It has become a bit of a folk sport to keep an eye on the prices of electricity, which can be followed via apps, among other things. But from October 1st there will be even more prices to keep an eye on. At that time, electricity prices will switch from being hourly-based to being able to change every quarter.
This means that the 24-hour electricity prices will quadruple to 96 electricity prices. It is not just Denmark, but the entire European electricity market that is switching to the new system.
The idea is that the production of electricity from solar and wind and the price of electricity must be monitored better. This is explained by department manager Martin Dam Wied from the industry organization Green Power Denmark.
- If you have a wind turbine that gradually increases in production because the wind is increasing, this will be reflected in the quarter prices in the form of stepwise jerks instead of a larger increase or a larger decrease from one hour to the next. We think that in principle is a good way to go, he says.
Although many Danes are keen to check electricity prices and adjust their consumption accordingly, according to the department manager, only a few will be able to gain an economic advantage from the new pricing system:
- There will be something to gain for large electricity consumers, for example businesses, who have a better opportunity to move consumption down to a neighborhood level. But for the general population, I don't think it will be a highly sought-after product, says Martin Dam Wied.
Quarterly billing will only be relevant for electricity customers with an electricity subscription based on variable prices. In addition, you will need a newer electricity meter that can handle neighborhood values.
- There will be a few electricity meters that are too old to be able to handle neighborhood values. As a consumer, you should be aware of this, says Martin Dam Wied.
According to the department manager, it is also not entirely clear how many companies will offer a variable product based on changing prices every quarter.
- How many electricity suppliers will choose to offer quarter settlement is currently uncertain. But if your supplier does not offer it and you would like it, you can switch, says Martin Dam Wied.
According to Green Power Denmark, 69 percent of electricity price agreements in Denmark in 2023 were based on variable prices. This is a significant increase compared to 2021, when it was less than half - 43 percent.
/ritzau/
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