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Updated July 22, 2026
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Worried about high electricity bills after you move to Denmark? Know which parts of your bill you can control (supplier, tariff) and which you can’t (taxes, grid fees). This guide shows exactly how the system works and what to do next.
- Most homes already have a smart meter; the grid company owns the meter.
- Your bill = supplier energy price + grid (transport) fees + taxes + VAT.
- Switching suppliers is free in most cases; settlement can take ~6 weeks.
- Prices vary hourly for spot/variable contracts; fixed contracts protect you from short-term spikes.
Electricity Connection at Homes
When you move into an existing property in Denmark there is usually nothing to do: the building is already connected to the local distribution grid and the smart meter is in place. For most tenants or homeowners you simply start paying the electricity supplier and the grid company that serves your address.
If you move into a new build or a home not yet connected, you must hire a licensed electrician to make the connection and apply to the local grid operator to have a meter installed. The electrician will normally file the paperwork and arrange for the grid company to fit the meter after you pay the connection fee.
If you need basics about bank payments or setting up direct debit for your utility bills, see our practical guide on IBAN in Denmark.
Electricity Meters in Denmark
All domestic and commercial customers are fitted with smart meters that record hourly consumption. The meter remains the property of the grid company (the distribution network operator) – you do not own it.
Smart meters enable automatic remote readings and support time-of-use pricing. Your final bill includes two distinct sellers:
- The electricity supplier who sells you the energy (and any green certification).
- The grid company that charges for transporting electricity to your property.
To find the grid operator for your address and contact details, use the Danish Energy Agency or ask your landlord. If you need a CPR or ID for contracts, check our Tax Identification Number (CPR) in Denmark guide for what to expect.
Price of Electricity in Denmark
Your invoice normally breaks down into:
- Energy (kWh) price from the supplier – either fixed per kWh, a variable market-linked price, or a time-of-use tariff.
- Grid tariff – fixed and variable charges to maintain and operate the local network.
- Taxes, environmental fees and VAT – these can be a very large share of the final cost.
Wholesale and retail prices have been more volatile since the 2022 energy shocks; market prices still move hour-to-hour depending on wind, international gas prices and carbon costs. Many Danish households pay significantly more in the winter when demand is higher and wind generation is lower.
Typical headline numbers reported in the past vary by source and year; if you see specific kWh figures, treat them as estimates and check recent data on the regulator site .
Variable/spot (market) contracts
Price follows the hourly wholesale market. Can be cheapest when wind is strong and expensive when supply is tight. Good if you can shift major usage to low-price hours.
Fixed-price contracts
You pay a fixed kWh price or monthly amount for the contract term. Less volatile but can be more expensive if market prices fall.
Always read the fine print. Some contracts have minimum terms or early-exit fees. Also check whether the supplier offers true green energy certificates or simply offsets.
Changing Your Electricity Supplier in Denmark
You are free to change suppliers, and in most cases there is no switching fee. However, some contracts have a binding period or exit costs – check yours first.
- Check your current contract for a minimum term and any early-exit fees.
- Compare current offers (see Elpris.dk for market comparisons and hourly products).
- Choose a new supplier and provide the meter number from your latest bill; they will request the switch on your behalf.
- The existing supplier undertakes the settlement process (often up to 6 weeks) while the new supplier activates your account.
- Keep your final bill from the old supplier and check the settlement to avoid double payments.
When you contact a potential new supplier have your latest bill ready (meter number, address and customer ID). If you do not yet have a CPR number some suppliers will accept other ID arrangements – ask first.
Electricity Companies in Denmark
Denmark has a mixture of national brands and regional utilities. Prices, customer service and green credentials vary. Compare on price, contract length, and whether the product is a spot/variable tariff or fixed rate.
Smaller suppliers sometimes specialise in green electricity, while larger groups combine supply with grid services. If you want context on why prices are high beyond immediate market movements, our piece on why Denmark is expensive explains the role of taxes and welfare funding – a portion of electricity costs helps finance public services and pensions (pension and welfare funding).
Frequently Asked Questions about Electricity Prices in Denmark
How much do you pay for electricity in Denmark?
There is no single answer – household bills depend on consumption, contract type and taxes. Published averages can be useful for comparison but check current offers on comparison sites.
Why is electricity expensive in Denmark?
Several reasons combine to push prices up: taxes and levies that fund public services, grid maintenance costs, the cost of balancing intermittent renewables, and international wholesale prices for gas and carbon. Geopolitical shocks (like supply disruptions) can add short-term upward pressure.
Which country’s electricity is the cheapest?
Countries with abundant domestic fossil fuels or heavy state subsidies often report the lowest retail prices. Examples frequently cited include oil and gas producing states. Keep in mind these comparisons are influenced by taxes, subsidies and local consumption patterns.
Is electricity cheaper at night in Denmark?
Many tariffs are lower at off-peak hours and some suppliers offer hourly spot-based products that make night-time usage cheaper. Because smart meters record hourly consumption, you can shift flexible loads (washing, charging an EV) to cheaper hours if your contract rewards off-peak use.
Check your most recent bill for the meter number, compare prices on Elpris.dk, and if you want to switch pick a supplier and start the process – it usually takes a few weeks. If you need help with ID or bank setup, see our Tax Identification Number (CPR) in Denmark and IBAN in Denmark guides.