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DI wants lower electricity tax to electrify Denmark

Lower electricity taxes, expansion of the business pool and seven other recommendations from DI are intended to ensure a more electrified Denmark.
28. NOV 2024 11.17

Electrification must be accelerated if Denmark is to achieve its climate goals and ensure the country's security of supply. Unfortunately, development is currently far too slow. According to the Confederation of Danish Industry (DI), this is due to a number of barriers that must be cleared away. This can be done by following nine specific recommendations in a new proposal.

 - We will change taxes, promote investments and generally just ensure that everyone has the best conditions to actually electrify, says Troels Ranis, Director of DI Energi.

The proposal includes, among other things, a tax package with reductions in the general electricity tax by 10 øre/kWh in addition to the already agreed reductions. In addition, an earlier-than-planned reduction in the electric heating tax and an expansion of the business pool, which should make it more attractive to choose electrification solutions.

- It must of course be economically viable to switch energy consumption to green electricity. Our tax package will actually reduce inequality in society, as the electricity tax currently affects people socially unevenly. For example, a family of four with standard consumption will be able to save approximately DKK 560 annually on their electricity bill, while a family with a heat pump can look forward to savings of well over DKK 1,100 annually, says Troels Ranis.

The Energy Director also pointed out that there is a lack of a comprehensive and clear plan for the development of the electrification of Danish energy consumption that can contribute to promoting new investments in the use of more green electricity.

Therefore, DI calls on the government to prepare an electrification action plan that will promote investments in increased electrification and ensure ongoing monitoring of the development of the electrification rate in Denmark.

- For far too many years, we have talked about the importance of electrification throughout Denmark, and now we are delivering a roadmap that can actually make things happen in reality. Danish business is ready to deliver, and I hope that politicians are too, says Troels Ranis.

The nine recommendations from DI are as follows:

  1. Tax package on electricity and electric cars.
  2. Expansion of the business pool.
  3. Get the market for electric trucks going.
  4. Political commitment to the electricity grid on time.
  5. Create transparency around connection times and processes.
  6. Remove over-implementation of EU regulations that stand in the way of rapid expansion.
  7. Create a plan for robustness in the electricity system.
  8. Create a stable and reliable electricity supply.
  9. Create an electrification action plan.

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https://www.doi.dk/en/havenergi/artikel/di-vil-have-lavere-elafgift-for-at-elektrificere-danmark

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