Advertisement

Danish energy companies ordered to return 1.2 billion kroner

Ritzau/The Local
Ritzau/The Local - [email protected]
Danish energy companies ordered to return 1.2 billion kroner
The Danish tax ministry says it will give money from caps on energy companies back to consumers following forthcoming political negotiations. Photo: Bo Amstrup/Ritzau Scanpix

Energy companies must turn over 1.2 billion kroner of the last year’s windfall to the Danish treasury, according to the country’s tax minister.

Advertisement

The money comprises part of the additional turnover raised by energy companies as a result of increased prices related to the energy crisis in 2022.

At least 1.2 billion of the extraordinary profit must be returned to the Danish state, tax minister Jeppe Bruus told business news outlet Finans. 

Advertisement

“Overall in 2023 there will be proceeds of 1.2 billion kroner. We want to return that money to consumers through the forthcoming negotiations on inflation relief,” Bruus said.

The minister meanwhile recognised that the 1.2 billion kroner sum is a fraction of what was expected to be recovered, which had been estimated at more than 10 billion. 

The tax ministry says it expects 800 million kroner from fossil fuel companies and 400 million kroner from electricity companies to be returned to the state through different regulations applied to either sector.

READ ALSO: Danish regulator says  electricity companies earn ‘excessive’ profits

In September, the European Commission said plans to cap to energy company profits as well as levy collections from fossil energy companies would raise 140 billion euros.

The policy was a key element of the Commission’s measures to relieve high energy prices for consumers.

The revenue will be used to assist consumers and small businesses that are struggling to pay bills.

READ ALSO: How much will energy cost in 2023 in Denmark compared to 2022?

More

Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also