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Setting up electricity in Denmark is one of the first administrative tasks you must complete when moving into a new home. The Danish energy market is liberalized, meaning consumers are free to choose their own supplier. However, the infrastructure is fixed, and specific rules apply to how you are billed and connected. Understanding these mechanisms is essential for expats to avoid unexpected fees or temporary power cuts.
Electricity in Denmark
Not sure where to start? The Danish electricity market and pricing structure can be a lot. Don’t worry – we’ve got you covered. Explore our beginner-friendly guides below to understand the market, check the latest prices, and find the cheapest provider for your home.
Prices & Guides
Electricity Providers
The Structure of the Danish Energy Market
The Danish electricity system is divided into two distinct entities. It is crucial to understand the difference between the company that owns the cables and the company that sells you the energy. You cannot choose your grid operator, but you must choose your electricity provider.
The Grid Operator (Netselskab)
The Netselskab is the company responsible for the physical infrastructure. They own the cables, the meters, and the substations that deliver power to your house or apartment. They are monopolies in their specific geographic regions.
If you live in Copenhagen, your grid operator is likely Radius. If you live in parts of Jutland, it might be N1 or Konstant. You do not sign a contract with the grid operator directly. However, they charge fees for transporting the electricity, which appear on your bill. If you experience a power outage, the grid operator is the entity responsible for fixing the lines.
The Electricity Provider (Elleverandør)
The Elleverandør is the commercial company you buy electricity from. There are many electricity providers Denmark has to offer, ranging from large established companies to small startups.
These companies buy power from the Nordic energy exchange (Nord Pool) and resell it to you. They handle customer service and billing. When you sign up for electricity, you contact an electricity provider, not the grid operator. The provider then notifies the grid operator that you are the new payer for that specific meter.
Moving In: Your Responsibilities
In Denmark, the tenant is almost always responsible for setting up the electricity contract. Do not assume your landlord has done this for you. If you move into a rental property, you must register for electricity from the day you receive the keys.
The Registration Timeline
You should ideally register a few days before your move-in date. If you forget, you usually have a short grace period after receiving the keys to register retroactively. If no one registers for the meter at a specific address, the grid operator may cut the power. Reconnection fees are expensive and are charged to the tenant.
Reading the Meter
When you take over an apartment, you must read the electricity meter. Most modern meters in Denmark are remote-read (smart meters), but you should still take a photo of the meter reading on the day you get the keys. This acts as proof of your starting consumption. Provide this reading to your chosen electricity provider if they request it.
Requirements for Signing Up
To sign a contract with a Danish electricity provider, you generally need specific identification and banking details. The process is digital and usually done via the provider’s website.
CPR Number
You need a Danish CPR number (Civil Registration Number) to sign a standard electricity contract. The provider uses this to perform a credit check and register you in the national data hub. If you have just arrived and do not have a CPR number yet, some providers may allow you to sign up by calling their customer service directly, though this is becoming rarer.
MitID
Online self-service platforms require MitID for secure login. This is the standard digital signature in Denmark. You use MitID to sign the contract and to log in later to view your bills and consumption.
Payment Methods
The most common way to pay bills in Denmark is through Betalingsservice (Direct Debit). You connect the bill to your Danish bank account, and the amount is deducted automatically each month or quarter. If you do not set up Betalingsservice, you will receive a bill via email or e-Boks (digital post), often with an added administration fee for manual payment.
Understanding Electricity Prices in Denmark
Danish electricity prices are among the highest in Europe. However, the high cost is not due to the price of the raw energy itself. The majority of the bill consists of government taxes, VAT, and transport fees. It is vital to understand that when you see a low “price per kWh” advertised, it often only refers to the raw energy price, not the total cost.
The total price you pay per kilowatt-hour (kWh) is a sum of four components:
- Spot Price: The market price of the electricity.
- Grid Tariffs: Payment to the grid operator for transport.
- State Taxes: Energy tax (El-afgift) paid to the Danish state.
- VAT (Moms): A 25% tax on the total sum of the above.
Breakdown of an Electricity Bill
The following table illustrates how a typical Danish electricity bill is composed. Percentages are approximate as market prices fluctuate.
| Component | Danish Term | Description | Approx. Share of Bill |
|---|---|---|---|
| Raw Energy | Ren elpris / Spotpris | The actual electricity you use. Paid to the provider. | 15% – 25% |
| Transport | Transport / Nettarif | Fee for using cables and grid maintenance. Paid to grid operator via provider. | 15% – 25% |
| State Tax | El-afgift | Government tax on energy consumption. | 35% – 45% |
| VAT | Moms | 25% sales tax applied to all the above categories. | 20% |
When comparing electricity prices Denmark lists on comparison sites, ensure you are looking at the total price or understanding which parts are excluded. You can only save money on the “Raw Energy” portion and the subscription fee. Taxes and transport tariffs are mandatory and identical regardless of which provider you choose.
Pricing Models: Fixed vs. Variable
When choosing an electricity contract, you must decide between a fixed price and a variable price. This choice determines how your price per kWh is calculated.
Variable Price (Variabel Pris)
A variable price contract follows the market rate on the Nord Pool power exchange. The price changes hour by hour. Electricity is typically cheapest at night when wind energy production is high and demand is low. It is most expensive between 17:00 and 20:00 when families are cooking and using appliances.
With a variable contract, you can save money by shifting your consumption to cheap hours. You pay the actual market price plus a small surcharge (tillæg) to the provider.
Fixed Price (Fast Pris)
A fixed price contract locks your price per kWh for a set period, usually 3, 6, or 12 months. This provides security because you know exactly what the raw energy will cost regardless of market fluctuations. However, the fixed price is usually set higher than the average variable price to cover the provider’s risk.
Comparison of Pricing Models
| Feature | Variable Price (Variabel) | Fixed Price (Fast) |
|---|---|---|
| Price fluctuation | Changes every hour based on supply/demand. | Locked for the contract duration. |
| Risk | You pay more if the market spikes. | You pay a premium for security. |
| Savings potential | High, if you use power at night. | Low, you cannot optimize consumption. |
| Transparency | Requires an app to track hourly prices. | Simple, one rate around the clock. |
Billing Methods: Aconto vs. Bagudbetalt
The billing method is a frequent source of confusion for foreigners in Denmark. Providers use two main systems: Aconto (on account) and Bagudbetalt (paid in arrears).
Aconto Billing
This is the traditional Danish model. The electricity provider estimates your future consumption for the next three months. You pay this estimated amount in advance.
Once the period is over, the provider checks your actual consumption. If you used less than estimated, the excess money is deducted from your next bill. If you used more, you are charged the difference. This can be frustrating because the initial bills may be high, and you are effectively lending money to the energy company.
Paid in Arrears (Bagudbetalt)
Newer, digital-first providers often bill monthly in arrears. You pay for exactly what you used in the previous month. This model is generally preferred by expats as it is transparent and easier to budget for. Companies like Velkommen electricity or similar modern providers often offer monthly billing options, though you must check the specific terms of your contract.
Grid Tariffs and Time-of-Day Pricing
Even if you have a fixed electricity price, the cost of transporting the electricity varies depending on the time of day. This is known as “Tarifmodel 3.0”.
Grid operators charge higher transport fees during peak load hours to discourage consumption when the grid is stressed.
- Low Load (Night): Lowest transport fee.
- High Load (Daytime): Moderate transport fee.
- Peak Load (17:00 – 21:00): Highest transport fee.
During the winter months (October to March), the Peak Load tariff is significantly higher. Running a dryer or dishwasher at 18:00 in winter is much more expensive than running it at 22:00, primarily due to the transport fee, not just the raw energy price.
Subscription Fees
Most electricity providers charge a monthly subscription fee (abonnement). This is a fixed administrative cost for handling your account.
Some providers advertise “0 kr subscription,” but they may charge a higher surcharge on the electricity price. Others charge a high subscription fee (e.g., 49 DKK/month) but offer the electricity at the pure market price.
If you have low electricity consumption (e.g., a single person in a small apartment), a high subscription fee will disproportionately increase your average cost per kWh. If you have a large family or an electric car, the subscription fee matters less than the price per kWh.
Green Energy and Certificates
Denmark produces a large amount of energy from wind turbines. However, the electricity in the grid is a mix of wind, solar, biomass, coal, and imported gas. You cannot physically separate “green” electrons from “black” electrons in the cables.
When you buy a “Green Energy” product, the provider purchases “Guarantees of Origin” certificates. This ensures that an amount of renewable energy equivalent to your consumption was produced and added to the grid. It supports renewable energy producers but does not change the physical electricity entering your home.
Changing Providers
You can switch electricity providers freely in Denmark. There is no physical work involved; no cables are changed, and the power is not cut off during the switch.
Lock-in Periods (Bindingsperiode)
While you can switch, you must be aware of lock-in periods. By law, a lock-in period for a consumer contract cannot exceed six months. Many introductory offers have a six-month lock-in. If you break the contract early, you may be charged a fee.
The Switching Process
To switch, you simply sign up with a new provider. You give them your CPR number and address. They will contact your old provider and cancel your previous contract. You do not need to contact the old provider yourself. The switch usually takes effect from the first day of the next month, provided there is a minimum 14-day processing window.
Introductory Offers and Traps
The Danish electricity market is highly competitive. Providers often use aggressive telemarketing and door-to-door sales. They may offer “Intro-tilbud” (introductory offers) with very low prices for the first 6 months.
After the introductory period ends, the price often automatically shifts to a much more expensive standard product. It is essential to read the fine print regarding what happens after the discount period. Many expats find themselves paying above-market rates because they forgot to switch again after the intro period expired.
Finding the Cheapest Option
To find the cheapest electricity Denmark has available, you must look at your consumption pattern.
For a standard household, a variable price contract with monthly billing and a low subscription fee is often the most economical choice over the long term. It allows you to benefit from the frequent periods of very low (or even negative) raw electricity prices that occur in Denmark due to high wind output.
The “Elpris” App
To monitor prices, many Danes use the app “Min Strøm” or simply “Elpriser”. These apps pull data from Nord Pool and display the price per kWh for the coming hours.
The prices for the next day are released around 13:00 CET. This allows you to plan when to run energy-intensive appliances like washing machines or charge an electric vehicle. The apps can also display the grid tariffs specific to your municipality, giving you a true “total price” view.
Moving Out and Deregistration
When you move out of a Danish property, you must actively deregister or move your electricity contract. If you fail to do this, you remain liable for the consumption at the old address until a new tenant registers.
You should inform your electricity provider of your move-out date and your new address. They will ask for a final meter reading on the day you hand over the keys. The final bill (slutopgørelse) will be sent to your new address or digital post. If you are moving to a new address in Denmark, you can usually transfer your current contract to the new home.
Default Supplier (Leveringspligt)
If you move into an apartment and do not choose an electricity provider, you will eventually receive a letter from the “default supplier” in your area. This is a regulated obligation to ensure everyone has power.
The default supplier is usually the commercial arm of the local grid operator. The prices on these default contracts are often higher than what you can find on the open market. It is always financially beneficial to actively choose a provider rather than waiting to be assigned one by default.
Troubleshooting Power Outages
If your power goes out, check your fuse box (HFI/HPFI relay) first. If the fuses are intact, the issue is likely with the grid.
Do not call your electricity provider (the company sending you the bill). They cannot fix technical grid issues. Instead, check the website of your local grid operator (Netselskab). They usually have a live map of current power outages and estimated repair times. Major operators like Radius (Zealand) and N1 (Jutland) have dedicated outage maps and SMS alert services you can subscribe to.
Summary of Key Terms
- kWh (Kilowatt-time): The unit of measurement for your consumption.
- Moms: VAT (25%).
- Afgift: Tax.
- Netselskab: Grid operator (cables).
- Elleverandør: Electricity provider (sales).
- Aconto: Payment in advance.
- Opgørelse: Settlement/Statement.
- Gebyr: Fee.
The market requires attention to the contract type and billing method. By understanding the distinction between the grid owner and the electricity seller, and by keeping an eye on the variable spot prices, you can manage your energy costs effectively while living in Denmark. Companies like Modstrøm electricity and others offer various tools to help track this, but the responsibility ultimately lies with the consumer to understand their bill.