Understanding your electricity bill

Understanding your electricity bill

Your annual electricity bill shows the price you pay for electricity. Get help here to read your electricity bill.

The bill shows the kWh used
Your electricity consumption is measured in kilowatt hours. Typically, you will pay around DKK 2 per kWh. The average Danish consumer uses 1,423 kWh of electricity per year, resulting in a bill of just under DKK 3,000 (EUR 400).

Prices fluctuate over the year
The price per kWh is based on a variety of different items, and fluctuates over the year. If the price of 1 kWh is shown on the annual account, this is the average price per kWh over the year. You also pay fixed charges which have nothing to do with your consumption.

Itemised bill
There are slight differences in what the energy companies show on an electricity bill, but overall you will find more or less the same items regardless of to whom you pay your bill.

The chart below explains the items:

Name Description 2010 price in DK øre/kWh
Electricity tax Fixed government tax. Primarily a tax on energy consumption, but also includes an energy savings charge of DKK 0.006/kWh, which finances the Danish Energy Saving Trust. 50.5
Electricity distribution charge Fixed government tax on the distribution of electricity. Sometimes included in electricity tax above where not shown as separate item. 4.0
Energy savings tax Fixed government tax on CO2 emissions – previously called CO2 tax. Not to be confused with energy savings charge included in electricity tax above. 6.2
Public liabilities Government tax paid to ensure security of supply, as a subsidy for green energy, and for research into green electricity production. Fluctuates quarterly
Transport of electricity Covers costs incurred to run and maintain the electricity grid to your home. Fixed by the grid distribution company
Consumption The price you pay for the electricity you use. Fixed by the electricity supply company
Grid charge Fixed charge for using the grid company´s cable network. Regardless of consumption
Connection charge Fixed charge for being a customer of an electricity supply company. Regardless of consumption

From 2011, another government tax will be introduced – the so-called supplementary levy – which will be included in the calculation of the electricity tax. The supplementary levy will be 6 øre per kWh and will increase together with the electricity tax by 1.8% per year, up to and including 2015.

Other information shown on the bill

  • Meter identifier
    Your meter has a unique 18-digit number which is called a meter identifier. You should quote this when switching to another supplier.
  • Consumption in previous years
    Information may be provided about your consumption in previous years, along with a comparison of your usage with similar households.

> See a bill from DONG Energy with details explained (external link only in Danish)

2 types of companies
Your electricity bill may come from up to 2 different companies, namely the one which supplies your power (electricity supplier), and the one which owns the cables (distribution grid company).

The electricity supplier and distribution grid company can be one and the same, but this may not always be the case. You actually have a choice of which electricity supplier to use. Conversely, the distribution grid company is fixed because only 1 company can own the cables to your home.

If you choose an electricity supplier other than your distribution grid company, you will receive 2 bills (or 1 bill with different amounts from 2 companies).

Benefits of choice
It can be advantageous to switch electricity supply company. The benefits include saving money and/or supporting electricity production from renewable sources.

You can also choose a company which allows you have so-called remote (smart) metering. This means you can monitor and track your electricity consumption on the internet without having to read the meter.

Page last updated 15.09.2011