Electricity prices will be updated every 15 minutes in Denmark from October 1st, meaning changes in the unit price could come more frequently than the current hourly updates.
Consumers in Denmark are able to follow fluctuations in electricity prices on platforms including various apps, allowing them to plan their usage according to when prices dip.
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The change, which is taking place across the European electricity market, means that the current maximum of 24 electricity prices during the course of a day will increase to 96.
The intention of the new system is to allow generation of electricity by sun and wind production to be more closely monitored, according to Martin Dam Wied from interest organisation Green Power Denmark.
“If you have a windmill that is gradually increasing its production because the wind is getting stronger, that will be reflected in the quarter-hour price in the form of small steps, instead of larger rises or drops from one hour to the next,” Wied told news wire Ritzau.
“We think that’s a good way to go in principle,” he said.
Although many consumers in Denmark already keenly follow short-term fluctuations in the electricity unit price, they may find it difficult to extract additional savings with the new system, Wied said.
“Large electricity users such as businesses may gain something if they are able to move their consumption on a quarter-hourly level,” he said.
“But for the wider population, I don’t think this will be a product in high demand,” he added.
Quarter-hourly electricity billing will apply for customers who have variable-rate electricity contracts. You will also need to have a recent model of electricity meter which can process quarter-hour increments.
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Older models may not be suitable for this, according to Wied, who also pointed out that companies may choose not to offer variable rate deals based on the 15-minute updates.
“But if your supplier does not offer it and you are keen to have it, you can always change (supplier),” he added.
Around 69 percent of electricity contracts in Denmark in 2023 were based on variable rates, according to Green Power Denmark. That was a significant increase from the 43 percent recorded in 2021.
The 2022 energy crisis, which saw energy prices soar before returning to more stable levels, is considered a key reason for this.
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