The Danish government has announced a significant reduction in electricity tax, set to take effect in 2026 and 2027. The tax will decrease from the current 72.2 øre to the EU’s minimum tax rate of 0.8 øre.

The initiative aims to alleviate financial pressure on Danish citizens amid rising food prices. The government intends to provide more disposable income for households.

The estimated annual savings vary depending on household type. A single welfare recipient in an apartment is projected to save 1000 kroner per year. Pensioner couples residing in a house can anticipate annual savings of 2675 kroner. Working families living in a house are expected to save 3975 kroner annually on their electricity bills.