Denmark plans to provide guarantees of 100 billion Danish kroner to energy companies that have faced problems due to a sharp rise in energy prices, the government said.

The guarantees are aimed at providing the necessary liquidity for companies facing serious problems caused by high electricity prices, Reuters reported. This will help ensure stability in the electricity market, Business Minister Simon Kollerup said at a news conference.

Earlier Thursday, Britain's new prime minister, Liz Truss, said Britain would launch a £40 billion scheme to ensure that wholesale energy suppliers would not suffer from liquidity shortages.

Finland and Sweden on Sunday announced plans to provide billions of dollars in liquidity guarantees to their countries' energy companies in response to Europe's deepening energy crisis.