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- Type Variable
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- Payment fee 7.5 DKK
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Intro Offer0 DKK sub. and supplement for the rest of the year
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Intro Offer0 DKK subscription for 12 months
Setting up utilities is one of the first administrative tasks you must handle when moving to Denmark. The market for electricity in Denmark is fully liberalized, meaning consumers are free to choose their power supplier. AURA Energi is one of the prominent providers available to residents across the country.
While you can choose who sells you the energy, the infrastructure is fixed. Understanding the distinction between the company that sends you the bill and the company that owns the cables is essential for navigating the Danish system. This guide details the process of establishing service, specifically looking at AURA, and explains the financial components of your energy consumption.
The Difference Between Grid Operators and Electricity Providers
The Danish electricity system is split into two distinct entities. It is vital to understand this separation to know who to contact in different situations. You cannot choose your grid operator, but you must choose your electricity provider.
The Grid Operator (Netselskab)
The grid operator owns the physical cables, the street infrastructure, and the electricity meter in your home. They are responsible for the stability of the grid and the transport of electricity to your address. Your grid operator is determined solely by your geographical location.
If you experience a power outage or a technical fault with your meter, the grid operator is the entity responsible for fixing it. They charge a fee for transporting the electricity, which is collected by your electricity provider and passed on to them.
The Electricity Provider (Elleverandør)
The electricity provider is the commercial company you sign a contract with. Companies like Aura electricity buy power from the international market and sell it to you. They handle customer service, billing, and administrative tasks.
You are free to switch electricity providers. However, regardless of which provider you choose, the quality and stability of the electricity remain exactly the same because it is delivered by the local grid operator.
Moving In: The Tenant’s Responsibility
In Denmark, the tenant is almost always responsible for registering for electricity. This differs from some other countries where utilities might remain in the landlord’s name. You should register for electricity as soon as you have a move-in date.
When you receive the keys to a new apartment or house, you must read the electricity meter immediately. Take a photo of the meter reading for your records. This ensures you only pay for your own consumption and not for the previous tenant’s usage.
If you do not actively choose a provider like AURA, you may be automatically assigned to a “default” supplier, often at a higher rate. It is financially prudent to sign up for a contract proactively before or on the day you move in.
Requirements for Signing Up
To sign up for an electricity contract with AURA or any other Danish provider, you generally need specific identification. The digitization of Danish services means manual paperwork is rare.
CPR Number
The CPR number (Civil Registration Number) is your personal identification number in Denmark. Most energy companies require this number to validate your identity and creditworthiness. You receive this number after registering your residence with the municipality.
MitID
MitID is the digital signature used for online banking and government services. Signing an electricity contract online usually requires authentication via MitID. If you have just arrived and do not yet have MitID, you may need to call the provider’s customer service directly to set up the account manually.
Bank Account and Betalingsservice
You will need a Danish bank account to pay your bills efficiently. Most residents use “Betalingsservice,” a direct debit system. Registering your electricity bill for Betalingsservice is highly recommended to avoid late fees, which can be substantial in Denmark.
Profile of AURA Energi
AURA Energi is a customer-owned energy group based in East Jutland. It was formed through a merger of several smaller local energy companies. Being customer-owned (a cooperative) means the company focuses on value for members rather than purely maximizing profits for external shareholders.
While AURA is historically rooted in East Jutland, they supply electricity to customers all over Denmark. They offer various contract types, including those focused on renewable energy sources. They also engage in installing fiber internet and setting up charging stations for electric vehicles.
Understanding Electricity Prices in Denmark
Electricity bills in Denmark are known for being high compared to other regions. However, the actual cost of the energy is often a small fraction of the total amount. The majority of the bill consists of taxes, VAT, and transport fees.
The price you pay per kWh (kilowatt-hour) fluctuates based on the international energy exchange, Nord Pool. However, the fixed fees added on top of this raw price remain relatively static. Understanding this breakdown helps in analyzing why your bill is high even if you reduce consumption.
Breakdown of an Electricity Bill
| Component | Description | Approximate Share of Bill |
|---|---|---|
| Spot Price (Raw Energy) | The actual market price of the electricity generated. This is the only part the provider competes on. | 20% – 30% |
| Grid Tariffs (Transport) | Fees paid to the local grid operator for using the cables. Often higher during peak hours (17:00–21:00). | 20% – 30% |
| State Taxes (Elafgift) | Government taxes levied on electricity consumption to fund green transition and state budget. | 30% – 40% |
| VAT (Moms) | Standard Danish sales tax of 25% applied to the total sum of the above components. | 20% (of total) |
The electricity prices Denmark faces are heavily influenced by the “Elafgift” (electricity tax). This tax is set by the Danish parliament. While you can shop around for a lower raw energy price, the taxes and transport tariffs are non-negotiable and apply regardless of which provider you choose.
Grid tariffs have increasingly become time-dependent. Many grid operators charge significantly more for transport between 17:00 and 21:00 during the winter months. This is to discourage heavy usage during peak load times. Shifting consumption to night hours can result in savings on the transport portion of the bill.
Fixed vs. Variable Pricing Models
When signing up with AURA or similar providers, you must choose between a fixed price (*Fast pris*) and a variable price (*Variabel pris*). This decision dictates how your price per kWh is calculated.
Variable Price (Variabel Pris)
With a variable price contract, your price changes hour by hour. It follows the spot price on the Nord Pool exchange. Prices are typically lower at night and when there is plenty of wind or solar power available. This model requires you to accept volatility. If the market price spikes, your bill spikes immediately.
Fixed Price (Fast Pris)
A fixed price contract locks your price per kWh for a set period, usually 12 to 36 months. This provides budget security, as you know exactly what the raw energy costs. However, the fixed price usually includes a premium to cover the provider’s risk. If market prices drop significantly, you will be stuck paying the higher fixed rate.
| Feature | Variable Price | Fixed Price |
|---|---|---|
| Cost Stability | Low. Prices change hourly. | High. Price is locked for the contract duration. |
| Average Cost | Historically lower over long periods. | Typically higher due to risk premiums. |
| Flexibility | Usually no lock-in period. | Often binding for 6 months or more. |
| Best For | Those who can shift usage to cheap hours. | Those who need predictable budgets. |
Billing Methods: Aconto vs. Consumption-Based
A major point of confusion for expats is the Danish billing system. Providers use two main methods: Aconto and Consumption-based (Bagudbetalt).
Aconto Billing
Aconto means “on account” or prepayment. The energy company estimates your usage for the coming quarter based on historical data for your address. You pay this estimated amount in advance. At the end of the period, the actual usage is calculated.
If you used less than estimated, the difference is deducted from your next bill. If you used more, you are charged the difference. This can result in surprisingly high bills if the initial estimate was too low, or if energy prices rise unexpectedly.
Consumption-Based Billing
Some providers offer monthly billing based on actual consumption. You pay for exactly what you used in the previous month. This model is becoming more popular as smart meters allow for accurate remote reading. It provides better transparency but requires the provider to support monthly invoicing.
Green Energy and Certificates
Denmark is a leader in renewable energy, particularly wind power. When you select a “green” electricity product from AURA, you are purchasing Guarantees of Origin. These certificates ensure that an amount of renewable energy equivalent to your consumption is produced and added to the grid.
Physically, the electricity coming out of your socket is a mix of all sources feeding into the grid (wind, solar, coal, biomass, imports). It is impossible to direct specific electrons to a specific house. However, choosing a green plan supports the financial viability of renewable energy producers.
Comparing AURA with Other Providers
The Danish market has many competitors. While AURA is a solid, established cooperative, other companies operate with different business models. Some focus on introductory offers, while others focus on subscription-based models.
For example, Modstrøm electricity is known for aggressive marketing and offers that include energy-saving advice and products. They often use introductory rates that change after a set period. It is important to read the terms regarding what happens when the introductory offer expires.
Another competitor is Velkommen electricity. Like many modern providers, they offer variable rate plans and focus on digital customer experiences. When comparing providers, look closely at the monthly subscription fee (*abonnement*) and any additional administration fees.
The Role of Elpris.dk
The Danish Energy Agency operates a comparison website called Elpris.dk. This tool allows consumers to compare current electricity products objectively. You enter your postal code and estimated annual consumption to see a list of available offers.
When using comparison sites, be aware of “introductory prices.” A provider might offer a very low price per kWh for the first six months, after which the price reverts to a standard, higher rate. Always check the “Mindstepris” (minimum price over six months) to understand the true commitment.
Payment and Late Fees
Danish companies are strict regarding payment deadlines. If you miss a payment date for your electricity bill, you will receive a reminder (*rykker*). This reminder usually includes a fee of 100 DKK. If you fail to pay the reminder, further fees are added, and the case may be sent to debt collection (*inkasso*).
To avoid this, sign up for Betalingsservice immediately. This grants the provider permission to withdraw the amount due directly from your bank account on the due date. You still receive a statement explaining the charges before the money is withdrawn.
Electric Heating and Tax Reductions
If your home is heated by electricity (e.g., a heat pump or electric radiators) and is registered as such in the BBR (Building and Dwelling Register), you are eligible for a tax reduction. The standard electricity tax is significantly reduced for all consumption exceeding 4,000 kWh per year.
This reduction is applied automatically if your provider has the correct information. If you move into a house with electric heating, verify that your provider is aware of this status so you receive the reduced rate on the consumption above the threshold. This makes heating a house with electricity much more competitive compared to gas or district heating.
Canceling or Moving Out
When you move out of a property, you must inform your electricity provider. This is not done automatically when you change your address at the municipality. You should contact AURA or your current provider with your move-out date and your new address.
You will be asked to provide a final meter reading on the day you hand over the keys. If you forget to cancel your contract, you remain liable for the electricity consumption at the old address until a new tenant registers or you officially terminate the agreement.
Most contracts have a short notice period, often one month to the end of a month. However, if you are on a fixed-price contract, there may be a fee for early termination. Variable contracts generally offer more flexibility for cancellation.
Customer Service for Non-Danish Speakers
Most major utility companies in Denmark, including AURA, have customer service representatives who speak English. However, the bills and online self-service portals are frequently in Danish. Learning key terms is helpful for managing your account.
- Forbrug: Consumption
- Aftale: Agreement/Contract
- Regning: Bill/Invoice
- Betalingsdato: Due date
- Moms: VAT
- Afgifter: Taxes/Duties
If you receive a bill that you do not understand, contact customer support immediately. It is better to clarify a charge than to ignore it and risk late payment fees.
Troubleshooting Power Outages
If the power goes out, your first step should be to check your fuse box. If the fuses are intact and the safety switch has not tripped, the issue is likely with the grid. Do not call AURA or your commercial provider for outages.
Instead, verify the status of the grid on the website of your local grid operator (*Netselskab*). They usually have a map showing current outages and estimated repair times. If the outage is not listed, you can call the grid operator’s emergency number. This number is often found on your electricity bill or can be located by searching for your address on the grid operator’s website.
Summary of Steps for New Expats
To successfully set up power with AURA or another provider, follow this logical sequence:
- Secure Housing: Sign your lease and get a move-in date.
- Choose a Provider: Research AURA and electricity providers Denmark offers to find a plan that suits your risk tolerance (fixed vs. variable).
- Register: Sign up online using your CPR and MitID. If you lack these, call them.
- Read the Meter: On move-in day, photograph the meter reading.
- Set up Payment: Register the bill for Betalingsservice via your Danish bank.
- Monitor: Keep an eye on your consumption and adjust your habits if you are on a variable plan.