September electricity prices hit highest level in nearly four years

Electricity prices in Denmark averaged their highest level since December 2022 this month, DR reports, with raw prices averaging 1.07 kroner per kilowatt-hour east of the Great Belt and 1.05 kroner west of it.

The figures were reported by energy companies OK and Norlys. The raw price is the cost of electricity before VAT, taxes and grid tariffs.

Prices were driven up partly by uncertainty around the Strait of Hormuz, which has pushed gas prices higher, and partly by limited production from wind turbines and solar panels.

“There has unfortunately not been enough wind and sun to push prices down in September,” said Troels Skipper, commercial manager at OK. He said high gas prices caused by geopolitical unrest had therefore driven electricity prices for much of the month.

Prices also fluctuated sharply. The hourly raw electricity price reached its highest level in just over two years during the evening of September 14. Five days later, prices fell to zero for much of the weekend of September 19 and 20.

Electricity costs are also set to rise as most suppliers switch to winter tariffs on October 1. Transporting electricity through the grid costs more in winter because demand on the network is higher.

OK said Danish consumers’ bills would not be higher than last year, however, because the electricity tax was reduced in 2026 to the EU minimum rate.