A new executive order took effect on September 1, 2025. It defines a standard house for district heating as 125 m² with an annual heat consumption of 13.4 MWh.
| 4 September 2025 |
By Kim Vejrup, the Danish District Heating Association
In May and June, a new definition of the term “standard house” was out for consultation. The consultation has now concluded, so from 1 September onward, a standard house is defined as a 125 m² home with an annual heat consumption of 13.4 MWh. This is stated in the executive order published by the Danish Energy Agency.
This definition will also form the basis for the Danish Utility Regulator’s (Forsyningstilsynet’s) determination of the price cap for 2026. This is evident from an amending executive order that came into force on September 1, 2025.
Over the past year, several different calculations of the standard house have been on the table. Back in May, the Danish Energy Agency announced a standard house at 14 MWh, but an error in the analysis was discovered during the consultation process, and the final analysis therefore lands on an annual heat consumption of 13.4 MWh.
“It’s very positive that the update of the standard house is now complete and that we have a much more accurate standard house for district heating consumers. It provides fairer regulation of companies when the consumer price cap is set. At the same time, it helps the price statistics present a more accurate picture of what a typical district heating customer pays for heating,” says Bettina Aagaard Vester, Head of Analysis and Statistics at the Danish District Heating Association.
Consumer price cap for 2026 is based on the new definition
With the new standard house, the calculation of the consumer price cap for 2026 will, all else being equal, be approximately 20 percent higher than if the heat consumption from the old standard house of 18.1 MWh were used. The consumer price cap for 2023–2025 is still based on the old definition of 18.1 MWh, but with a 15 percent prudence margin to accommodate the uncertainty associated with the old price cap.
The Danish District Heating Association has already updated its own heat price statistics to follow the new standard house. These show that, as of 1 January 2025, the average price for a standard house of 125 m² and 13.4 MWh was DKK 13,302 per year. For a standard apartment of 80 m² and 7.8 MWh, the price as of January 1, 2025, averaged DKK 8,238.
The new standard house must also be used in the future for the calculation of price notifications to the Danish Utility Regulator and for the heat price statistics that the regulator compiles twice a year.
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Head of Analysis & Statistics
Bettina Aagaard Vester
- Analyses of the district heating sector
- Analyses within the green transition
- Heat prices
Translated from the District Heating Association’s original article.
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