Energinet is now changing the method for calculating reduced electricity tax for electric heating customers, after the Danish Tax Agency stated that the previous practice was not in accordance with the intentions of the Electricity Tax Act. The change applies to all electric heating customers, regardless of supplier relationship. Energinet writes.
Previously, the reduced electricity tax was distributed evenly over the year, but the Danish Tax Agency has assessed that this was not in accordance with the intentions of the law. Energinet is therefore changing the practice so that electricity consumers must first pay full electricity tax on the first 4,000 kWh, and only then will the reduced tax apply to the rest of the consumption in the calendar year. The total electricity tax will not change, but the reduction will now be distributed differently over the year.
For electricity consumers with electric heating and reduced electricity tax, this change will typically result in higher electricity bills in the first part of the year and lower bills in the last part. The change comes into effect now, and electricity consumers should expect a subsequent regulation from their electricity company in the coming months.
Background
In connection with the energy crisis in 2022 and 2023 and the Danish Parliament's temporary reduction of the electricity tax in the first half of 2023, Energinet received several inquiries that the current calculation model was not in accordance with the intentions of the law. Energinet therefore contacted the Danish Tax Agency to clarify how the calculation should be carried out correctly.
In the autumn of 2024, the Danish Tax Agency decided that the end customer must always pay full electricity tax on the first 4,000 kWh, and then a reduced tax on the rest. Energinet has now updated the calculation model in DataHub and implemented the change retroactively from 1 January 2023.
What does this mean for electric heating customers?
From 2025, electric heating customers will experience larger settlements in the first part of the year, as they will only receive reduced tax on consumption above 4,000 kWh. For 2025, all electric heating customers will receive a correction settlement from their electricity company for the first part of the year.
For 2023, customers with electric heating who have consumed more than 2,000 kWh up to 30 June 2023 will receive a reduced electricity tax payment. The changes also apply to customers with annual netted systems that have a calculation period that does not follow the calendar year.
Recalculation
Energinet DataHub expects to have recalculated all affected calculations before the end of April, after which the new calculations will be sent to the electricity companies. The electricity companies will then send corrected calculations to the end customers.
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