Electricity, district heating and gas supply

Electricity, district heating and gas supply in Denmark all play key roles in achieving the overall objectives of reducing greenhouse gas emissions and increasing the use of renewable energy

The three utility systems (electricity, heating and natural gas) are regulated by the same complex legislation, which all have common characteristics and yet are very different.

In the case of electricity and gas, the transport routes - high voltage power lines and gas pipelines – are owned by the state through the company Energinet.dk. Sale of electricity and gas takes place under free market conditions between the manufacturers and the providers, who use the electricity and gas networks to bring energy out to the customers. Consumers and businesses are, in principle, free to choose their provider.

District heating suppliers on the other hand are in effect local monopolies. The district heating company will usually own both the production plant and the heating pipe network and sell the heat directly to the customer. Unlike electricity and gas, heating companies are not allowed to earn profits at all on sales and as a result companies are not heavily regulated. Heating prices are determined by the law of 'the sum of necessary costs'.

As a follow-up to the energy agreement of 21 February 2008, the 5 November 2008 proposal seeks to put forward a sustainable energy law. This law would bring together existing legislation on renewable energy and would also include four new initiatives relating to wind energy: a compensation scheme for people living near wind turbines, a purchasing rights scheme, a green scheme and a guarantee fund.

Latest update: 21. February 2012