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The price of electricity from the socket will increase significantly from the turn of the year. This is due to increasing costs of operating and expanding the electricity grid. (Archive photo).
Ida Marie Odgaard/Ritzau Scanpix

Expansion of the electricity grid makes it more expensive to use electricity from New Year

Energinet has increasing costs for operating and expanding the electricity grid, and this is reflected in higher prices.
6. SEP 2023 12.49
Transport
Økonomi

It will be a little more expensive to be an electricity consumer from the New Year, Energinet writes in a statement on its website. The so-called electricity consumption tariffs will increase by 1.3 øre, so that in 2024 they will be 12.5 øre per kWh annually. For a family in a detached house, this means an average increase of DKK 232 excluding VAT.

If the household is equipped with a heat pump and an electric car, the increase is on average DKK 336, while a smaller company will typically experience a tariff increase of DKK 3430. The reason is increasing costs for operating and expanding the electricity grid, explains department manager Marie Budtz Pedersen.

- The overall factor is that the system must be converted so that electricity from wind and solar replaces oil, coal and natural gas. The energy crisis due to the war in Ukraine has made it even more important that this conversion happens quickly. All of this requires major investments in a new electricity grid in recent years. And that is why it is necessary to raise the tariffs for the next few years, she says.

May fall again in the long term

However, the department head predicts that it will be possible to lower the tariffs again later. This is because the total electricity consumption will probably increase significantly in the coming years as a result of the green transition. This means that the costs of operating the electricity grid can be spread over many more kWh.

- Therefore, it seems that the tariff per kilowatt will fall again in a few years, says Marie Budtz Pedersen, emphasizing that the assessment is fraught with uncertainty.

The price of electricity consists of three parts: the electricity price itself, a so-called network tariff, which covers the transport of electricity, and a so-called system tariff, which is linked to security of supply and the quality of the electricity supply.

The price of electricity rose significantly last year in the wake of Russia's invasion of Ukraine and the subsequent shortage of gas. However, the price of electricity has since fallen again, helped by a temporary suspension of the electricity tax from January 1 to July 1.


/ritzau/
 

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https://www.doi.dk/en/vindkraft/artikel/udbygning-af-elnettet-goer-det-dyrere-at-bruge-stroem-fra-nytaar

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