There was, as usual, a big party when the clock struck twelve at midnight on New Year's Eve. However, it was probably not a higher tax that the Danes were celebrating, and the increase that came into effect on the night of Monday would probably have ruined the party for very few people.
Concretely, the entry into 2024 meant that an increase in the electricity tax from 69.7 øre/kWh to 76.1 øre/kWh came into effect. For an average household, this means an extra expense of DKK 321 per year and a total of DKK 3,806 annually for electricity tax, Green Power Denmark states in an announcement.- There are some natural reasons why the electricity tax increases. But there is nothing natural in the fact that we in Denmark tax the green power, which was the black. A high electricity tax sends the wrong signal at a time when we have to electrify all parts of society for the sake of the climate, says Martin Ingerslev, chief economist at Green Power Denmark.
Besides a real increase, the main reason for the higher electricity tax is indexation, where you can say, somewhat simplistically, that the electricity tax is also affected by inflation. The reason why taxes are indexed is because they want to maintain the level of the tax in relation to goods and purchasing power, explains the trade association, which is to that extent annoyed that Denmark has a European record for electricity tax.
- With the increase, Denmark cements its dubious European record in electricity tax. It is especially bad news for the families who have the least. A low electricity tax will reduce inequality in our society, says Martin Ingerslev.
Want to wave goodbye to tax
Green Power Denmark's chief economist is, however, pleased that political agreements mean that consumers can look forward to a gradual lowering of the electricity tax in the future, so that it lands at 60 øre/kWh in 2030. But according to Green Power Denmark, this is not enough .
The green business organization calls on the government and the Folketing to lower the electricity tax by approximately ten øre per kilowatt-hour per year, so that in 2030 it ends up at the EU's minimum level of 0.8 øre/kWh.
- It is good that the politicians take chunks of the electricity tax. But they are small eaters. We would like to see an end date set for the electricity tax. Because in 2030, all the electricity we consume in Denmark will come from renewable energy. And we must remember that electricity produced from fossil fuels is already covered by the EU's quota market, and from 2025 it will also be subject to a Danish CO2 tax, says Martin Ingerslev, chief economist at Green Power Denmark.
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