Danish electricity customers face their most expensive year since the 2022 energy crisis, with summer 2026 prices nearly 50% higher than last year despite a massive cut in government electricity tax.
The numbers are stark. Average electricity prices in summer 2026 hit around 81 øre per kilowatt‑hour before taxes and fees, compared to 53 øre last summer. Andel Energi, Denmark’s largest energy company with over a million customers, warns that 2026 is shaping up to be the costliest year for electricity since the crisis.
I have watched electricity bills become a recurring anxiety for expats and Danes alike. What makes 2026 especially frustrating is the paradox at its heart. The government slashed the electricity tax from 72 øre per kWh to just 0.8 øre in January, yet customers are paying more than ever.
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Where the Money Actually Goes
The tax cut did not translate into savings. Network tariffs, company subscriptions, and add‑on fees have climbed sharply, eating up the relief and then some. Every month this year except February has seen prices markedly higher than both 2025 and 2024, according to Andel Energi’s data.
Josefine Walter, commercial director at Andel Energi, points to geopolitical unrest as a driver of global energy costs. But she also highlights a domestic factor: solar power, now the cheapest energy source available, helped moderate summer prices. “Fortunately, it has been a warm and sunny summer with very high solar production,” Walter says. That cushion will disappear as autumn arrives and heating season begins.
Network tariffs now vary wildly depending on where you live and when you use power. In August 2026, the cheapest network companies charge around 11 øre per kWh during off‑peak hours. The most expensive, including Cerius and Trefor, charge over 130 øre during peak demand, excluding VAT.
Peak Hours Hit Hardest
This is where the new time‑differentiated tariff model bites. Radius and Cerius, which serve roughly 1.5 million customers across eastern Denmark, charge peak‑hour rates of up to 120 øre per kWh in winter months. Those rates drop to around 51 to 56 øre in summer peak hours, still high by any standard.
The idea behind time differentiation is sound: encourage people to shift consumption to cheaper, greener hours. But for families with kids, jobs, and inflexible schedules, moving washing and cooking to midnight is not realistic. You end up paying a penalty for living a normal life.
Some commercial electricity companies have also raised prices. NRGi increased its spot surcharge from 5 to 9 øre per kWh in February, costing typical households an extra 160 kroner per year. Vindstød introduced a 39‑kroner monthly subscription and a 49‑øre surcharge, adding roughly 2,400 kroner annually.
All told, the average all‑in price in August 2026, including spot price, fees, network tariff, tax, and VAT, runs between 1.54 and 1.76 kroner per kWh. That is lower than the worst of the energy crisis but still painfully high.
A Costly Winter Ahead
Andel Energi expects prices to climb further as solar production drops and heating demand rises. “We could risk facing a quite serious situation,” Walter warns. She does not predict a repeat of the August to October 2022 spike, when prices hit ten times pre‑crisis levels. But the same patterns are emerging.
Customers on advance billing, who pay estimated amounts months ahead, face the biggest risk of nasty surprises. Walter recommends switching to backward billing, where you pay only for energy already consumed at actual market rates. “Then you avoid lending money to your energy company based on uncertain calculations,” she says.
For expats navigating the Danish energy market, 2026 underscores an uncomfortable truth. The system is complex, regionally fragmented, and increasingly expensive despite political promises of relief. The government cut its own tax but has little control over network companies or commercial suppliers. Offshore wind expansion and grid investment needs will keep upward pressure on tariffs for years.
If you have not reviewed your electricity contract recently, now is the time. Compare network tariffs if you are moving. Consider whether flexible or fixed pricing suits your budget. And brace for a winter that could make this already expensive year even costlier.
Sources and References
Via Ritzau: 2026 bliver et dyrt år for danske elkunder
The Danish Dream: Danish solar power makes daytime electricity cheapest
The Danish Dream: Denmark tests vertical solar panels on farmland
The Danish Dream: Denmark’s new strategy for offshore wind energy
