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Intro OfferGet a 400 DKK discount on your first bill
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- Payment fee 6.5 DKK
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- Green supplement 10 øre/kWh
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Intro Offer0 DKK sub. and spot supplement for 6 months
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Intro Offer0 DKK sub. and spot supplement for 6 months
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Intro Offer500 DKK welcome discount
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Intro Offer500 DKK welcome discount
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Intro Offer500 DKK welcome discount
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Intro Offer500 DKK welcome discount
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Intro Offer0 DKK sub. and supplement for the rest of the year
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Intro Offer0 øre supplement for 6 months
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- Payment fee 6.75 DKK
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- Other fees 1.85 øre/kWh
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Intro OfferGet a free PS5 controller
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- Payment fee 8 DKK
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Intro Offer0 DKK in spot supplement and sub. until June 30th
Choosing your electricity provider is one of the first administrative tasks you will face when moving to Denmark. Understanding electricity prices Denmark is essential for managing your monthly budget, as costs can fluctuate significantly based on global energy markets and local taxation. The Danish energy sector is fully liberalized, meaning consumers have the freedom to choose their own electricity supplier.
This freedom of choice applies to both tenants and homeowners. Unlike in some countries where the landlord manages utilities, the standard practice in Denmark is for the resident to hold the direct contract with the power company. You must take action to ensure the lights turn on when you move into a new apartment or house.
The Structure of the Danish Electricity Market
To navigate the system effectively, you must understand the difference between the two main entities involved in delivering power to your home. The market is split into infrastructure and commercial supply. This distinction determines who you pay and who you call if there is a problem.
The Grid Operator (Netselskab)
The grid operator owns the physical cables, meters, and infrastructure that transport electricity to your residence. You cannot choose your grid operator. They are determined strictly by your geographical location. Each area in Denmark has a designated monopoly responsible for the maintenance of the grid.
The grid operator is responsible for reading your meter and fixing technical issues such as power outages or line faults. They charge a fee for the transportation of electricity, which is regulated by the state to prevent price gouging. You do not sign a contract with them directly; your connection exists automatically based on the property address.
The Electricity Provider (Elleverandør)
The electricity provider is the commercial company that buys energy from the wholesale market and sells it to you. This is the company you choose actively. There are many electricity providers Denmark, ranging from large established corporations to smaller, digital-first startups.
Your contract is with the electricity provider. They handle customer service, billing, and administrative tasks. In most cases, they will send you a single bill that covers both the raw electricity price and the transport fees owed to the grid operator. They then pass the transport fees on to the grid operator on your behalf.
Setting Up Electricity When Moving In
When you receive the keys to a new rental property or purchased home, you are immediately responsible for the electricity consumption. You should register with a provider as soon as possible, ideally on the takeover date specified in your lease or deed.
If you do not actively choose a provider, you may fall onto a “default” supply obligation. This ensures you have power, but it is often more expensive than a negotiated contract. Furthermore, if no one registers at the address, the grid operator may eventually disconnect the power, leading to reconnection fees.
The Registration Process
Signing up is almost always done online. You will need to provide your full name, the address of the installation, the move-in date, and your CPR number (civil registration number). Most companies also require you to verify your identity using MitID, the Danish digital ID system.
For new arrivals who have not yet received their CPR number or MitID, signing up online can be technically difficult. In these cases, you must call the customer service department of your chosen provider. They can often set up a manual contract using your passport details or a temporary administrative number until your Danish documentation is processed.
Reading the Meter
Upon moving in, you must check the electricity meter. While most modern meters in Denmark are “smart meters” that send data automatically to the central DataHub, taking a manual reading is a crucial safety measure. Photograph the meter reading on the day you get the keys.
Send this reading to your provider or landlord to ensure you are not charged for electricity used by the previous tenant. This establishes a clear baseline for your billing. If there is a dispute later regarding usage, this photo serves as your proof of the meter state at the commencement of your lease.
Understanding Electricity Prices in Denmark
Danish electricity bills are notoriously complex because the actual cost of the energy is only a fraction of the total amount you pay. The majority of the bill consists of taxes, VAT, and transportation fees. Understanding this breakdown helps you realize where your money goes.
The price of raw electricity is determined by the Nord Pool spot market, which covers the Nordic and Baltic regions. Prices change every hour based on supply (wind, solar, hydro) and demand. However, the final price you see on your bill includes several other layers.
| Cost Component | Description | Approximate Share of Bill |
|---|---|---|
| Spot Price | The market price for the raw electricity. Paid to the provider. | 20% – 30% |
| Grid Tariffs | Fees for transporting power through cables. Paid to the grid operator. | 15% – 20% |
| System Tariff | Fee to Energinet for maintaining the overall security of supply. | 5% – 10% |
| Electricity Tax (El-afgift) | State tax levied on consumption. This is a fixed rate per kWh. | 30% – 40% |
| VAT (Moms) | 25% sales tax applied to the total sum of all above components. | 20% (of total) |
The electricity tax (El-afgift) is set by the Danish parliament. It is one of the highest electricity taxes in the world. This tax is applied per kilowatt-hour (kWh) regardless of the market price of the energy itself. Consequently, even if electricity prices drop to zero on the spot market, you still pay a significant amount due to taxes and grid fees.
Grid tariffs also vary depending on the time of day. Many grid operators have introduced “Time-of-Use” tariffs. This means it is significantly more expensive to transport electricity during peak hours (typically 17:00 to 21:00) than during the night. This structure encourages consumers to shift consumption to off-peak hours.
Pricing Models: Fixed vs. Variable
When selecting a contract, you will generally face a choice between two pricing models: Variable Price (Variabel pris) and Fixed Price (Fast pris). Understanding the mechanics of these options is critical for financial planning.
Variable Price (Variabel Pris)
A variable price contract tracks the hourly market rate on the Nord Pool power exchange. The price you pay per kWh changes every hour. When the wind blows and renewable energy production is high, prices drop. During calm, cold days, prices rise.
This model requires you to accept volatility. However, historically, variable pricing has proven to be cheaper over the long term than fixed pricing. It allows you to save money by moving consumption—such as running the dishwasher or washing machine—to times when electricity is cheap, often late at night.
Fixed Price (Fast Pris)
A fixed price contract locks in a specific rate per kWh for a set period, typically 3, 6, or 12 months. This provides budget security, as you know exactly what the raw energy will cost regardless of market fluctuations. You do not need to worry about hourly price spikes.
The downside is that the fixed rate includes a risk premium. The provider charges more to cover the risk they take by guaranteeing the price. Consequently, you usually pay a higher average price for the security of a fixed rate. Additionally, if market prices drop significantly, you remain stuck paying the higher fixed rate until the contract ends.
| Feature | Variable Price | Fixed Price |
|---|---|---|
| Cost Basis | Hourly market spot price | Agreed rate for contract duration |
| Risk | Consumer bears market risk | Provider bears market risk |
| Flexibility | Usually no lock-in period | Often binding for contract period |
| Savings Potential | High (if shifting usage) | Low (paying for stability) |
Billing Methods: Aconto vs. Actual Usage
The billing method is a frequent source of confusion for foreigners in Denmark. There are two primary ways companies bill for electricity: “Aconto” (on account) and monthly arrears based on actual usage.
Aconto Billing
Aconto is the traditional Danish method. The electricity provider estimates your future usage for the coming quarter (three months). They send you a bill in advance based on this estimate. You pay for electricity you have not yet used.
Once the quarter ends, the company checks your actual consumption via the smart meter. On the next bill, they adjust the balance. If you used less than estimated, you receive a credit. If you used more, you pay the difference. This can be frustrating for budgeting, as quarterly bills are large and estimates can be inaccurate.
Monthly Billing (Bagudbetalt)
Many modern providers, such as Velkommen electricity, now offer monthly billing based on actual consumption. With this method, you receive a bill at the beginning of the month for the electricity you actually used in the previous month. This model is generally preferred by expats as it aligns better with monthly salary cycles and eliminates the guesswork of estimated payments.
Payment Channels and Fees
How you pay your bill matters in Denmark. Providers often charge administrative fees depending on the payment method. Sending a paper invoice by mail is the most expensive option, often incurring a fee of 49 DKK or more per bill.
The standard and cheapest way to pay is via Betalingsservice (Direct Debit). You register the bill with your bank, and the amount is deducted automatically on the due date. This usually carries a lower fee or no fee at all. Paying by credit card or MobilePay is becoming more common, but you must check if there are recurring card fees attached to your specific contract.
Green Energy and Certificates
Denmark is a global leader in renewable energy, particularly wind power. On windy days, wind turbines can generate more than 100% of the country’s electricity demand. However, the grid is a mix of all energy sources available at any given moment, including coal or imported gas.
When you choose a “green” electricity plan, the provider guarantees to purchase “Guarantees of Origin” certificates corresponding to your consumption. This ensures that for every kWh you use, a kWh of renewable energy is produced and added to the grid. While the physical electrons entering your home are the same as your neighbor’s, your payment supports renewable producers.
Comparing Providers
The market is crowded with competitors. When looking for the cheapest electricity Denmark has to offer, you must look beyond the introductory offer. Many companies offer very low prices for the first six months to attract new customers, only to raise the subscription fee or administration charges later.
Established players like OK electricity often emphasize customer service and stability. They may have loyalty programs connected to fuel cards or supermarkets. Others, like Modstrøm electricity, focus heavily on energy optimization and green profiles, sometimes offering free energy consultations.
It is worth checking reviews on Trustpilot before signing up. Customer service quality varies greatly. Since electricity is a commodity product—the power is exactly the same regardless of who sells it—service, billing transparency, and app functionality are the main differentiators.
The DataHub and Elpris.dk
The Danish energy sector operates a centralized IT platform called the DataHub. Owned by Energinet (the state-owned enterprise running the overall transmission system), the DataHub stores all meter data and handles the communication between grid operators and electricity suppliers.
As a consumer, you can log into Eloverblik.dk using your MitID. Here, you can see your historical consumption data down to the hour, regardless of which provider you have used in the past. This data is valuable for analyzing your habits and seeing where you can save energy.
To compare current market prices, the Danish Utility Regulator runs a website called Elpris.dk. This is an impartial comparison tool where you can enter your address and estimated consumption to see a list of available offers. It is the most reliable source for comparing contract terms objectively.
Moving Out and Canceling
When you move out of a property, you must inform your electricity provider. This is not done automatically when you change your address in the national register (Folkeregisteret). You must contact the company directly, usually via their self-service portal.
You will need to provide a final move-out date and a forwarding address for the final bill. If you forget to cancel, you remain liable for the consumption at the old address until the new tenant registers or until the landlord takes over. Disputes over move-out readings are common, so always take a photo of the meter on the day you hand back the keys.
Electrical Safety and DIY
While you are responsible for the contract, you are generally not allowed to perform electrical work in your Danish home. The laws regarding DIY electrical work are strict. You may change light bulbs and hang simple pendant lamps if there is an existing outlet, but you cannot install new sockets, change wiring, or mess with the fuse box.
If you experience electrical issues within your home (not a general outage), you must hire an authorized electrician. In a rental property, you should contact your landlord or property manager first, as they are responsible for the fixed installation. If the issue is a general power cut affecting the whole street, you should contact your grid operator (Netselskab), not your commercial provider.
Reduced Electricity Tax
There is a specific tax rule that benefits households using electricity as their primary heat source (e.g., heat pumps or electric radiators). If your home is registered in the BBR (Building and Housing Register) as electrically heated, you are eligible for a significant reduction in the electricity tax for all consumption exceeding 4,000 kWh per year.
This reduction is applied automatically if your provider has the correct data from the BBR. It makes heating a house with electricity much more competitive compared to gas or oil. If you rent a house with electric heating, verify that this reduction appears on your bill. It can save you thousands of kroner annually.
Common Pitfalls for Expats
One common mistake is ignoring the “introductory price” expiration. Some contracts automatically convert to a more expensive product after the first 6 months. Set a reminder to check your contract terms half a year after signing up.
Another issue is the “subscription fee” (abonnement). While the kWh price might be low, a high monthly subscription fee can make the total cost expensive for single people or those with low consumption. If you live in a small apartment, prioritize a low subscription fee over the absolute lowest kWh price.
Finally, be aware of phone sales. You may receive calls from telemarketers selling electricity contracts. These sales pitches can be aggressive and confusing, especially if your Danish is limited. It is generally safer to decline these offers and conduct your own research online, choosing a provider where you can read the terms and conditions in peace.