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The Danish Energy Regulatory Authority DERA

The Danish Energy Regulatory Authority (DERA) regulates the Danish markets for electricity, natural gas and district heating. 

In the electricity market, the regulation focuses on the network companies. However, DERA also sets the allowed price for electricity companies with an obligation to supply (i.e. the companies that supply customers who have not chosen their own supplier in the free market). 

In the natural gas market, the regulation also focuses on the network companies. Natural gas can be stored in underground storages, and DERA also controls the prices and access conditions of the two Danish storage facilities. Finally, DERA sets the price for natural gas supplied by the natural gas companies with an obligation to supply (see also above). 

The network companies are natural monopolies, and DERA focuses on ensuring that these companies are run efficiently and with a high degree of consumer protection. 

In the district heating market, both production and network companies are monopolies and regulated as non-profit undertakings. DERA monitors their prices and delivery terms, and DERA takes regulatory action if the prices and terms of the network companies are not in line with the non-profit regime – or if they are unfair in any other way. 

The board of DERA consists of a chairman, six ordinary members, and two alternates. All board members shall neither seek nor follow any instruction from any public or private entity. The Minister of Climate and Energy formally appoints the members of the board, but the Minister has no powers of instruction in relation to the board members.  

The secretariat consists of three individual energy divisions (natural gas, electricity, and heating). The secretariat of DERA is managed by Director General Finn Dehlbæk.  

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