Energinet.Dk Increases Transport Price of Natural Gas

Energinet.dk, which is engaged in the distribution of power and natural gas, has announced that from October 1, 2008, transport of natural gas through the Danish gas transmission pipelines will see a price increase of almost 35%. At the same time, payment for emergency supply will increase by more than 15%.

Energinet.dk has said that it will increase the price of capacity payments in relation to annual contracts from DKK8.58/kWh/hour/year to DKK11.54/kWh/hour/year. At the same time, the volume-based tariff will increase by well over 20% from DKK0.00096/kWh to DKK0.00117/kWh.

According to the company, the price increase is anticipated and is introduced primarily because the tariffs were lowered by almost 40% as of October 1, 2007, due to repayment of excess revenue.

Energinet.dk will also raise the volume-based payment for emergency supply by 17% from DKK0.00607/kWh to DKK0.00712/kWh. The increase in this tariff is due to the rising prices of emergency supply services from the gas storage facilities because the storage prices were determined by auction in 2008.