Drastically reduced energy tax in Denmark
A majority in the Danish parliament has supported an agreement on a price ceiling for electricity, gas and district heating. The package also includes a temporary but drastic reduction in the energy tax, down to the EU’s minimum level.
– We want to give the Danes a helping hand in difficult times, says Danish Finance Minister Nicolai Wammen, according to the Bloomberg news agency.
At the same time, he flags that there may be more support measures, as the situation this winter looks to be getting worse.
An increase is expected in Sweden
According to the proposal, the energy tax will be reduced to DKK 8 per kilowatt-hour in the first half of 2023. This can be compared to today’s level of DKK 69.7.
In Sweden, the corresponding tax level is 36 öre per kilowatt-hour, and before the turn of the year, an unusually large increase is expected, when the level is adjusted for inflation.
The Danish price ceiling for electricity, gas and district heating is in practice an opportunity to postpone part of the payment of the bills if the prices pass certain thresholds. The interest on the postponement is set at 2 percent and electricity customers decide for themselves whether they want to use this opportunity, reports the Danish public service channel DR.dk.
Cost: NOK 3.5 billion
The threshold for deferring the electricity bill is 2:18 Danish kroner per kilowatt hour.
The reduced electricity fee is estimated to cost the Danish state 3.5 billion Danish kroner in lost revenue.
The settlement also includes an increased child allowance from the turn of the year. The Norwegian Parliament is expected to vote on the proposal next week.
The measures are partly financed by a tax of 15 percent on dividends on shares owned by state-owned foreign investors, which will collect 350 million Danish kroner.
