How the Danish Electricity Market Works
Denmark uses an unbundled electricity model where the grid operator (netselskab) and the electricity supplier (elselskab) are separate companies. Your grid operator is fixed by your physical address and handles cables, meters and delivery. Your electricity supplier — the company you actually pay for the power — is your free choice. This is different from most countries where a single utility handles everything.
The market was fully liberalised in 2003, meaning every household in Denmark can switch provider at any time with no interruption to supply. Wholesale electricity prices are set hourly on the Nord Pool exchange, and providers add a small markup (spottillæg) plus a monthly subscription. This is where you save money — by picking a provider with the lowest combined markup and fee.
Denmark is divided into two price zones: DK1 (western Denmark — Jutland and Funen) and DK2 (eastern Denmark — Zealand and Copenhagen). Prices can differ by 5-15 øre per kWh between zones because DK1 has more wind production. When comparing prices, make sure you are looking at the zone that matches your address.
What You Need to Sign Up (CPR, MitID, NemKonto)
To sign up with any Danish electricity provider, you will need three things: a CPR number, MitID and a Danish bank account with NemKonto. Here is how to get each one if you have just arrived in Denmark.
CPR Number
Your CPR (Central Person Register) number is your personal identification number in Denmark. Visit your local Borgerservice (citizen service centre) within the first few days of arriving. You will need your passport, proof of address and — if applicable — your work or study permit.
MitID
MitID is Denmark's digital signature system — the equivalent of logging in with your national ID. You can set it up at borger.dk or through your Danish bank. It is available in English and takes about 15 minutes to activate. You need MitID for virtually all official transactions in Denmark, including signing an electricity contract.
Danish Bank Account & NemKonto
Open a Danish bank account (Danske Bank, Nordea and Jyske Bank all serve internationals) and register it as your NemKonto at nemkonto.dk. Most providers require NemKonto for billing.
Don't have these yet? Until you actively choose a provider, you will be placed on forsyningspligt — the expensive default supply that can cost roughly twice as much as the cheapest market offer. Get your CPR, MitID and bank account sorted as quickly as possible, then switch immediately.
How to Choose: 5 Things That Actually Matter
With nine providers on the market, the differences can seem small. Focus on these five factors to find the best deal for your household.
Total Cost per kWh
Do not just compare the spot markup. Calculate the total annual cost by combining the spot markup with the monthly subscription divided by your expected consumption. A provider with 0 øre markup but 49 kr./month subscription can be more expensive than one with 2 øre markup and 18 kr./month.
Intro Offers
Several providers run temporary offers — a one-off welcome credit, a waived subscription for a few months, or a reduced markup. These are genuine savings, but they are small next to the standard terms you pay for the rest of the contract: a 400–500 kr. credit is worth less than a markup that is a few øre lower year after year. Always check what the deal costs once the introductory period ends.
Binding Period
Avoid any contract lock-in. The best providers in Denmark offer ingen binding (no binding), meaning you can switch at any time without penalty. All nine providers in our comparison currently offer no binding.
Green Energy
If sustainability matters to you, check how the provider sells grøn strøm (green electricity — certified renewable energy). Norlys is the only provider here that includes guarantees of origin in the price (FlexEl). EWII (+10 øre/kWh), Jysk Energi (+7.5 øre/kWh), OK (+6 øre/kWh), DCC Energi (+3.5 øre/kWh) and AURA (market price) sell it as a paid add-on, so it is not part of the price shown above — and Jysk Energi pre-selects its climate add-on during signup. Altid Energi, SEF Energi and Modstrøm do not offer it — Modstrøm markets a green profile and shows wind and solar generation in its app, but does not state that guarantees of origin are included in the price.
Trustpilot Score
Trustpilot is the primary review platform in Denmark. Aim for a provider with a score of 4.0 or higher based on at least 1,000 reviews. Low scores often indicate poor customer service or billing problems — both of which are painful to deal with as a non-Danish speaker.
Price Comparison — All 9 Providers
Prices shown are the total cost per kWh including spot price, transport, electricity tax, VAT and the provider's markup. They exclude the monthly subscription, which is listed in its own column — add it to the kWh price to get the real annual cost. Figures are based on a standard household consumption of 4,000 kWh/year and are updated regularly. Note that the subscription column shows the rate at 4,000 kWh. It is tiered at Altid Energi (18 kr./mo. up to 5,000 kWh, 38 kr./mo. up to 8,000 kWh, 58 kr./mo. up to 12,000 kWh, 98 kr./mo. up to 20,000 kWh, 127 kr./mo. above that) and SEF Energi (39 kr./mo. up to 6,000 kWh, 59 kr./mo. above that), so it steps up with your annual consumption — if you use significantly more than 4,000 kWh a year, the ranking changes.
| Provider | DK1 Price | DK2 Price | Subscription | Green | Trustpilot |
|---|---|---|---|---|---|
 Altid Energi | 1.70 kr./kWh | 1.81 kr./kWh | 18 kr./mo. | No | 4.5/5 |
 SEF Energi | 1.70 kr./kWh | 1.81 kr./kWh | 39 kr./mo. | No | 4.3/5 |
 Modstrøm | 1.80 kr./kWh | 1.91 kr./kWh | 10 kr./mo. | No | 4.2/5 |
 AURA | 1.70 kr./kWh | 1.81 kr./kWh | 49 kr./mo. | Paid add-on | 4.6/5 |
 OK | 1.70 kr./kWh | 1.81 kr./kWh | 49 kr./mo. | Add-on (+6 øre) | 4.3/5 |
 DCC Energi | 1.77 kr./kWh | 1.89 kr./kWh | 25 kr./mo. | Add-on (+3,5 øre) | 4.1/5 |
 EWII | 1.76 kr./kWh | 1.88 kr./kWh | 29 kr./mo. | Add-on (+10 øre) | 4.2/5 |
 Jysk Energi | 1.70 kr./kWh | 1.81 kr./kWh | 55 kr./mo. | Add-on (+7,5 øre) | 4.6/5 |
 Norlys | 1.80 kr./kWh | 1.91 kr./kWh | 29 kr./mo. | Included | 3.5/5 |
How to Switch in 3 Steps
Switching electricity provider in Denmark is free, takes less than five minutes and does not interrupt your supply. Your new provider handles everything — including cancelling your old contract.
Choose a provider
Pick a provider from the comparison above. Consider total cost, green energy preference and Trustpilot score. If you are unsure, Altid Energi offers the lowest annual cost at 4,000 kWh and OK has the highest customer satisfaction. With a much higher consumption, check the tiered subscription before you decide.
Sign up online with MitID
Click the provider link, fill in your details and confirm with MitID. The entire process takes 2-5 minutes. You do not need to contact your current provider — the new one handles the switch automatically.
Done — you keep your electricity
There is no interruption to your power supply. The switch happens digitally in the background. You also have a 14-day withdrawal right (fortrydelsesret) if you change your mind.
Understanding Your Electricity Bill
A Danish electricity bill has several components. Only two of them — the spot markup and the subscription fee — are within your control. Here is a breakdown of each line item.
| Component | Danish Term | Typical Cost | Can You Change It? |
|---|---|---|---|
| Spot price | Spotpris | 0.30–0.80 kr./kWh | No — set by market |
| Spot markup | Spottillæg | 0–9.7 øre/kWh | Yes — switch provider |
| Subscription | Abonnement | 18–49 kr./mo. | Yes — switch provider |
| Grid tariff | Nettarif | Varies by area & time | No — fixed by address |
| Electricity tax | Elafgift | 0.8 øre/kWh | No — government tax |
| VAT | Moms | 25% | No — government tax |
5 Common Mistakes Expats Make
Moving to a new country means navigating unfamiliar systems. These are the five most common — and most costly — mistakes we see expats make with their electricity in Denmark.
Staying on forsyningspligt
The expensive default supply can cost roughly twice as much as the cheapest provider. Many expats do not realise they are on it, or delay switching because the process seems complicated. It is not — it takes five minutes.
Choosing on brand name alone
A well-known name does not mean a lower price. Some of the most recognised providers in Denmark charge significantly more than smaller, equally reliable competitors. Always compare on price and terms, not brand recognition.
Ignoring DK1 vs DK2
Prices differ between western and eastern Denmark. If you live in Copenhagen (DK2), do not compare using DK1 prices — you will underestimate your actual cost. Always check the price for your specific zone.
Paying large aconto (prepayments)
Some providers ask for large advance payments based on estimated usage. If the provider goes bankrupt — which has happened several times in Denmark — you risk losing that prepaid amount. Choose providers with monthly billing to minimise risk. Read our bankruptcy guide.
Not checking Trustpilot
Customer service quality varies hugely between providers. A provider with a Trustpilot score below 3.5 may save you a few kroner per month but cost you hours of frustration if something goes wrong. As an English speaker, responsive customer service is especially important.
Danish Electricity Terms — Quick Glossary
Danish electricity contracts are full of unfamiliar terms. This glossary covers the twelve words you will encounter most when comparing providers and reading your bill.
| Danish | English | What It Means |
|---|---|---|
| Elselskab | Electricity provider | The company you choose and buy electricity from |
| Netselskab | Grid operator | Runs the physical cables — fixed by your address, cannot be changed |
| Spotpris | Spot price | Hourly wholesale price set by Nord Pool exchange |
| Spottillæg | Spot markup | Your provider's per-kWh fee on top of spot price — the main thing to compare |
| Abonnement | Subscription fee | Fixed monthly fee charged by your provider |
| Nettarif | Grid tariff | Fee for transporting electricity — paid to grid operator, varies by time of day |
| Elafgift | Electricity tax | Government tax — drastically cut to 0.8 øre/kWh in 2026 |
| Moms | VAT | 25% value-added tax applied to your entire bill |
| Binding | Contract lock-in | Minimum period you must stay — best providers have none |
| Forsyningspligt | Supply obligation | Expensive default provider assigned if you don't choose — switch away fast |
| Aconto | Prepayment | Advance payment based on estimated usage — risky if provider fails |
| MitID | Digital ID | Denmark's digital signature system — needed for all contracts |
