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Intro OfferGet a 400 DKK discount on your first bill
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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 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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- Other fees 1.85 øre/kWh
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Intro OfferGet a free PS5 controller
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Intro Offer0 DKK in spot supplement and sub. until June 30th
Finding the cheapest electricity provider Denmark has to offer is often one of the first administrative tasks you will face when moving to the country. The Danish energy market is fully liberalized, meaning you are free to choose which company supplies your power. However, the infrastructure that delivers that power is fixed based on your location.
Understanding how to set up a contract, read your bill, and navigate the tax system is essential for managing your monthly expenses. This guide breaks down the technical aspects of the Danish energy market for foreign residents.
The Structure of the Danish Energy Market
The electricity system in Denmark is divided into two distinct entities. You must understand the difference between the grid operator and the electricity provider to manage your service effectively.
The Grid Operator (Netselskab)
The grid operator owns the physical cables, meters, and infrastructure that bring electricity into your home. You cannot choose your grid operator. It is determined solely by your geographical location.
Major grid operators include Radius (Copenhagen area), Cerius, N1, and Konstant. If there is a power outage or a technical fault with your lines, the grid operator is responsible for fixing it. They charge for the transport of electricity, and these fees are non-negotiable.
The Electricity Provider (Elleverandør)
The electricity provider is the commercial company that sells you the energy. This is the entity you choose and sign a contract with. They buy power from the wholesale market and resell it to you.
When you look for electricity in Denmark, you are comparing these commercial providers. They handle your billing and customer service. In most cases, your bill will include costs from both the provider (for the raw energy) and the grid operator (for transport and taxes), collected by the provider on behalf of the grid operator.
Setting Up Electricity When Moving In
In Denmark, the tenant is almost always responsible for the electricity contract. It is rarely included in the rent. You must sign up for electricity personally when you receive the keys to a new apartment or house.
The Signup Process
You should register with a provider as soon as you have your move-in date. If you do not actively choose a provider, you may be placed on a default “obligation to supply” contract, which can be more expensive, or the power may be cut off if the previous tenant closes their account and no new one is opened.
To sign up online, you typically need:
- Your full name and new address.
- Your CPR number (Civil Registration Number).
- MitID (Digital ID) for signing the contract.
- The date you receive the keys (move-in date).
- Bank details for automatic payment (Betalingsservice).
If you have just arrived and do not yet have a CPR number or MitID, you cannot usually sign up online. You must call the electricity provider’s customer service directly. Many providers are accustomed to English-speaking expats and can set up a manual contract while your paperwork is being processed.
Meter Readings
Most modern homes in Denmark have remote-read “smart meters” (Fjernaflæste målere). These meters send consumption data automatically to the grid operator. You generally do not need to manually read the meter when moving in or out, but it is always wise to take a photo of the meter reading on the day you get your keys for your own records.
Understanding Electricity Prices in Denmark
Danish electricity bills are known for being high compared to many other countries. This is largely due to heavy taxation rather than the cost of the energy itself. It is vital to understand that the price you see advertised by a provider is only a small fraction of what you will actually pay.
The total price per kWh (kilowatt-hour) consists of the raw energy price, grid transport tariffs, state taxes, and VAT (moms).
Breakdown of an Electricity Bill
The following table illustrates the typical components of a Danish electricity bill. Percentages are approximate and fluctuate based on current energy prices.
| Component | Description | Approximate Share of Bill |
|---|---|---|
| Spot Price (Raw Energy) | The market price of the electricity itself. This is the only part you can negotiate or change by switching providers. | 20% – 30% |
| Grid Tariffs (Transport) | Fees paid to the grid operator (Netselskab) for maintaining cables and transporting power. Often higher in winter between 17:00 and 21:00. | 15% – 20% |
| State Tax (Elafgift) | A fixed tax levied by the Danish state per kWh consumed. This is uniform across all providers. | 30% – 40% |
| VAT (Moms) | 25% Value Added Tax applied to the total sum of all the above components. | 20% |
When comparing electricity prices Denmark lists on comparison sites, ensure you know if the price shown includes taxes and transport or just the raw energy price. Most marketing highlights only the raw energy price to look cheaper.
The state tax (elafgift) is a significant portion of the cost. However, the government occasionally reduces this tax temporarily during energy crises. Additionally, if your home is heated by electricity (e.g., heat pumps) and registered as such in the BBR register, you may be eligible for a reduced electrical tax on consumption exceeding 4,000 kWh per year.
Pricing Models: Fixed vs. Variable
When selecting a contract, you must choose between a fixed price (Fast pris) and a variable price (Variabel pris / Spotpris). This choice determines how your rate per kWh is calculated.
Variable Price (Variabel Pris)
With a variable price contract, your price per kWh changes hour by hour. It follows the rate on the Nord Pool power exchange.
- How it works: You pay the market price at the specific hour you use the electricity.
- Advantages: Over the long term, this is historically the cheapest option. It allows you to save money by using heavy appliances (washing machines, EV chargers) at night when prices are low.
- Disadvantages: Prices can spike significantly during peak hours (17:00–20:00) or during energy crises. You bear the risk of market volatility.
Fixed Price (Fast Pris)
With a fixed price contract, you lock in a specific rate per kWh for a set period, usually 3, 6, or 12 months.
- How it works: You pay the same rate regardless of when you use the power or what the market is doing.
- Advantages: You know exactly what your energy costs will be. It provides budget security and protects you from sudden price spikes.
- Disadvantages: The fixed rate usually includes a high “risk premium” charged by the provider. You will not benefit when market prices drop. It is generally more expensive than variable pricing over time.
| Feature | Variable Price | Fixed Price |
|---|---|---|
| Price fluctuation | Changes every hour | Locked for contract duration |
| Budget stability | Low | High |
| Long-term cost | Usually lower | Usually higher |
| Best for | Flexible users, EV owners | Risk-averse budgets |
Billing Methods: Aconto vs. Actual Consumption
A major source of confusion for expats is the Danish “Aconto” billing system. It is important to check which billing method a provider uses before signing up.
Aconto Billing
Aconto means “on account” or estimated payment. The provider estimates your usage for the coming quarter (3 months) and bills you in advance.
- You pay for expected usage before you use it.
- Once the period ends, the provider checks your actual meter reading.
- If you used less than estimated, the difference is deducted from your next bill.
- If you used more, you are charged the extra amount on the next bill.
This can result in surprisingly high bills during winter months or when you first move in, as the estimate might be based on the previous tenant’s high consumption.
Monthly / Actual Consumption Billing
Some providers offer monthly billing based on actual consumption (Bagudbetalt).
- You use the electricity first.
- You receive a bill the following month for exactly what you used.
- This is generally preferred by expats as it helps with cash flow and transparency.
Some companies charge a small fee to switch from quarterly aconto to monthly billing.
How to Find the Cheapest Provider
To find the cheapest electricity Denmark has available, you must look beyond the headline price per kWh. The raw price is often similar across variable plans because they all track the Nord Pool exchange. The difference lies in the fees.
Subscription Fees (Abonnement)
Most providers charge a monthly subscription fee. This can range from 0 DKK to 49 DKK or more per month. If you live in a small apartment with low consumption, a high monthly fee will disproportionately increase your average cost per kWh.
Spot Price Surcharge (Tillæg til Spotpris)
Providers make money on variable contracts by adding a small surcharge to the raw spot price. This is listed as “tillæg” or “øre pr. kWh.”
- Cheap: 0.05 DKK (5 øre) per kWh or less.
- Expensive: 0.15 DKK (15 øre) per kWh or more.
Some providers advertise “cost price” (inkøbspris) electricity, meaning they add 0 øre surcharge, but they may have a higher monthly subscription fee.
Introductory Offers
Be cautious of introductory campaigns. Many electricity providers Denmark hosts will offer 0 DKK subscription and 0 DKK surcharge for the first 6 months to attract new customers. After the introductory period, the price often reverts to a standard, more expensive rate. You must remember to check your contract terms and switch again if the price increases significantly.
Common Electricity Providers in Denmark
There are dozens of energy companies in Denmark. Some are large, established utility companies, while others are smaller, digital-first challengers.
Norlys and Andel Energi are among the largest. They are often the default suppliers in their respective regions but operate nationally. They offer stability and robust customer service but may not always have the absolute lowest fees.
Velkommen electricity is a commercial provider known for aggressive marketing and various introductory offers. They frequently run campaigns offering free electricity for a starting period, though customers should read the terms regarding contract length.
OK energy Denmark is a cooperative owned by its customers, well-known for its gas stations. They offer electricity contracts that can be linked to fuel cards and other services.
Other providers focus specifically on green energy profiles or low-cost digital management. When choosing, check Trustpilot reviews to see how other customers rate their billing transparency and customer support.
Green Energy Options
Denmark is a world leader in renewable energy, particularly wind power. However, when you buy “green electricity,” it does not mean that green electrons are directed specifically to your socket. The grid mixes power from all sources (wind, solar, coal, biomass).
When you choose a green contract, the provider purchases “Guarantees of Origin” (certificates) corresponding to your consumption. This ensures that an equivalent amount of renewable energy was produced and added to the grid.
Most standard contracts in Denmark are now green by default. Some providers offer “Climate Plus” options where they plant trees or invest in new climate projects for an extra fee per kWh.
Time-of-Day Tariffs (Transport Fees)
To encourage people to use electricity outside of peak hours, the grid operators (Netselskaber) have implemented time-differentiated tariffs. This affects the transport portion of your bill, regardless of which commercial provider you choose.
Winter Season (October – March):
- Low Load (00:00 – 06:00): Lowest transport fee.
- High Load (06:00 – 17:00): Medium transport fee.
- Peak Load (17:00 – 21:00): Highest transport fee (often 3x the low rate).
- High Load (21:00 – 00:00): Medium transport fee.
Summer Season (April – September):
- Tariffs are generally lower and flatter, though a mild peak may still exist in the evening.
By shifting consumption (laundry, dishwashing) to after 21:00 or before 17:00, you can save money on the transport tariff, even if you have a fixed electricity price.
Moving Out and Canceling
When you move out of a Danish property, you must inform your electricity provider. This is not automatic when you deregister from the CPR register.
- Notice Period: Most providers require notification 7-14 days before you move out.
- Final Reading: While meters are read remotely, the provider needs the specific move-out date to calculate the final bill.
- Address Change: You can usually transfer your current contract to your new address if you wish to stay with the same provider.
If you forget to cancel, you will remain liable for the electricity consumption in the empty apartment (and potentially the new tenant’s usage) until the new tenant registers or the landlord takes over.
Payment Methods
The standard way to pay bills in Denmark is via Betalingsservice (Direct Debit). You register the bill with your bank, and the amount is deducted automatically each month or quarter.
If you do not sign up for Betalingsservice, providers will send a payment slip (Girokort) via email or physical mail. Most providers charge a “handling fee” (gebyr) of 49 DKK or more for manual invoices. Therefore, setting up automatic payment is the most cost-effective method.
What to Do During a Power Outage
If your power goes out, check your fuse box (HFI/HPFI relay) first to see if a fuse has tripped. If the fuses are intact and the whole neighborhood is dark, the issue lies with the grid.
Do not call your commercial electricity provider (e.g., Velkommen or OK). They handle billing, not wires. You must contact your local Grid Operator (Netselskab). You can find their name on your electricity bill. Most grid operators have a map on their website showing current outages and estimated repair times.