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Danish Gas Network Consumers are Screaming for Heat Networks

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Danish Gas Network Consumers are Screaming for Heat Networks

It is clear to see why Danish heat consumers with individual gas-fired boilers living in gas network zones are screaming for heat networks. Odsherred Heat Network is not an uncommon example of how having a wide energy mix is lowering costs for consumers, and the more heat network connections are made the lower the price of heat will be in the future.

Heat Network customers in Odsherred will not have to worry about their heating bills for the next three years. The Board has decided that the current price of district heating will remain the same for the next three years.

  • “We have reviewed the figures thoroughly and there is absolutely nothing to indicate a need for price increases over the next several years”, says Chairman Mathias Hansen in a press release, where he emphasises that Odsherred Heat Network has a broad energy mix, and that is the main reason why the company can keep the price steady over the coming years.

  • A few years ago, the utility company invested in large heat pumps so that they can control production around the clock, balance the electricity grid, and store heat in thermal stores, explains the chairman, mentioning at the same time that the company’s purchases of electricity and local wood chips are risk-hedged with multi-year contracts.

In addition to the broad energy mix of the network’s five heating plants, there is another, and very significant, factor contributing positively to the company’s finances these years:

  • “We are simply experiencing massive customer uptake”, says the company’s CEO, Fanny Villadsen.

  • “A Heat Network is a community, the more people who help pay the fixed costs, the cheaper heat everyone can get. In less than three years, we have connected 31% more properties to the existing heat network, and this is now having a noticeable effect on all customers. That’s also why we can offer a £116 discount on the last bill this year”, she says.

Nevertheless, Odsherred Heat Network could easily have decided not to freeze the heating price so far into the future, so that it could instead adjust the price up or down as needed. To this the chairman replies:

  • “We have discussed this for a long time in the board and we agree that the way the world is right now, with rising prices for electricity, petrol and food, our customers already have enough financial worries. If we can help bring a bit of peace and reassurance to households by promising that heating bills won’t go up too, then we think it’s the right thing to do,” says Mathias Hansen.

Original article courtesy of: https://danskfjernvarme.dk/uk

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