Velkommen

Velkommen

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3.0/ 5

Updated: Mar 13, 2026 i

Data Source

Source: Supplier's own website

Date checked: Mar 13, 2026

19 øre/kWh supplement

Subscription: 0 DKK

• Type Variable
• Billing Prepaid
• Commitment None
• Other fees 3.75 øre/kWh
• Payment fee 9.75 DKK
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Moving to a new country involves various bureaucratic hurdles, and setting up utilities is one of the first tasks you will face. When you move into a new apartment or house, establishing a connection for electricity in Denmark is a priority. Velkommen is one of the many energy companies operating in the liberalized Danish market. Understanding how providers like Velkommen function, how they differ from grid operators, and how billing works is essential for managing your monthly expenses.

The Danish electricity market allows consumers to choose their own electricity supplier. This freedom of choice applies to both renters and homeowners. While the physical cables and infrastructure are managed by regional monopolies, the actual power you consume is sold by commercial companies. This distinction is vital for understanding your bill and knowing who to contact in different situations.

Velkommen as a Provider

Velkommen is a Danish energy provider that frequently markets itself towards new customers with introductory offers. They often provide variable rate contracts that follow the market price closely. Like many modern providers, they offer digital self-service platforms where you can track your consumption.

When evaluating Velkommen, it is important to look at the subscription fee (abonnement). Most providers charge a monthly administrative fee on top of the price per kWh. For some providers, this fee is low, while others charge a higher monthly rate but a lower markup on the electricity.

Velkommen often highlights green energy in their marketing. In the Danish grid, electricity is a mix of wind, solar, biomass, and coal. When you buy “green” electricity, the provider purchases “Guarantees of Origin” certificates corresponding to your consumption. This ensures that renewable energy was produced, though the actual electrons entering your socket are a mix of whatever is currently on the grid.

Billing Methods: Aconto vs. Consumption-Based

A major point of frustration for foreigners in Denmark is the Aconto billing system. Many traditional electricity providers Denmark use this method.

Aconto Billing
In an Aconto system, the provider estimates your future usage for the next three months. You pay this estimated amount in advance. On the next bill, they compare your actual usage against the estimate. If you used less, you get a credit. If you used more, you pay the difference plus the next quarter’s estimate. This can result in surprisingly high bills during winter or when you first move in, as the estimate might be based on the previous tenant’s high consumption.

Consumption-Based Billing (Bagudbetalt)
Some modern providers and specific contracts offer monthly billing based on actual consumption. This means you pay for exactly what you used in the previous month. This is generally preferred by expats as it is easier to understand and manage cash flow. When signing up with Velkommen or any other provider, check if the payment terms are aconto (quarterly in advance) or bagudbetalt (monthly in arrears).

Comparing Providers

There are many competitors in the Danish market. Besides Velkommen, you might encounter companies like OK electricity, which is a cooperative owned by its customers, or larger entities like Norlys and Andel Energi.

When comparing providers, look at three specific numbers:

1. Subscription (Abonnement): The fixed monthly fee paid to the provider.
2. Spot Price Surcharge (Tillæg til spotpris): The small amount added to the raw market price per kWh to cover trading costs and profit.
3. Payment Fees: Some companies charge extra if you pay via a specific method (e.g., Giro card) rather than setting up an automatic payment (Betalingsservice).

Some providers, such as Modstrøm electricity, offer products that focus heavily on energy savings and climate-friendly solutions. Others focus strictly on being the cheapest option with no frills. It is worth checking comparison portals to see the current rates, as introductory offers change frequently.

The Difference Between Grid Operators and Electricity Providers

A common source of confusion for expats is the split between the company that owns the cables and the company that sends the bill. In Denmark, these are two distinct entities with different responsibilities.

Netselskab (Grid Operator)
The Netselskab owns and maintains the physical infrastructure. This includes the cables, the street transformers, and the electricity meter inside your home. You cannot choose your grid operator. It is determined strictly by your geographical location. For example, if you live in Copenhagen, your grid operator is likely Radius. If you live in parts of Jutland, it might be N1. They are responsible for fixing power outages and reading your meter remotely.

Elleverandør (Electricity Provider)
The Elleverandør is the commercial trading company you sign a contract with. Companies like Velkommen, OK, or Andel Energi fall into this category. They buy electricity from the wholesale market and sell it to you. They are also responsible for collecting taxes and grid fees on behalf of the state and the grid operator. You are free to change your electricity provider to find better rates or customer service.

When to Sign Up for Electricity

You should register for an electricity agreement as soon as you have the lease or purchase contract and a move-in date. In Denmark, the tenant is almost always responsible for the electricity contract. It is rarely included in the rent.

If you do not actively choose a provider before moving in, you still receive power. However, you will be placed on a “default supply” obligation (leveringspligt). This is often more expensive than a negotiated commercial contract. To avoid this, you should sign up with a provider like Velkommen electricity or a similar competitor roughly 2 to 4 weeks before you get the keys.

If you forget to sign up beforehand, you can still register on the day you move in. Most companies allow you to backdate the registration by a few days, provided the meter reading is consistent.

Requirements for Signing Up

To sign up for an electricity contract in Denmark, you generally need the following:

• CPR Number: Your Danish civil registration number is required for credit checks and tax reporting.
• Address: The exact official address listed in the CPR registry.
• Move-in Date: The date you become liable for the meter.
• MitID: Most online self-service platforms require MitID for secure login and contract signing.

If you have just arrived and do not have a CPR number or MitID yet, signing up online can be difficult. In these cases, you must often call the electricity provider’s customer service line directly. They can sometimes set up a temporary account or guide you through a manual registration process using your passport details, though policies vary by company.

Understanding Electricity Prices in Denmark

Danish electricity bills are among the highest in Europe due to a heavy tax burden. It is crucial to understand that the price you see advertised by a provider is often only a fraction of the total cost per kilowatt-hour (kWh). The final price is composed of the raw energy price, transport fees, and state taxes.

Electricity prices Denmark fluctuate based on weather, demand, and global fuel costs. However, the taxes and grid fees remain relatively stable or follow a set schedule.

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

The “Raw Energy Price” is the only part of the bill where competition exists. This is the portion companies like Velkommen compete on. The grid tariffs and state taxes are mandated by law and will be identical regardless of which provider you choose. Therefore, when comparing prices, you are effectively comparing only about one-third of your total invoice.

Time-of-Use Tariffs

Grid operators in Denmark use a tariff system known as “Tarifmodel 3.0”. This means the cost to transport electricity through the cables changes depending on the time of day.

• Low Load (Night): Usually from 00:00 to 06:00. Transport is cheapest.
• High Load (Day): Usually from 06:00 to 17:00 and 21:00 to 00:00. Transport costs are moderate.
• Peak Load (Cooking Time): From 17:00 to 21:00. Transport costs are significantly higher.

During the winter months (October to March), these peak load tariffs are even higher to discourage heavy usage when the grid is under the most stress. Running a dishwasher or washing machine at 18:00 in January is significantly more expensive than running it at 23:00, not just because of the spot price of energy, but because of the transport fee.

Fixed vs. Variable Pricing

When choosing a contract with a provider, you will encounter two main pricing models: Variabel pris (Variable price) and Fast pris (Fixed price). Understanding the difference is critical for budgeting.

Variable Price (Variabel Pris)
With a variable price contract, your price per kWh changes hour by hour. It follows the spot price on the Nord Pool power exchange.

• Pros: Over the long term, this has historically been the cheapest option. You can save money by using appliances at night or when wind energy production is high.
• Cons: You are exposed to market spikes. If energy prices soar due to a geopolitical crisis or extreme weather, your bill increases immediately.
• Suitability: Best for consumers who can shift their consumption (e.g., charging an EV at night) and tolerate fluctuating bills.

Fixed Price (Fast Pris)
With a fixed price contract, you lock in a specific rate per kWh for a set period, typically 12 to 36 months.

• Pros: You know exactly what the raw energy costs. It provides budget security and protects you from market spikes.
• Cons: The fixed rate usually includes a risk premium, making it more expensive than the average variable rate. You do not benefit when market prices drop to zero or become negative.
• Suitability: Best for those on a strict budget who cannot risk a sudden increase in costs.

The Role of Nord Pool

The price of electricity in Denmark is determined by the Nord Pool power exchange. This is a shared market for the Nordic and Baltic countries. Prices are set one day in advance. Every day around 13:00 CET, the hourly prices for the following day are published.

Denmark is divided into two price zones:

• DK1 (West Denmark): Jutland and Funen. Connected to Germany, Norway, and Sweden.
• DK2 (East Denmark): Zealand and the islands. Connected to Sweden and Germany.

Prices can differ between DK1 and DK2 due to transmission bottlenecks, though they often align. Wind power plays a massive role in price setting. On windy days, prices in West Denmark (DK1) can drop to near zero or even become negative because of the high concentration of wind turbines.

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 Housing Registry), you are entitled to a significant reduction in the electricity tax.

The standard electricity tax (elafgift) is high, but for homes with electric heating, the tax is reduced to a minimum rate for all consumption exceeding 4,000 kWh per year. This reduction is applied automatically if your home is correctly registered, but you must ensure your electricity provider is aware of your heating source. This can save households thousands of kroner annually.

Moving Out and Ending Contracts

When you move out of a Danish apartment, you must actively cancel your electricity contract or transfer it to your new address. You are liable for the consumption until you report the move.

The process typically involves:

1. Notifying your provider (e.g., Velkommen) via their self-service portal.
2. Providing the move-out date.
3. Providing your new address (for the final bill).
4. Reading the meter on the day you hand over the keys (though most meters are now read remotely, it is safe to take a photo).

If you fail to cancel, you will continue to pay for the electricity used by the next tenant or the landlord until a new contract is registered on the meter.

Troubleshooting Power Outages

If your power goes out, the first step is to check your fuse box (HFI/HPFI relay). If the fuses are intact and your neighbors also have no power, the issue is with the grid, not your home.

In this scenario, you do not call your commercial provider (e.g., Velkommen). Instead, you must contact your grid operator (Netselskab). You can usually find their name on your electricity bill. Major operators like Radius or N1 have maps on their websites showing current known outages and expected repair times.

Payment Methods

The most common way to pay utility bills in Denmark is through Betalingsservice. This is a direct debit system connected to your Danish bank account.

When you receive your first bill, it will often come with a payment slip (Girokort). You can pay this via your online bank. At the same time, you should register the payment for Betalingsservice. This ensures future bills are paid automatically on the due date, preventing late fees. Late payment fees in the Danish energy sector can be substantial, often starting around 100 DKK plus interest.

Summary of Costs for Expats

For a standard apartment in Denmark (80-90 sqm) with district heating (not electric heating), a typical household uses between 1,600 and 2,000 kWh per year.

• Low usage (Single person): ~1,200 kWh/year.
• Average usage (Couple): ~2,000 kWh/year.
• High usage (Family): ~3,500+ kWh/year.

By understanding your consumption and the tax structure, you can better predict your monthly expenses. While you cannot control the taxes or grid fees, choosing a provider with a low subscription fee and a transparent pricing model helps keep the controllable part of your bill optimized.