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Odsherred Forsyning faces budget deficit exceeding half a billion kroner in Denmark

Friday 25th 2024 on 07:03 in  
Denmark

Odsherred Forsyning is facing a significant budget deficit exceeding half a billion kroner, prompting serious concerns about the financial health of the utility company responsible for waste management, sewage treatment, and drinking water supply in Odsherred. The rollout of district heating has particularly struggled, leading to a suspension of all related projects on April 9 after work was halted mid-morning.

Approved in April 2022, the district heating initiative was initially supported by the local mayor, Karina Vincentz, who highlighted its contribution to green transition, job creation, and potential cost reductions for residents. However, these anticipated benefits are now in question, as the utility’s financial predicament may impact municipal finances for years to come.

Odsherred Forsyning attempted to attract customers by offering free connections to the district heating network— a stark contrast to the steep fees in other regions, which often range between 80,000 and 90,000 kroner per household. The former chairman, Matthias Hansen, justified this plan by stating that a higher number of users would help distribute costs more effectively. However, financial miscalculations led to escalating expenses, resulting in the termination and subsequent dismissal of the company’s finance director.

Amid these troubles, the sewerage projects for major holiday home areas in Odsherred were paused due to financial overruns, with district heating experiencing similar setbacks. The scandal surrounding Odsherred Forsyning has already led to resignations within its board and management.

At present, Odsherred Municipality is liable for over one billion kroner in loans accrued by companies under Odsherred Forsyning, with more than half a billion tied to a loan guarantee for district heating. Prolonged negotiations with Nordea aim to avert a potential bankruptcy of the heating company, with further updates expected in a press conference scheduled today.

Source 
(via dr.dk)