Denmark Reduces Electricity Taxes

In response to the energy crisis, Denmark is drastically reducing taxes on electricity. This measure will cost 470 million euros.
danemark taxe électricité_energynews

Denmark will drastically reduce taxes on electricity for several months as part of a “winter aid” package introduced Friday in response to soaring energy prices.

In line with what the government announced last week, this plan also includes caps on electricity, gas and heating bills, with a system of deferred payments above a certain amount.

In addition to this flagship measure, a drastic reduction in the electricity tax paid by households was introduced on Friday. This will be reduced for the first half of 2023 to 0.008 Danish kroner per kilowatt hour, compared to the current 0.697.

The tax rebate is expected to cost the public purse about 3.5 billion kroner (470 million euros), according to the presentation of the plan published Friday.

Child benefit will receive a one-time boost of 660 kroner in January.

With elections due by June at the latest, the plan was approved by a large majority, including Prime Minister Mette Frederiksen’s Social Democrats and her three left-wing allies in parliament, but also by a large part of the right-wing opposition.

Denmark had already decided at the beginning of September on energy saving measures with reductions in heating in public places, and financial guarantees in case of cash flow difficulties for companies in the energy sector.

Deprived in part of Russian gas due to the war in Ukraine and with an electricity market already under stress before the conflict began, Europe is preparing for a tense winter from an energy point of view in many countries.

Wholesale prices on the electricity and gas market have increased more than fivefold over the past year in most European countries. Even before this crisis, Denmark was the EU country where electricity was the most expensive for consumers.

Dans cet article :​
Articles qui pourraient vous intéresser ​

Europe’s largest gas supplier declares pipeline safety checks trouble-free

Recent safety inspections of Norway’s offshore pipelines, carried out in the wake of the Nord Stream pipeline explosions, have produced reassuring results, according to Europe’s leading gas supplier. However, despite this confirmation, the risks remain, raising concerns about the safety of these crucial infrastructures.

EDF Renewables Ireland and Simply Blue Group sign partnership deal on Western Star and Emerald floating offshore wind projects in Ireland.

EDF Renewables Ireland and Simply Blue Group join forces to develop floating wind projects in Ireland, as part of a strategic collaboration to meet the government’s ambitious renewable energy targets. These promising projects open up new prospects for offshore wind energy and strengthen the position of both partners in the Irish energy market. By combining their expertise and commitment to the energy transition, they aspire to generate a significant amount of clean electricity to meet the needs of millions of Irish households, while helping to protect the environment and coastal communities.

France to supply nuclear fuel to Slovakia

Slovakia is seeking to reduce its dependence on Russia for nuclear fuel supplies. With this in mind, the French company Framatome has undertaken to supply nuclear fuel similar to that manufactured by Russia, to power Slovakia’s Soviet-designed nuclear power plant. This initiative is part of an international context in which many European VVER plant operators are seeking to develop a sovereign European energy solution.

Stellantis to supply Mulhouse plant with geothermal energy

Stellantis embarks on a promising initiative in partnership with Vulcan to integrate renewable geothermal energy at its Mulhouse plant. This collaboration aims to reduce the plant’s carbon footprint while exploring the possibility of extracting lithium from geothermal water.

TotalEnergies: request to the courts to suspend future fossil fuel projects

Oil giant TotalEnergies is facing a coalition of NGOs and local authorities, including the cities of Paris and New York, calling for a halt to all new hydrocarbon projects worldwide. This request, deemed “unfair” by TotalEnergies, is a provisional measure pending the court’s ruling on the obligation to align the Group’s climate strategy with the Paris Agreement. The coalition cites scientific and institutional reports in support of its claim, while TotalEnergies defends its climate strategy and warns of the consequences of suspending the projects. This case illustrates the growing tensions between the oil industry and climate advocates, and could set a major legal precedent.