Danish businesses and households share burden of high energy bills

Lower-than-expected wind levels are among factors causing a combination of low supply and high demand for energy.
Lower-than-expected wind levels are among factors causing a combination of low supply and high demand for energy. Photo: Thomas Lekfeldt/Ritzau Scanpix
Businesses and households alike face soaring energy bills in Denmark in 2021.

New calculations from interest organisation Dansk Industri Energi show that industry is expected to pay 18 billion kroner for energy this year.

That is double the 9.5-billion kroner bill incurred in 2019, the last year to be unaffected by the Covid-19 pandemic.

“It’s certain that this is being felt by businesses out there,” said sector director with Dansk Industri Energi, Troels Ranis.

A number of factors are behind escalating energy prices, which are impacting businesses and households alike.

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These include global economic growth following the end of the first wave of coronavirus lockdowns.

That has resulted in increased industrial activity and thereby high demand for energy.

This high demand has coincided with less wind and lower rainfall in Norway producing less sustainable energy; and a relatively constant supply of gas from Russia.

“The basic principle of economics is being manifested. A large demand and low supply gives high prices,” Ranis said.

High energy costs incurred by businesses are likely to be passed to customers, the sector director predicted.

“Prices go up. That’s the short of it. And that’s how it has to be when energy prices increase because this makes it more expensive to produce,” he said.

“And that is passed on to the price of products,” he added.


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