Nordic nation offers energy crisis solution

Denmark plans to allow households and businesses to pay excess energy costs over time

The Danish government has proposed setting a temporary cap on energy bills for the upcoming winter and allowing consumers to pay sums incurred above the established level over time, Prime Minister Mette Frederiksen said on Wednesday. 

The measure would allow households and businesses to delay paying the share of bills for gas, electricity, and heating above the set price level. The government also once again called for reasonable energy consumption, as all consumers will have to eventually pay for the energy they receive.  

According to Danish Finance Minister Nicolai Wammen, the initiative is expected to cost the government some 45 billion Danish kroner ($6 billion). 

The government is planning to discuss the initiative as soon as possible in order to have time to adopt it before the onset of winter. 

In June, the Confederation of Danish Industry warned that the latest power supply crunch could lead to a spike in domestic production costs and the closure of dozens of companies across the country.  

READ MORE: Danish inflation nears 40-year high

Inflation Denmark hit a 40-year high in August, surging 8.9% year-over-year. The dramatic growth was attributed to soaring prices for electricity, gas and food.

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