With Russia invading Ukraine, it has had a profound effect on electricity prices in Denmark. The war in Ukraine, sanctions against Russian oil, and rising oil and gas prices have led to the price of electricity in Denmark increasing by as much as 15% in the second and third quarters of 2022.
According to the Danish power supply authority, compared to the third quarter of 2021, the increase in electricity has been nearly 83%. So, that brings us to the question – what are electricity prices in Denmark?
In October 2022, the wholesale electricity price in Denmark was 137.08 euros. Statistics reveal that this price is around 21% higher compared to the price that was prevalent in the same month a year earlier. This is adequate proof that electricity prices in Denmark and the rest of Europe are soaring, and there is no current way to stem this exponential price increase.
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Winter is the time when wind power generation is low in Denmark. That is because wind speeds reduce, and this, in turn, affects power generation. Furthermore, natural gas and coal prices are also soaring. Many blame the Russian-Ukraine conflict for the increased natural gas and coal prices. So, this is also affecting electricity prices in Denmark.
So, if you are moving to Denmark for work, long-term stay, or higher education, you should know more about electricity prices in Denmark as that will affect your monthly budget and make the cost of living expenses. So, you should know a few things about electricity connection and prices in the country.
Electricity Connection at Homes
Homes in Denmark are automatically connected to the grid. So, when you move into your new home, it will already have electricity, and you will not have to worry about getting a connection.
Denmark follows EU regulations. Hence, people get electricity in their homes through the local grids. In Denmark, every grid is operated by a local electricity company; hence, there are several electricity grid companies in the country. Depending on where you reside, one of these companies will be responsible for connecting buildings and homes in that area to the local grid.
In the case of a new construction or a building that was previously not connected to the local grid, it can still get an electricity connection. To connect to the local grid, you would have to contact a qualified and licensed electrician. This electrician will then contact the local grid company on your behalf to install an electricity meter in your new home. After paying the necessary fee, the grid company will install the meter, and after that, your new home will get connected to the local electricity grid.
Electricity Meters in Denmark
To be billed for electricity each month, you need an electricity meter that maintains a record of your electricity consumption. It is prudent to note that you do not own the meter. Rather, the ownership of the electricity meter lies with the local grid company supplying you with electricity.
All homes and commercial buildings in Denmark have smart meters. That enables the local grid companies to read the meters and bill consumers remotely. It is important to note that while you connect to the local electricity grid, it is an electricity supply company that delivers electricity to your home. When you are billed for electricity consumption, your bill has two components:
- The amount of electricity you consume
- The cost of transporting electricity through the grid to your home
Unlike an electricity supply company, a grid company is responsible for the proper operation and management of the grid. It also handles grid upgrades and reconstruction, grid expansion to cover more homes and buildings in the local area, ensuring energy savings, and measuring electricity consumption by end users.
You can check the Danish Energy website to find out which grid your home is connected to. You can enter your address in the search bar, which will give you the grid company that operates and distributes electricity in your area.
Price of Electricity in Denmark
The average cost of electricity in a regular household in Denmark is approximately 3.461 DKK per kWh, whereas, for a business, the average price of electricity is 1.947 DKK per kWh.
In Denmark, the price of electricity can vary from hour to hour. So, at certain times of the day, you will pay more for electricity consumption than at other times. That is because prices are determined by peak and off-peak consumption.
During peak hours, the usage and demand for electricity are at the highest levels. Hence, electricity supply companies charge a premium. On the other hand, during off-peak hours, the electricity demand is at the lowest; during those hours, they charge a low price. Since the price of electricity in Denmark is quite high compared to several other developed nations, like the US or Canada, people often wonder whether they can change their electricity supplier and get more affordable electricity.
Changing Your Electricity Supplier in Denmark
As mentioned earlier, all homes are automatically connected to the local electrical grids. Hence, when people move in and begin using electricity, the smart meters installed in their homes will measure their electricity consumption and be billed accordingly.
To find out which electricity supplier is the most affordable, you can check the Danish Utility Regulator-operated website Elpris.dk. That will enable you to compare electricity prices across different suppliers in Denmark, which will help you find an affordable supplier. The good news is that you can change your electricity supply company. You can do this without incurring a fee.
Before you rush to change your electricity supply company, consider the agreement with your existing supplier to determine whether the contract is binding. Many electricity supply companies have a lock-in period of 6 months, during which you cannot break the contract. Some companies may also add a clause that prohibits you from changing your electricity supplier, while others may mandate that you pay a fee if you want to break the existing contract.
When you find an electricity supplier you want to switch to, you can get in touch with them, and they will help you change your supplier. You must sign a new agreement with your chosen electricity supply company. However, before that, you would have to send a request letter to your existing supplier to inform them that you want to switch your electricity supplier. The new supplier on your behalf will handle that. The existing supplier will take around 6 weeks to complete the settlement process.
When you get in touch with the new supplier, have your latest electricity bill handy as it will have certain information you would have to furnish. Usually, suppliers ask for the meter number. You can provide your name, address, and CPR number if that is unavailable.
Electricity Companies in Denmark
Here are some of the most well-known electricity companies in Denmark:
| Name of the Company | Cost of Electricity/Month | Pricing Policy | Comments |
|---|---|---|---|
| Netto Power | 345 DKK | Variable pricing | Most popular |
| Energifyn | 360 DKK | Eco-friendly and variable pricing | Excellent customer service |
| Norlys | 381 DKK | Green electricity generated from wind, water, and sun | Most sustainable choice |
| Velkommen | 336 DKK | Green electricity | Offers discounts to new consumers |
| Modstrøm | 379 DKK | Helps with energy savings | Offers new consumers 10 free energy-saving bulbs |
| Gasel | 388 DKK | Green electricity | – |
These are some of the most well-known electricity supply companies in Denmark. As you can see that electricity prices vary from company to company. You can compare prices and then select one that suits your needs.
Frequently Asked Questions about Electricity Prices in Denmark
Here are a few FAQs about electricity prices in Denmark that most people ask:
How much do you pay for electricity in Denmark?
On average, the electricity cost for a household is around 3.461 DKK/kWh. On the other hand, businesses pay 1.947 DKK/kWh.
Why is electricity expensive in Denmark?
There is a reason electricity is expensive in Denmark, and Danes do not mind paying the high costs. That is because a major chunk of the cost of electricity is taxes. Nearly 56% of what you pay for electricity is in the form of taxes, which are used to support the welfare schemes launched by the government. If you analyze your electricity bill, you will realize that the taxes levied are much higher than what it costs to produce, transmit, and distribute electricity.
Which country’s electricity is the cheapest?
Countries that produce crude oil and natural gas have the cheapest electricity prices in the world. So, you can say that countries like Qatar, Saudi Arabia, and Russia have the lowest prices. On average, a single household pays under US$0.1 per kWh.
Is electricity cheaper at night in Denmark?
Yes, electricity is cheaper at night in Denmark. You may end up paying less for your consumption at night as that will be considered an off-peak period when the electricity demand is low. On the other hand, during peak periods, when the demand is high, your electricity supply company may charge a higher rate.
Now you know everything there is to know about electricity prices in Denmark. You will know what to expect when you relocate to this country and get your electricity bills.
