Roles & responsibilities
Who does what in the Danish electricity market? Learn about the individual player's basic tasks in the market.
Energinet is Denmark's TSO, i.e. the enterprise responsible for the operation of the transmission grid and the electricity system in Denmark. Energinet's core service is security of supply; in other words ensuring that the Danish population is supplied with electricity now and in the future. In practise this is done by ensuring balance between consumption and generation in the electricity system around the clock, all year.
It is also Energinet's responsibility to set the framework for a well-functioning electricity market that ensures fair prices for both consumers and producers and promotes climate-friendly energy solutions.
On the power exchanges, the price of electricity is fixed by the hour on the basis of supply and demand. This market model ensures that while taking congestion in the transmission grid into consideration, electricity is generated from the cheapest production unit in order to match the buyers' bid.
Balance responsible player
Balance responsible players buys and sell electricity on power exchanges on behalf of electricity suppliers and plant owners. On a daily basis, they submit plans to Energinet on the electricity expected to be generated and consumed in the next 24 hours by the producers and customers for whom they are balance responsible in the next 24 hours.
The balance responsible players are financially responsible to Energinet for imbalances between expected and actual generation and consumption in the day of operation.
Actually, it is not possible to predict a day's generation and consumption to perfection. The imbalance, which most frequently is between expected and actual generation and consumption during the day of operation, will be counterbalanced by Energinet. The cost of this will be invoiced to the balance responsible players who are responsible for the imbalances.
Plant owners sell the electricity generated at the plant to the electricity suppliers. In Denmark, there are around 100,000 large- and small-scale electricity-generating facilities. Approx. 60 per cent of the electricity generation comes from sun, wind, biogas and water. The remaining 40 per cent is generated at central power stations.
The grid companies own the network from the transmission grid to the consumer. Grid companies have monopoly on transporting electricity in their geographically demarcated grid area. It is the grid companies' responsibility to measure consumption and generation of electricity in their grid area. The task to collect, validate, send and receive meter data can be delegated to independent metering point administrators.
The grid companies are also responsible for payment of electricity taxes to SKAT (central Danish tax administration) of the amount of electricity consumed in the grid company's grid area.
Electricity suppliers must pay the grid companies for transporting electricity to the customers. Danish Energy Regulatory Authority regulates the grid companies in order to ensure that the price they charge is proportionate to the costs associated with the operation of the network.
Operation of the network comprises tasks, such as the connection of new customers, specification of electricity consumption as well as development and maintenance of the physical plants. Grid companies are also responsible for a number of ad hoc tasks, such as re-establishment of live cables that have been damaged and establishment of live cable at new plants.
The electricity suppliers are the customers' primary contact to the electricity system. They buy electricity through a balance responsible party on power exchanges or directly from plant owners and sell it to the customers. Electricity suppliers must pay the grid companies for transporting electricity to the customers and to transmit meter data for settlement purposes.
As the electricity supplier, you are among other things responsible for the following:
- That customer information in DataHub is correct (eg electricity suppliers register change of customers and changes to customer relations at metering points)
- Collecting payment for both consumption, duties, tariffs and transport at the customer in one single invoice. Grid companies and Energinet will invoice the electricity supplier charges and the use of grid.
- Payment for consumption on the metering points the electricity supplier is registered in the DataHub.
Electricity suppliers are obliged to, against payment, to supply all household customers with electricity.
Energinet carries out four annual random inspections at electricity suppliers to control that an agreement has been entered for the recorded changes of supplier.
Metering point administrator
Metering point administrators carry out the task of collecting, validating and submitting meter data to DataHub on behalf of the grid companies and can receive meter data and calculated time series from DataHub. The grid company is always responsible for the metering point administrator.
Third parties, eg electricity agents and energy consultants, will find the best offers for the custom-ers by constantly monitoring the different products on the market and inviting quotations from the country's electricity suppliers. By means of an electronic power of attorney, the customers can grant electricity agents and energy consultants access to own data in DataHub.
The customer buys electricity from the electricity supplier and pays - in addition to consumption - also all duties and taxes, subscriptions, tariffs, etc. to the electricity supplier. In order to ensure supply of electricity, the customer must actively choose an electricity supplier. The customer contacts its electricity supplier, if there are any problems or questions.