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. 

“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?