Netafgifter

Netafgifter, or network charges, are charges added to the price of electricity to cover the costs of operating, maintaining, and expanding the electricity grid, including transmission and distribution networks and related services. They are paid to electricity network operators and are a separate component from the energy purchase price.

The charges fund things such as grid operation and maintenance, network investments, grid losses, and system services including balancing and reserve capacity. The exact composition and rates are determined by national regulation and the network operators; the charges can vary by customer type, region, and time period.

On consumer bills, netafgifter are typically shown as a distinct line item along with other charges such as electricity tax (elafgift) and VAT. The level of netafgifter can change over time as grid costs and policy goals change.

In Denmark, netafgifter are a key element of the electricity price and are subject to oversight by the national energy regulator and authorities. The tariff structure is designed to recover the costs of maintaining a secure and reliable grid, including investments in capacity and the integration of renewable energy. Because grid costs are largely fixed, households or businesses with higher consumption or in regions with congested networks may see different per-kWh charges.

See also: electricity tariff, electricity tax, energy regulation.