The Consumer Ombudsman has criticized Nærvarme Danmark for imposing high termination fees on its heat pump subscription customers, potentially violating the Consumer Agreements Act. The company charges 29,845 kroner to customers who wish to terminate their subscription within the first ten years.

The Consumer Ombudsman’s investigation was triggered by customer complaints regarding the company’s withdrawal costs. According to Consumer Ombudsman Torben Jensen, consumers must be able to withdraw from subscription agreements without incurring substantial fees, otherwise, the right to withdraw becomes meaningless.

As of 2024, Nærvarme Danmark has around 2600 customers throughout Denmark. The press release does not indicate how many customers have actually paid the disputed fee. Customers who have paid the fee are encouraged to contact the company. If a resolution cannot be reached, they can file a complaint with the Board of Appeal for the Energy Sector.

Beyond the fee itself, the Consumer Ombudsman is also concerned about insufficient disclosure of the substantial withdrawal costs. Torben Jensen stated that companies must ensure consumers enter agreements with full knowledge and clarity. In addition to the termination fee, Nærvarme Danmark also charges a dismantling fee of 710 kroner per hour.

The Consumer Ombudsman is an independent authority responsible for ensuring companies adhere to the Marketing Practices Act and other consumer protection laws. Ritzau has reached out to Nærvarme Danmark for a response.