Denmark settles deal on PSO scheme for green energy

A majority in the Danish Parliament has reached agreement regarding the country's public service obligation (PSO). The tariff will be phased out and integrated into the national budget instead, while the subsidy scheme to support green energy (VE) will be discontinued.
Photo: /ritzau/Jens Dresling/
Photo: /ritzau/Jens Dresling/

Thursday night local time, a majority in Denmark's Parliament reached final agreement on green energy funding to abolish the public service obligation (PSO). As expected, the PSO will go from a consumer tariff to a payment over taxes, which according to plan will happen gradually ahead of 2022. The funding will come from measures such as abolishing the current subsidies for renewable energy (called VE in the Danish system), increasing taxes in the lowest tax bracket taxes, and also removing certain tax deductibles related to green energy funding.

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