The scope of activities for players in the electricity market is based partly on the provisions of the Danish Electricity Supply Act and partly on the framework provisions laid down by Energinet.dk (market regulations).
Transmission system operator
As transmission system operator (TSO) Energinet.dk is responsible for the Danish electricity system. It is our responsibility to ensure that the physical balance in the electricity system is maintained. We are also responsible for the devlopment of rules which provide the settings for a well-functioning electricity market, with regard to the wholesale as well as retail.
Balance responsible parties
Production, consumption and trade activities must be assigned to the balance responsible parties (BRP) who must enter an agreement with Energinet.dk to assume responsibility for the specific activities, ie. production, consumption or trade. Upon entering the agreement on balance responsibility the BRP assumes the financial responsibility for the imbalances they may incur. For a detailed list of names of balance responsible parties please see "Market players" on the right-hand menu.
Electricity suppliers (local electricity trading companies)
The electricity supplier concludes contracts for the supply of electricity with the end users. The electricity supplier buys electricity either at a power exchange (eg. Nord Pool) or directly from an electricity produer, or from another supplier. The end user has the right to change from one electricity supplier to another supplier; by changing supplier the end user helps promoting the market competition.
Companies with a supply obligation
Authorised companies supplying end users who have not exercised their right to choose an electricity supplier. The amount collectred by the companies from the end users is regulated by the Danish Competition Authority in order to ensure fair prices.
Grid companies
Just like Energinet.dk is responsible for the transmission grid, the grid companies are responsible for operating the distribution network and for metering data on production as well as consumption. The grid companies also have the obligation to keep track of which BRP each end user has chosen, and to supply Energinet.dk with information on metered data for consumpetion and production per BRP; these data are used by Energinet.dk for settlement of imbalances. All grid companies operate as monopolies.
The producer
The producer produces electricity and sells the electricity either directly to an electricity supplier or to Nord Pool. The producer sells electricity to or buys electricity from Energinet.dk in the regulating power market. This enables Energinet.dk to maintain and create balance in the electricity system and ensure the security of supply.
End users with grid access
The end user consumes the electricity bought from the electricity supplier. As a result of the liberalisation, all end users have access to the grid and are therefore free to choose their own electricity supplier. Just like production, consumption can also be used in the regulating power market in order to create balance in the electricity system.
Nord Pool - the Nordic power exchange
Nord Pool Spot is the Nordic power exchange owned by Energinet.dk and the other Nordic TSOs. The power exchange has two market places for electricity trading: Elspot and Elbas. Trade on Elspot is based on the auction principle. Once a day Nord Pool matches bids and offers in order to calculate the market price in consideration of limitation in the capacity in the transmission grid. On Elbas players trade to obtain balance when Elspot is closed. Nord Pool Spot also operates an exchange for financial trading/hedging