guarantee that district heating on the short term is actually cheaper than gas.

It depends on which heating sources the local heating companies rely on, says Brian Vad Mathiesen, who is a professor of energy planning at Aalborg University:

- Most have made these decisions under the assumption that it was the best. As a board, we were forced to choose the cheapest, green solution, and that's what we did.

But there can be local heating companies that in a period must set the price of district heating higher because the heating sources they have invested in have become more expensive than expected, says Brian Vad Mathiesen:

- It can be that politicians at Christiansborg change some taxes, or it can be that we are exposed to some world market prices that cause prices to change.

Brian Vad Mathiesen emphasizes that even though there can be fluctuations in district heating prices, it is a more stable solution than an oil or gas boiler.

- With the world we live in, where we have swinging prices on natural gas and oil, it's quite natural that we are also exposed to higher or swinging prices if we had kept the solution.

District heating plants can produce heat in various ways, depending on what is cheapest at the time.

- With the collective solution, we can make it different from year to year. We can't do that with hundreds of individual natural gas boilers, says Brian Vad Mathiesen.

Hedensted District Heating plans to lower the prices of district heating again in the future, predicts Brian Vad Mathiesen:

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A bill of 10 million kroner

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In addition to the inflated plans for cheaper heating, Flemming Mortensen and the other Hedensted District Heating customers also received a temporary price increase on their heating bills in the last quarter of the year.

According to Hedensted District Heating, there are several reasons for the high prices of district heating. But the primary reason is that the heating plant, during the energy crisis in 2022, tried to keep heating prices stable.

- We joined forces with several other district heating companies to stay within our budget. So we lost some money, says director Martin Lindhardt.

- We did it because gas prices suddenly increased seven-eight fold, compared to what they were before. And electricity prices followed suit.

This meant that Hedensted District Heating was left with a bill of 10 million kroner. A bill that the new customers now have to help pay.

Martin Lindhardt understands that Flemming Mortensen and the other new customers are frustrated.

- It's understandable. They came in and became part of a community where we always work on the price, and suddenly we might be a little behind, says he.

After the energy crisis, Hedensted District Heating was left with a bill of 10 million kroner, explains director Martin Lindhardt. (Photo: © Katharina Andersen DR)

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’False assumptions’

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Flemming Mortensen does not regret that he switched his gas boiler for district heating. But he believes that Hedensted District Heating was not transparent enough about the economic situation of the heating plant:

- We were given false assumptions. I don't think they told the whole truth. They should have told us back then that they had a deficit, and that we would have to pay for it.

He acknowledges, however, that he himself could have done more to investigate the prices of district heating.

- If I were to have district heating again, I would ask more questions about the economy of the district heating plant. About whether they have control over it, and whether there will be large supplements for new customers, says Flemming Mortensen.

When Flemming Mortensen turns on the floor heating or lights the radiator, he uses district heating. But the bill is now more expensive than when he had a gas boiler.

Hedensted District Heating is working constantly to optimize the operation of the district heating plant, so that it becomes cheaper for customers, says director Martin Lindhardt. The heating plant, for example, has invested in a new wastewater pump, which should produce cheaper and more stable heat.

- We work purposefully to optimize our operation. We are out there evaluating what the cheapest fuel sources are for us, time by time.

According to Martin Lindhardt, Flemming Mortensen and the other customers can also look forward to a cheaper heating bill soon. From the new year, they will set the price of district heating a little lower again.

Warning: This article was translated by a Large Language Model, in case of doubt, you can always visit the original source.