320 jobs secured in Denmark at Holmegaard Glass Factory due to abolition of public levy

Abolition of the PSO (Public Service Obligation) levy saves the local companies to employ many jobs like Holmegaard Glass Factory in Næstved.

If it were not for the abolition of the PSO levy, an investment in glass work industry around Greater Copenhagen would also slowdown and thereby many jobs would have disappeared from small counties like in Næstved.

A broad majority agreed in the Ministry of Finance to abolish the PSO levy, says Finance Minister Claus Hjort Frederiksen. – It is a balanced solution to the abolition of the PSO and especially the financing. It involves a mosiak of financing elements, says Minister of Finance.

The new system will now make a saving of 13 million kroner a year for investment in the new glass furnace for the company Holmegaard, which is now changed to Ardagh Glass Holmegaard A / S.

– If the PSO levy had not been removed, the investment probably gone to one of the company’s foreign sister companies, says CFO of Ardagh Glass Holmegaard A / S Kim Holmberg.

The company transform household- recycled glass in Holmegaard outside Næstved, which is owned by the Irish Ardagh Group.  The glassworks is the only thing that remains throughout Denmark, and is Naestved’s largest private employer.

About PSO charge

  • PSO stands for Public Service Obligation and the levy businesses and private consumers of electricity contributes to the green transition.
  • In November last year reached the blue parties to an agreement with S, R and SF to abolish the tax, which has had its current form since 2005.
  • PSO funds would cover the costs of new energy technologies that are not yet able to cope at market conditions.

How the elimination of PSO would be financed

The political parties had decided broadly during last November for the energy agreement to finance PSO elimination, which are as follows:

– Pool for business “VE to process” of 2.1 billion. kr. abolished from 2017.

– The target for renewable energy in total savings of 1.7 billion. kr. in the period 2019-2025

– The remaining pool of 22 MW experimental wind turbines abolished.

– The deposed frame for easing of business at 200 million. kr. annually from 2017 used as part of the financing of the abolition of the PSO levy.

– Green check reduced by 230 kr. In 2018, rising to 380 kr. In 2025. In 2025, green check amount to 495 kr. Additional green check is reduced in parallel. Addendum to green check for those on low incomes remains unchanged.

– Bottom tax rate increased by 0.05 percentage points in 2018, rising to 0.09 percentage points in 2022 and onwards. The tax ceiling for personal income increased in parallel.

Source: Energy Supply and Climate Ministry

Executive/royal family with two children in home ownership: Will get 500 kroner more in disposable income in 2018 – and 2500 kroner by 2025.

A highly trained salaried family: Will get 1,700 kroner more in disposable income in 2018 – and 5200 kroner by 2025.

A lone person without children: Will get 100 kroner more in disposable income in 2018 – and $ 800 by 2025.

A lone benefit claimant without children: Will get 100 kroner more in disposable income in 2018 – and 700 crowns by 2025.

A pensioner in rented accommodation: Will get 600 more in disposable kroner in 2018 – and 1700 kroner by 2025.

A single pensioner * in rented accommodation: Will get 400 kroner more in disposable income in 2018 – and 1200 kroner by 2025.

* Retirees and pensioners exempt addition to cuts in green check in the agreement.

Source: Ministry of Finance.