Denmark’s household and industry electricity prices are high, yet its spot market prices are low. Is this proof that green energy is cheap, but taxes make electricity costly?
Denmark’s household and industry electricity prices are high, yet its spot market prices are low. Is this proof that green energy is cheap, but taxes make electricity costly?
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The long term tax difference is that Danish retail electricity rates are high, but industrial electricity rates are low. It used to be “something something green energy costs more something” but now it’s just a tax.
This is, effectively, a subsidy of energy costs for industry in Denmark. Any lack of taxation for some consumers of goods or services compared to other consumers is a subsidy in economic terms.
The proof that Green energy is cheap, is the fact that whenever it produces, prices fall.
Look at Finland, that have to throttle down their brand new Nuclear powerplant at the moment, because cheap Windpower is outcompeting it.
But yes, the discrepancy between the wholesale and consumer prices are a good example of why people are confused about electricity prices, taxes, tariffs etc.
France has some of the lowest consumer prices in Europe, despite having some of the highest wholesale prices, this is because of subsidies.
Put simply: No.
With our high share of renewable energy and without demanding regular deliveries from suppliers, 2022 serves as a grim warning of what lies ahead as energy demand increases and our own energy security is being outsourced to foreign nations.
The more this trend continues, the more exposed we are to catastrophically high prices and, in the worst case, blackouts and brownouts.
And here’s the worst part: the green energy providers capitalize on our lack of energy supply security.
Every time the wind isn’t blowing, we have to pay the spot price on the NordPool, and it’s expensive.
Why establish an enterprise in 2023 that sells stable energy when that parameter significantly increases costs, thereby eating into profits, when you can simply deliver as the wind blows, literally?
It is us as citizens who end up with the high energy bill while the green providers laugh all the way to the bank.
A solution? Simple: demand that they have satisfactory amounts of backup. And, of course, nuclear power.
In this thread I cover the nuances of why danish citizens pays the undisputed highest electricity prices in the world:
https://www.reddit.com/r/Denmark/comments/13l2ewm/danske_elpriser_h%C3%B8jest_i_europa_di/?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=2&utm_term=1
Shhhhh… This doesn’t help the newspaper and the government to blame energy trading for that.
Yes.
Taxes and tariffs are about 75% of your electric bill.