Harsh winter pushes electricity prices up – January the most expensive in several years

January 2026 has seen significantly higher electricity prices than almost any month in the past year and has been the most expensive January for Danish electricity customers since the energy crisis of 2022. This is shown by figures from several of the country’s largest energy companies, which point to extreme winter cold, low wind production and high gas prices as the primary causes.

According to Andel Energi, the average price for January amounted to approximately 82.1 øre per kilowatt-hour – the highest level since February 2025. Norlys confirms the same picture, with the pure electricity price in January also calculated at an average of 80 øre/kWh. The energy company OK reports the same level and calls January the second most expensive month since the energy crisis.

“An average price of 80 øre per kWh is high. It is primarily the winter cold, lack of wind and precipitation, and high gas prices that together have pushed electricity prices up and made power really expensive for Danish electricity customers,” says Troels Skipper, product manager at OK.

Norlys highlights the extreme temperatures as a decisive factor. According to the Danish Meteorological Institute (DMI), the average temperature in January was -0.6 degrees, which is a significant difference compared with January 2025, when it was 2.8 degrees. The lowest recorded temperature this year reached -19.4 degrees.

“We have had a really cold start to the year across Europe. This means that we have used more electricity to heat our homes and businesses than usual. At the same time, we have – atypically for the season – had very little wind,” says Mads Brøgger, director of Norlys’ energy business.

Despite the high electricity prices, Danish consumers have not felt the full financial burden thanks to a significant tax reduction. From the turn of the year, the electricity tax was lowered to the EU’s minimum rate of 0.8 øre/kWh before VAT. According to Norlys, this has made January around DKK 300 cheaper for an average family with an annual consumption of 4,500 kWh.

Andel Energi also highlights the tax cut as crucial. “If the electricity tax from the new year had not been reduced from 90 øre to 1 øre per kilowatt-hour, January would therefore have been the most expensive month for Danish electricity customers in almost a year,” says Josefine Walter, commercial director at Andel Energi.

In addition, all three companies point to large price fluctuations throughout the day. According to Andel Energi, electricity prices peaked on 20 January at 206.3 øre/kWh, corresponding to approximately DKK 3.24 including taxes and tariffs. Prices are typically highest during the “cooking peak” between 5 p.m. and 9 p.m., while they can be significantly lower at night.

“The clear recommendation is to keep an eye on prices and use electricity when prices are lowest. In winter, this is typically at night,” says Troels Skipper from OK. Mads Brøgger from Norlys adds: “By thinking a little about one’s consumption, you can reduce your electricity bill even further.”

The energy companies recommend, among other things, charging electric cars at night or investing in intelligent solutions such as home batteries that can store electricity when it is cheapest and use it later when prices are high.

January 2026 has thus underscored the need for flexible energy habits and a continued focus on how households can handle a more volatile electricity market.

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