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ARTICLE · 01 AUGUST 2023

New Act To Introduce A Cap On Electricity Production Revenues

Bech-Bruun
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On 27 April 2023, the Danish Parliament adopted a new Act, introducing a cap on revenues from electricity production (the "Market Revenue Cap Act" (indtægtsloven)).

DenmarkEnergy and Natural Resources
Johan Weihe
Johan Weihe
Birka Wendy Mouritzen
Birka Wendy Mouritzen
Agnete Nordentoft
Agnete Nordentoft
Maria Kragelund Axelsen
Maria Kragelund Axelsen

On 27 April 2023, the Danish Parliament adopted a new Act, introducing a cap on revenues from electricity production (the "Market Revenue Cap Act" (indtægtsloven)). The Market Revenue Cap Act is to ensure the implementation in Denmark of the Council Regulation on an emergency intervention to address high energy prices.

Læs på dansk her.

The Council Regulation (EU) 2022/1854 of 6 October 2022 on an emergency intervention to address high energy prices (the "Emergency Intervention Regulation") provides a mandatory EUR 180/MWh cap on market revenues from electricity produced in the period from 1 December 2022 to 30 June 2023. This temporary emergency intervention has been prompted by the soaring energy prices that have challenged and adversely affected not only consumers but also the European Union's economy, thus calling for measures to restrict electricity producers' surplus revenues temporarily.

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