The astronomical heat calculations in Odsherred have been invalidated by the authorities – which clearly shows that you can't just let things slide.

The entire cost of the cold-expanded district heating expansion in Odsherred cannot be passed on to customers.

That’s the decision made today by the Danish Energy Regulatory Authority (Forsyningstilsynet). The Authority does not consider the company’s expenses for the expansion fully necessary, so the heating price must now be calculated based on a lower amount.

> *"This means they will get a significantly lower price. How much lower, I cannot say."*

> **Per Nikolaj Bukh**, professor in management accounting

- *"The depreciation basis they used was around 800 million kroner, but we’ve reduced it to 276 million, so it’s a substantial cut,"* says Carsten Smidt, director of the Danish Energy Regulatory Authority.

Last year, the district heating price was raised by up to 76 percent, but this increase is now one that customers can expect to be dropped.

- *"It only goes in one direction. A lower price than it otherwise would have been,"* says Carsten Smidt, director of the Danish Energy Regulatory Authority.

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Customers refused to pay price hikes

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Not all customers of Odsherred Varme have chosen to pay the higher heating bill.

In 2024, Frederik Klausen from the village of Grevinge paid 23,700 kroner for his district heating.

But half a year ago, he received the first bill from Odsherred Forsyning, where the new prices were in effect.

And with that bill, he could see that his annual heating expense would be just under 50,000 kroner.

> *"We knew that if the price hikes were rejected, there was a risk that the heating company could go bankrupt."*

> **Frederik Klausen**, district heating customer in Grevinge

- *"I haven’t said yes or no to anything in this case. Suddenly, I’m supposed to pay more than double. It’s like a modern form of the stavnsbånd [a historical system of forced labor],"* Frederik Klausen told DR last year.

That’s why Frederik Klausen and several others chose not to pay the full price at all. (Read more: [Civil disobedience: Heating customers refuse to pay price hikes](https://www.dr.dk/nyheder/regionale/sjaelland/civil-ulydighed-varmekunder-naegter-betale-prisstigninger))

And today, after the decision from the Danish Energy Regulatory Authority, he is happy about it:

- *"We knew that if the price hikes were rejected, there was a risk that the heating company could go bankrupt. And when you’ve already paid three months in advance, you’ve lost your money as a simple creditor,"* says Frederik Klausen today.

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Civil disobedience has been a good decision for heating customers

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And district heating customers will feel the impact of the Authority’s decision on their heating bills.

That’s what **Per Nikolaj Bukh**, professor in management accounting at Aalborg University, says.

- *"This means they will get a significantly lower price. How much lower, I cannot say. But because they can’t include all the costs of this expansion, the price will drop,"* he explains.

One possible scenario in the future is that the company ends up in bankruptcy.

But that doesn’t mean heating customers should fear freezing this winter, says Per Nikolaj Bukh.

- *"That’s been taken into account. The municipality has options to provide liquidity so that customers won’t risk being left without heat this winter. So consumers shouldn’t worry. They should focus on what their heating bill will look like moving forward, and it appears to be significantly lower,"* he says.

Odsherred Varme now has six weeks to report how it will set the heating price in the future.

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Some customers will get money back

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Pernille Ingildsen, CEO of Odsherred Forsyning and thus Odsherred Varme, confirms that district heating customers will receive a price reduction based on the Danish Energy Regulatory Authority’s decision—and those who have already paid will get their money back.

Read also: [Bitte lives in Odsherred—today her heating bill rises by 140 percent](https://www.dr.dk/nyheder/indland/bitte-bor-i-odsherred-i-dag-stiger-hendes-varmeregning-med-140-procent)

The utility company has not yet decided whether it will appeal the decision to the Energy Complaints Board, says Pernille Ingildsen. With the Danish Energy Regulatory Authority’s ruling, the restructuring of Odsherred Varme must now be reassessed entirely.

- *"Now we’re discussing with our creditors how to handle the new situation,"* says Pernille Ingildsen and elaborates:

- *"Whether a new agreement based on the Danish Energy Regulatory Authority’s decision is possible depends on the creditors’ goodwill. If we can’t reach an agreement with them, we’ll have to consider whether a new restructuring or bankruptcy proceedings are needed."*

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This case is highly unusual

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When the Danish Energy Regulatory Authority makes a decision like this, it’s not everyday business, says director Carsten Smidt.

- *"This is a very unusual case. It’s both in terms of the size of the amount involved and the fact that it’s rare for us to make decisions directly reducing the costs that companies can include in their prices."*

> *"My job is to clean up a very difficult situation."*

> **Pernille Ingildsen**, director of Odsherred Forsyning

Pernille Ingildsen, director of Odsherred Forsyning, expresses empathy for the heating customers and the situation the company has put them in:

- *"My job is to clean up a very difficult situation, and that’s what the restructuring is an attempt at. But the Danish Energy Regulatory Authority says something else, and that’s something we have to take into consideration and then try to find a new solution."*

Even though the case is far from over, this is an important milestone for heating customers in Odsherred that the Danish Energy Regulatory Authority has now rejected the heating prices in Odsherred.

- *"It means a lot. It shows that you shouldn’t just let yourself be rolled over,"* says Frederik Klausen.

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