Nærvarme Danmark (Near Heating Denmark) is ceasing its controversial heat pump subscription cancellation fee of nearly 30,000 kroner following criticism from the Consumer Ombudsman. The watchdog deemed the fee a violation of the Consumer Contracts Act.

The Consumer Ombudsman announced that the fee, which applied to customers in the company’s subscription solution for private customers, will now be discontinued. This decision comes after complaints from customers raised concerns about the substantial cost associated with terminating their subscriptions.

Consumer Ombudsman Torben Jensen emphasized that consumers should have the freedom to withdraw from subscription agreements without facing exorbitant fees, stating that such charges render the possibility of withdrawal “virtually illusory.”

Nærvarme Danmark, which served approximately 2,600 customers across Denmark in 2024, according to its website, is now contacting the roughly 50 affected customers who have already paid the criticized fees. The company will use available contact information from the termination of the customer relationships to reach out to those individuals.

In addition to eliminating the cancellation fee, the Consumer Ombudsman also criticized Nærvarme Danmark for insufficient disclosure of the almost 30,000 kroner withdrawal cost. Jensen asserted that consumers must enter into agreements with complete clarity and informed consent, which he believes Nærvarme Danmark failed to provide.

The company also charges a dismantling fee of 710 kroner per hour, separate from the now-discontinued cancellation fee. The Consumer Ombudsman, an independent authority responsible for ensuring compliance with the Marketing Practices Act and other consumer protection laws, advises customers who have paid the fee and cannot find a resolution with Nærvarme Danmark to file a complaint with the Energy Board of Appeal.

Claus Holm Andersen, Director of Nærvarme Danmark, acknowledged the need to “rethink” the company’s risk financing model in response to the Consumer Ombudsman’s findings.