Folketinget has passed a law cutting the general electricity tax to the EU minimum rate for 2026–2027 to ease household costs.
Denmark’s Parliament (Folketinget) passed Bill L 24 on 16 December 2025, reducing the general electricity tax to the European Union minimum rate for 2026 and 2027.
The move follows the government’s 2026 Finance Bill and aims to provide Danes with greater disposable income amid rising food prices.
Under the legislation, the electricity tax will drop from the current 72.7 øre per kWh to 0.8 øre per kWh, representing a 71.9 øre per kWh reduction. Households using electric heating, including heat pumps, will benefit from the EU minimum rate on consumption exceeding 4,000 kWh. VAT-registered businesses are unaffected, as they can already claim refunds down to 0.4 øre per kWh.
The Act also adjusts the calculation method for electricity tax repayment and sets fixed electricity values per kWh in the Assessment Act for the two-year period. The law takes effect on 1 January 2026.
Earlier, Denmark’s Minister for Taxation submitted Bill L 24 to parliament on 8 October 2025.
