Danish government proposes temporary ceiling on energy bills

COPENHAGEN (Reuters) - Denmark's government on Wednesday proposed a temporary ceiling for consumers' gas, electricity and district heating costs this winter to counter soaring energy prices.

The proposal comes as governments around Europe scramble to contain a quickly escalating energy crisis, fuelled by Russia's invasion of Ukraine, which is hurting both consumers and companies.

Households and businesses would under the proposal be able to delay paying the share of a bill that surpasses a certain price threshold, Prime Minister Frederiksen told journalists.

"This will mean that the individual family can set a budget ... (and) that there will be certainty about the maximum price you will have to pay," she said

Finance Minister Nicolai Wammen said the government expected the initiative to cost around 45 billion Danish crowns ($6.06 billion) and have "close to zero" impact on inflation.

The Social Democrat minority government would now start negotiations with other parties to obtain enough support from a majority in parliament for the proposal to be passed.

($1 = 7.4316 Danish crowns)

(Reporting by Nikolaj Skydsgaard, writing by Anna Ringstrom, editing by Stine Jacobsen)