Cheap Energy

Cheap Energy

Variabel

3.0/ 5

Updated: Mar 13, 2026 i

Data Source

Source: Supplier's own website

Date checked: Mar 13, 2026

29 øre/kWh supplement

Subscription: 29 DKK

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• Billing Postpaid
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Cheap Energy is a specific electricity provider operating within the competitive market for electricity in Denmark. The company positions itself as a low-cost alternative to traditional energy giants. They focus on minimizing administrative overhead to offer lower rates. This approach appeals to consumers who prioritize price over extensive customer service or additional perks.

The Danish energy market is fully liberalized. This means consumers are free to choose their electricity supplier. You are not tied to a specific company based on your location. However, the physical infrastructure is managed differently. It is important to understand the distinction between the company that sells you power and the company that delivers it.

Difference Between Grid Operator and Electricity Provider

Two distinct entities handle your power supply. You must understand the difference to interpret your bills and service agreements correctly.

The Grid Operator (Netselskab)
The grid operator owns the physical cables, meters, and infrastructure. They are responsible for the maintenance of the grid and the stability of the power supply. You cannot choose your grid operator. They are determined strictly by your geographical location. If you experience a power outage, the grid operator is the entity responsible for fixing it. They charge for the transport of electricity through their cables.

The Electricity Provider (Elleverandør)
The electricity provider is the commercial entity you sign a contract with. Cheap Energy Denmark is an example of such a provider. They buy electricity from the wholesale market and sell it to you. They handle customer service and billing for the electricity consumption. In most cases, they also collect the fees on behalf of the grid operator, providing you with a single consolidated bill.

Setting Up Electricity as an Expat

Setting up electricity is one of the first administrative tasks when moving into a new home. The responsibility almost always lies with the tenant or the new owner. You should not assume the landlord handles this for you.

When to Sign Up

You should register for an electricity agreement as soon as you have your move-in date. The ideal time is a few days before you receive the keys. If you do not actively choose a provider, you will still receive power. However, you will be placed on a default supply obligation (leveringspligt). These default contracts are often more expensive than competitive market offers.

Requirements for Registration

To sign up with a provider like Cheap Energy, you generally need specific identification.

• CPR Number: The Danish Civil Registration Number is mandatory for setting up most utility contracts.
• MitID: Digital verification is required to sign contracts online.
• Address: You must provide the official address as registered in the Danish address system (DAR).
• Meter Number: While often located automatically via your address, having your meter number (aftagenummer) ensures the correct setup. This is an 18-digit number found on the physical meter or previous bills.

If you have not yet received your CPR number, some companies allow manual registration via phone or email. You will need to provide passport details and proof of address. This manual process is becoming less common as automation increases.

Pricing Models: Fixed vs. Variable

Danish electricity contracts generally fall into two categories. Understanding the difference is vital for managing your monthly budget.

Variable Price (Variabel Pris)

A variable price contract tracks the market price of electricity. The price changes hour by hour based on supply and demand on the Nord Pool power exchange.

• Pros: Historically cheaper over the long term. You can save money by using appliances during off-peak hours (usually at night).
• Cons: Prices can spike significantly during energy crises or periods of low wind and high demand.
• Suitability: Best for those who can tolerate fluctuation and want to access the lowest possible market rates.

Fixed Price (Fast Pris)

A fixed price contract locks your electricity rate for a set period, typically 3, 6, or 12 months.

• Pros: Budget stability. You know exactly what each kWh will cost regardless of market volatility.
• Cons: The price per kWh is usually higher than the average variable price because the provider adds a risk premium. You do not benefit when market prices drop.
• Suitability: Best for those who prioritize predictability and want to avoid the risk of sudden price increases.

Cheap Energy primarily focuses on variable pricing models. They offer electricity at the spot price plus a small surcharge.

Understanding Electricity Prices in Denmark

The cost of electricity in Denmark is among the highest in Europe. However, the actual cost of the energy itself is only a fraction of the total bill. Taxes and fees make up the majority of the expense.

When you look at electricity prices Denmark, it is essential to break down the components.

Breakdown of an Electricity Bill

The following table illustrates the typical components of a Danish electricity bill.

Grid Tariffs and Time-of-Use

Grid tariffs are not static. Most grid operators in Denmark utilize a “Time-of-Use” model. This means the cost to transport electricity varies depending on the time of day.

• Low Load (Night): Transport is cheapest between midnight and 6:00 AM.
• High Load (Evening): Transport is most expensive between 5:00 PM and 9:00 PM.

This tariff structure encourages consumers to shift consumption away from peak cooking and lighting hours. Even if you have a flat-rate electricity contract, the underlying grid tariffs may still vary, though this depends on how your specific contract bundles these costs.

Billing Methods and Aconto

Billing practices in Denmark can be confusing for newcomers. The terminology and payment structures differ from many other countries.

The Aconto System

Many Danish utility companies use “Aconto” billing. This means you pay in advance based on estimated consumption.

1. Estimation: The provider estimates your usage for the coming quarter based on historical data for your address.
2. Payment: You receive a bill for this estimated amount.
3. Adjustment: Once the actual usage data is received from the smart meter, the difference is calculated. If you used less, you get a credit on the next bill. If you used more, you pay the difference.

Some providers, including newer digital-first companies, offer monthly billing based on actual consumption. This is often preferred by expats as it avoids large quarterly bills and complex reconciliations. You should check if Cheap Energy offers “bagudbetalt” (paid in arrears) or “aconto” (paid in advance).

Payment Channels

• Betalingsservice (Direct Debit): This is the standard method. You register your bill with your bank, and it is paid automatically. This avoids late fees.
• MobilePay: Some providers accept payment via the MobilePay app.
• Giro Card: You can pay manually via online banking using the payment ID on the bill. This often incurs a manual handling fee.

The Role of Smart Meters

Denmark has completed a nationwide rollout of smart meters (fjernaflæste målere). Every household is equipped with a digital meter that sends consumption data directly to a central database.

The DataHub

All electricity data in Denmark is collected in the DataHub, managed by Energinet (the state-owned enterprise owning the overall transmission system).

• No Manual Readings: You do not need to read your meter manually or send numbers to your provider. It happens automatically.
• Hourly Data: The meter records usage on an hourly basis. This enables the variable spot pricing models where you pay the specific price for the hour you used the power.
• eloverblik.dk: You can log in to the national portal eloverblik.dk with your MitID to see your raw data, regardless of which provider you currently use.

Moving House and Electricity Contracts

When you move within Denmark, your electricity contract does not automatically follow you. You must take active steps to ensure supply at your new address and close the account at your old one.

Moving Out

You must inform your electricity provider of your move-out date. This is usually done via their self-service website. You will need to provide a forwarding address for the final bill. The smart meter will be read remotely on the date you specify. If you forget to cancel, you are liable for the consumption until the new tenant registers or you officially end the contract.

Moving In

You can choose to register your existing provider at your new address or switch to a new one. If you are happy with Cheap Energy, you simply log in and register the new address and move-in date. If you wish to switch, you sign up with the new provider, and they handle the notification to the DataHub.

Green Energy in Denmark

Sustainability is a major focus in the Danish energy sector. A significant portion of the electricity in the grid comes from renewable sources like wind and solar power.

The Mix in the Socket

Physically, the electricity coming out of your socket is a mix of all energy produced and imported at that moment. You cannot physically separate “green” electrons from “black” electrons. When a provider sells “green electricity,” they purchase Certificates of Origin (Guarantees of Origin). These certificates ensure that an equivalent amount of renewable energy was produced and added to the grid to match your consumption.

Cheap Energy and Sustainability

Discount providers often focus on price first. However, the general Danish grid is highly green by default. Even without a specific “green upgrade” on your contract, a large percentage of your power is renewable. Some budget providers offer a specific green add-on for a small monthly fee, which purchases the certificates on your behalf.

Customer Service Expectations

Low-cost providers like Cheap Energy operate with slim margins. This often impacts the level of customer service available.

Digital First

To keep costs down, budget providers rely heavily on self-service.

• Online Portals: You are expected to handle address changes, billing questions, and consumption monitoring via a website or app.
• Limited Phone Support: Phone lines may have limited opening hours or long wait times.
• Email Communication: Email is often the primary channel for support.

Language Barriers

While most Danes speak English, the self-service portals and automated emails from smaller utility companies are sometimes only in Danish. You may need to use browser translation tools to navigate the “Min Side” (My Page) customer area. Larger, more traditional companies might offer dedicated English interfaces, but this is less common among the discount brands.

Comparing Providers

Before committing to a contract, it is wise to compare electricity providers Denmark offers.

Key Comparison Factors

1. Subscription Fee (Abonnement): A monthly fixed fee paid to the provider. Discount providers often keep this low (e.g., 0 to 29 DKK).
2. Spot Price Surcharge (Tillæg): The amount added on top of the raw market price per kWh. This is how the provider makes money on variable contracts.
3. Payment Fees: Check if there are fees for using specific payment methods. Some companies charge extra if you do not use Betalingsservice.
4. Introductory Offers: Be aware of “introductory prices” that expire after 3 or 6 months. The price may jump significantly after the initial period.

Right of Withdrawal

In Denmark, consumers have a 14-day right of withdrawal (fortrydelsesret) for online purchases, including electricity contracts. If you sign up and change your mind within two weeks, you can cancel the contract without penalty.

Technical Grid Areas: DK1 vs. DK2

Denmark is divided into two pricing zones for electricity.

• DK1 (West Denmark): Includes Jutland and Funen. Connected to the German and Norwegian grids.
• DK2 (East Denmark): Includes Zealand (Copenhagen) and the islands. Connected to the Swedish and German grids.

Prices in these two zones can differ. Sometimes wind is blowing in the West but not the East, causing price divergence. When looking for the cheapest electricity Denmark has available, ensure you are looking at rates for your specific zone. Your postal code determines your zone automatically.

What Happens If You Don’t Pay?

Failure to pay electricity bills has serious consequences in Denmark. The process is regulated but strict.

1. Reminders: You will receive payment reminders, usually with added fees (rykkergebyr).
2. Debt Collection: If unpaid, the debt is sent to a collection agency (inkasso), incurring significant additional costs.
3. Disconnection: Ultimately, the provider can request the grid operator to cut the power supply. This is a last resort but does happen. Reconnection involves paying all debts plus a substantial reconnection fee.

Changing Providers

Switching electricity providers in Denmark is simple and free of charge, provided you are not in a fixed-term contract.

• No Interruption: The power is never cut off during a switch. It is purely an administrative change.
• Automatic Cancellation: When you sign up with a new provider, they automatically cancel your contract with the old provider. You do not need to contact the old company yourself.
• DataHub Handling: The switch is processed centrally via the DataHub.

If you are on a variable contract, you can usually switch with one month’s notice, effective from the first of the coming month. Fixed-price contracts may have a termination fee if you break them early. Always check the terms and conditions regarding the binding period (bindingsperiode). The maximum binding period for consumers in Denmark is six months.