The price of a kilowatt of energy in Denmark dropped from an average of 3.5 kroner in August to 1 krone in October, according to figures reported by broadcaster DR.
An unusually mild autumn has kept demand low, while favourable winds have bolstered wind energy production.
That has allowed many people to hold off from using heating in their homes well beyond the usual start date for the heating season of October 1st.
While some housing companies have now encouraged residents to switch on their heating, measures for limiting electricity consumption should still be followed where possible, experts told DR.
READ MORE: When should I turn on my heating in Denmark this winter?
“Unfortunately, we probably cannot expect electricity prices to continue to fall,” Kristian Rune Poulsen of interest organisation Green Power Denmark told DR.
“It is probably a temporary situation that we have a significant surplus of gas and thus relatively low electricity prices,” he said.
The deputy director of the Danish Energy Agency (Energistyrelsen) said it’s important to continue being judicious with electricity use because the lower price is likely to be a temporary reprieve.
“Yes, things look better now with prices than they did one month ago, but that doesn’t mean we can lean back and believe the crisis is over with,” deputy director Stine Leth Rasmussen told DR.
Measures adopted by people in Denmark to reduce electricity costs include using appliances at off-peak times and monitoring prices using apps.
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The price of electricity is low in part because the demand for gas is currently low with stocks full – itself partly a result of energy-saving measures. Additionally, favourable wind conditions have given strong electricity production from Danish turbines, meaning gas is less used to produce electricity.
It should be noted that not everyone will benefit from short-term lower electricity prices. People with fixed-rate electricity plans are unlikely to see a change to the rate they pay in the immediate future.
As winter sets in, consumption of gas will increase, reducing the stocks Denmark has at its storage facilities, Rasmussen said.
“We still expect there will be scarcity and high prices on gas in the long term in Europe. We are looking towards a scarce supply situation next year when gas stocks are to be filled prior to the heating season. So the crisis is not over,” she said.
As such, continuing energy saving measures can still take the edge off high energy bills and will also help to conserve supplies in Denmark and Europe, she said.