Near Heating Denmark (Nærvarme Danmark) will cease charging its nearly 30,000 kroner cancellation fee after criticism from the Consumer Ombudsman, who deemed the fee a violation of the Consumer Contracts Act. The company will also contact approximately 50 affected customers who have already paid the criticized fee to resolve the matter.

The Consumer Ombudsman stated that such a substantial fee effectively negates the consumer’s right to withdraw from subscription agreements. The fee, amounting to 29,845 kroner, applied to customers in the company’s subscription solution for private customers.

The Consumer Ombudsman also criticized Nærvarme Danmark for insufficient disclosure of the withdrawal costs. According to the Ombudsman, consumers must be able to enter agreements on a clear and informed basis, which the company failed to ensure. In addition to the cancellation fee, Nærvarme Danmark also charges a removal fee of 710 kroner per hour.

Nærvarme Danmark, which had approximately 2600 customers across Denmark in 2024, according to its website, will now have to rethink the financing of the company’s risk, according to Director Claus Holm Andersen. Those who have paid the fee can contact the company directly or complain to the Energy Board of Appeals if a resolution cannot be reached. The parent company SEF will contact the affected customers with available contact information.