Denmark tops EU for energy fees

VAT and taxes account for 68 percent of the energy bill

When it comes to its citizens paying high fees for their energy consumption, no nation in the EU can compete with Denmark.

Upwards of 70 percent of the energy bill in Denmark consists of taxes and fees, which tops the EU and is a massive problem for the country’s ambitious green transition aim.

“We aren’t electrifying our consumption in the areas we should, and we are hanging on to fossil fuels in the transportation sector and for our heating needs for far too long,” Lars Aagaard, the head of energy advocate organisation Dansk Energi, told Metroxpress newspaper.

“And we are not getting the full potential out of our fantastic ability to produce sustainable energy for our electricity grid. That’s bad for our green transition and it also makes us poorer.”

READ MORE: Wind energy in Denmark breaking world records

Lacking green incentive 
The issue surfaced after Eurelectric, the union for Europe’s energy industry, produced a report that showed that the actual energy price in Denmark only accounted for 32 percent of the final energy bill received by customers in 2015.

The report (here in English) showed that VAT and an energy tax accounted for 59 percent of the bill, while the remaining 9 percent made up the PSO tax, which goes to supporting sustainable energy.

Aagaard contended that Danes who have electric heating pumps in their homes are taxed six times as much for their energy compared to Danes who use oil burners.




  • Three new countries recognise Palestine as an independent state – Denmark holds back

    Three new countries recognise Palestine as an independent state – Denmark holds back

    Norway, Spain and Ireland have announced that they will formally recognise Palestine as a state. A furious Israel has recalled its envoys from Dublin, Oslo and Madrid for emergency consultations. Denmark says it will only recognise Palestine under a two-state solution.

  • Digitization is the secret ingredient in Chinese restaurateur’s growth adventure

    Digitization is the secret ingredient in Chinese restaurateur’s growth adventure

    Publisher Jesper Skeel and Korean BBQ restaurant chain owner Zen discuss the ups and downs of independent entrepreneurship and how to crack the Copenhagen market, from both an international and Danish perspective.

  • Pro-Palestinian demonstrations divide Copenhagen society

    Pro-Palestinian demonstrations divide Copenhagen society

    As popular protests of the Israeli offensive in Gaza erupt around the world and in the media, from university campuses to the streets of major cities, discord is escalating between demonstrators, the general public, authorities and politicians.

  • Huge fire at Novo Nordisk – building “cannot be saved”

    Huge fire at Novo Nordisk – building “cannot be saved”

    A fire broke out at a Novo Nordisk site in Bagsværd on Wednesday morning. There have been no casualties, but the fire is “extensive and spreading”, and Novo’s administrative building “cannot be saved” say emergency services.

  • Denmark leads 15 member states in call to outsource EU migration policy

    Denmark leads 15 member states in call to outsource EU migration policy

    Just one day after the EU finally landed its New Pact on Migration and Asylum following four years of tough negotiations, a group of 15 member states, led by Denmark, issued a joint call for greater efforts to outsource migration policy and  prevent migrants from arriving at EU borders in the first place.

  • How to lead Danes IV – Cultural Bypassing

    How to lead Danes IV – Cultural Bypassing

    Many of us Danes, despite being well-educated and well-travelled, often lack experience in navigating cultural differences at work. This can lead to ‘cultural bypassing’, where we believe we are at a level of enlightenment where we no longer are burdened by the risk of making cross-cultural mistakes. As their manager, you can help your Danish colleagues by acknowledging cultural differences in the workplace.