Due to the recent prolonged decline in electricity market prices, electricity network companies Cerius and Radius Elnet have decided to reduce their tariffs effective March 1st.
Around 2.5 million Danes in Zealand, Lolland, Falster and Sydhavsøerne will benefit from the price reduction, as the two companies will lower the tariff rate, which is the price charged by companies for transmitting energy from the source to consumers and maintaining the electricity grid. It also includes the price of lost electricity. In addition to tariffs, the electricity bill consists of the raw electricity price, value-added tax and state fees.
The percentage of the tariff reduction and the areas concerned
The average tariff is expected to decrease by 18% in the Radius region, which covers Copenhagen, North Zealand and parts of Central Jutland. In the rest of Zealand and Sydhavsøerne, the tariff is expected to decrease by 20%. This will apply regardless of whether you have a fixed or variable electricity rate.
The tariffs were set at the end of the year because the two companies had significant additional expenses from the previous year that had to be reduced, according to Cäthe Juul Bay-Smidt of Cerius and Radius Elnet. However, no one knows what will actually happen later this year, and Cäthe Juul Bay-Smidt cannot predict whether the tariffs will remain at a relatively low level for long. She commented to the source, "I've stopped promising anything regarding our prices. No one could have predicted the rocket-like rise in electricity prices in the fall, and no one knows what will happen for the rest of this year.".
Another company may lower prices in the summer.
As for Tre-For, which supplies electricity to the Triangle region, it is also currently considering reducing tariffs in general, according to Charles Nielsen, director of infrastructure and engineering at Tre-For: “We are thinking that we might be able to reduce prices during the summer holiday period. I don’t expect that we will be able to do so soon, because we have a relatively large debt from last year and previous years that needs to be settled first.”.
