Bill L 24 proposes cutting the general electricity tax to the EU minimum of 0.8 øre per kWh for 2026 and 2027.
Denmark’s Minister for Taxation submitted Bill L 24 to parliament on 8 October 2025, aiming to lower the general electricity tax to the EU minimum rate of 0.8 øre per kWh for 2026 and 2027.
The proposal, following the government’s 2026 Finance Bill, is intended to increase household disposable income amid rising food costs.
At present, the general electricity tax stands at 72.7 øre per kWh for households, non-VAT-registered businesses, the state, and municipalities. The proposed cut would reduce this rate by 71.9 øre per kWh, aligning it with the minimum tax on electricity for non-business consumption under the Energy Taxation Directive (Council Directive 2003/96/EC of 27 October 2003).
Households with electric heating, including heat pumps, currently pay the EU minimum rate of 0.8 øre per kWh for electricity consumption above 4,000 kWh. Under the new bill, they will benefit from the reduced tax on consumption up to 4,000 kWh.
VAT-registered businesses, who can already reclaim electricity tax down to 0.4 øre per kWh, would see no change.
The legislation is set to take effect on 1 January 2026.
Earlier, the Danish Ministry of Taxation launched a public consultation on 4 September 2025 regarding a proposed law to reduce the general electricity tax to the EU minimum of 0.8 øre per kWh for the years 2026 and 2027.
