Danish Government Cuts Energy Bill for Businesses  

2014.07.16

In a politically broad agreement in the Danish parliament, the major parties have agreed to drastically reduce a set of energy taxes for companies, known as PSO-taxes.

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Denmark’s focus on fostering a shift to a green economy led to the establishment of the PSO-tax in 2012. PSO stands for Public Service Obligation and is a tax that is levied through the energy bill that goes to different forms of support of renewables and cogeneration. The new agreement will significantly lower the POS for businesses, and thereby reduce the cost of doing business in Denmark.

”The Danish Government has listened to businesses without compromising our green ambitions. This is why we are now sending a remarkably lower electricity bill to both businesses and consumers, whilst continuing the transition to a green economy” says Rasmus Helveg Petersen, Danish Minister for Climate and Energy.

The new reductions of the PSO-tax will until 2020 add up to a combined 13.2 billion Danish Kroner (approximately 2.41 billion US Dollars). The agreement contains both general reductions of businesses’ PSO costs, as well as 1.5 billion Danish Kroner (approximately 280 million US Dollars) in targeted reductions for the businesses with the highest PSO costs.

”This agreement effectively lowers the cost of doing business in Denmark. It is a reasonable step that will keep Denmark as the best place in the world to locate your business. That the improved framework conditions for businesses don’t hurt Denmark’s high-set green ambitions constitutes a win-win” says Commercial Director for Invest in Denmark, Thomas Højlund Christensen.

You can read the PSO reduction agreement (in Danish) here

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