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ENERGY

Danes cut electricity use by ten percent with prices ‘the same’ as last year

Electricity prices were similar in January 2022 and January 2023, but consumers in Denmark used around 10 percent less power this year compared to last.

Danes cut electricity use by ten percent with prices ‘the same’ as last year
Electricity prices have returned to more stable levels but Danish consumers are still being efficient. File photo: Bo Amstrup/Ritzau Scanpix

Increased awareness and saving measures appear to have left their mark on Danish electricity consumers, according to a report by broadcaster DR.

As energy bills shot upwards last year because of factors including inflation and the Russian invasion of Ukraine, many began to limit or economise their use of electricity and energy.

Measures included the use of apps to track the hourly price, use of appliances at night and turning down heaters and switching off lights.

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While electricity prices were extremely high during the late summer and autumn last year, reaching over 8 kroner per kilowatt hour in August, they are now back at a comparable level to January 2022, when the price rises were yet to take hold.

Analysis from energy companies NRGi and Norlys have both found that people in Denmark used considerably less electricity in January this year than they did 12 months prior, DR reports.

Norlys said its customers used 13 percent less energy from one January to the next, while NRGi found the same trend, placing the difference at around 10 percent.

“This shows that we have retained good habits,” Norlys Energy’s head of customer service Pernille Storgaard told DR.

That makes sense despite what are currently equivalent energy prices between this year and last, an analyst said.

“The fall in price [since mid-late 2022, ed.] looks like stopping now and then the electricity price will be at the level we have now. That is around 1 krone per kilowatt hour when it’s not windy and a bit less when it’s windy or the sun is shining,” Kristian Rune Poulsen, senior consultant with Green Energy Denmark, told DR.

Denmark’s increased reliance on wind and sun generated power means swings in price are more likely than in the past, he said.

“You can still save money by moving energy consumption by, for example, turning on the dishwasher at night. If you have an electric car, or are a high consumer of electricity, even more money can be saved by being a flexible consumer,” he said.

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ENERGY

Danish electricity company announces ‘record negative prices’ after sunny May

A high number of sunny days in May gave Danish energy company Norlys a record number of hours in which its energy prices were negative, the company said on Monday.

Danish electricity company announces 'record negative prices' after sunny May

Last month saw a total of 75 and 59 hours of ‘negative’ electricity prices in the western and eastern halves of Denmark respectively, Norlys said in a press release.

Unfortunately, a ‘negative’ price doesn’t mean you will be paid for switching the lights on, because taxes and transport costs must still be added to the base price.

Specifically, the total price paid by customers can include (in addition to the base rate) state tariffs, subscriptions, one-off charges, VAT and payments to the local energy grid.

Tariffs, like the cost of raw electricity, can also fluctuate from hour to hour. This depends on the tariff model used by individual companies.

But lower electricity prices can be taken advantage of by setting timers on thirsty appliances like dishwashers and tumble dryers and running them at these times. This can include off-peak times of the day when there is less demand for power, as well as fluctuations related to production.

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The total of 134 hours across Denmark in which customers receive a discount due to the negative ‘raw’ energy price is a record for a single month, Norlys said.

“We know that many of our customers follow electricity prices closely and the trend in May also underlines that there is a very good reason for this,” Norlys director for energy sales Mads Brøgger said in the statement.

“It’s good for your wallet and the green transition alike if you can plan your consumption for the hours in which there is a lot of sun and wind, making the electricity price low,” he said.

READ ALSO: How an app function can help cut your Danish electricity bill

May’s high frequency of negative base electricity rates can be attributed to the pleasant spring weather, which provided both wind and sun to the energy system in Denmark.

Meanwhile, Denmark’s electricity infrastructure has become more closely connected to other parts of Europe, notably Germany and The Netherlands. Both countries have increased their solar power capacity in recent years.

“It benefits us to have many sunshine hours, as was the case in May. Meanwhile, energy consumption was low in May because it was warm enough not to need electricity for heating, but not hot enough to need it for cooling. So there was a sweet spot in many ways,” Brøgger said.

The trend of low electricity prices has so far continued into June, with negative base rates occurring on Sunday for a number of hours in both the eastern and western parts of the country.

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