The government, together with a broad majority consisting of the Danish Democrats, the Socialist People's Party, the Liberal Alliance, the Conservative People's Party, the United Unity Party, the Radikale Venstre and the Alternative, has entered into an an agreement to change the tax rules for the so-called long-term price hedging contracts.
Long-term price hedging contracts are used, among other things, to create investment security in large green projects such as solar and wind farms.
The current offshore wind tenders, for example, are based on a support model with a long-term price hedging agreement. The agreements reduce the risk of fluctuations in electricity prices and thus provide companies and investors with greater security.
Today, certain long-term price hedging contracts according to the inventory principle, which means that companies must pay tax on value increases before the income is received - and this can create liquidity problems. The political agreement changes the rules so that only the actual payments under the contracts are taxed.
- I am pleased that there is broad agreement to remove yet another barrier to more green electricity in Denmark. The agreement helps to provide predictability for companies that want to invest in more renewable energy. In addition, the agreement has the derivative effect that potential bidders for the ongoing offshore wind tenders will have greater security and will thus hopefully be able to submit better bids, says Minister of Climate, Energy and Utilities Lars Aagaard (M).
The change does not affect the total tax payment over time, but only the time at which the tax is paid. The Ministry of Taxation will submit the bill for consultation as soon as possible, the press release says.
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