Electricity became around 24 percent more expensive in Denmark in just one month, pushing the average spot price in August to its highest level since December 2022. For households on a variable electricity contract, it was an expensive month, but a near abolished electricity tax means Danes are far from feeling the pain seen during the 2022 energy crisis.
Spot prices jump sharply in August
The average spot price for August ended at 94 øre per kWh in western Denmark and 95 øre per kWh in eastern Denmark, up 23 and 24 percent respectively compared with July. Compared with August last year, the increase is even steeper, with spot prices up around 71 percent west of the Great Belt and 69 percent east of it.
Gas markets and heat push prices higher
A key driver lies far from the Danish electricity socket. The war between the United States and Iran has made shipping through the Strait of Hormuz uncertain, hitting Qatar’s liquefied natural gas exports hard. European LNG prices reached their highest level since early 2023 in August.
That feeds directly into the electricity market, since gas fired power plants still have to step in when wind and solar output falls short.
At the same time, Europe experienced intense heat in August. In France, nuclear power plants had to reduce output or shut down reactors due to warm cooling water and low water levels, while wind production in Germany also fell. Reuters reported earlier in August that 7.3 GW of French nuclear capacity was temporarily unavailable during the heatwave.
The combination amounts to close to a perfect recipe for high electricity prices: lower production, more expensive gas, and greater demand for electricity for uses such as air conditioning.
The electricity bill tells a different story
There is an important detail behind the dramatic price figures. The 94 to 95 øre figures refer only to the spot price. Grid tariffs, supplier markups, subscription fees, VAT and electricity tax all come on top, and the electricity tax in particular has changed dramatically. In 2025 it stood at 72 øre per kWh. From 1 January 2026 it was temporarily lowered to just 0.8 øre per kWh, a rate that also applies in 2027.
This significantly softens the price increase for households. Even though electricity itself is around 70 percent more expensive than in August last year, an average consumer is at the same time saving more than 71 øre in electricity tax on every kWh compared with 2025.
As a result, Danes remain well short of the electricity bills that caused real pain during the energy crisis.
A trend worth watching
Even so, the underlying trend is worth watching. In the first eight months of the year, the average spot price has been 77 øre per kWh in both eastern and western Denmark, up from around 60 øre during the same period last year.
In other words, 2026 is well on its way to becoming the most expensive year for electricity since the energy crisis, even though the state is currently absorbing a large part of the impact on household bills.
