Electricity tax and tax brackets

Electricity tax is collected by the electricity distribution company and paid straight to the state. Electricity tax is levied on the basis of consumption, and the amount is stated on the bill as a similar component to the electricity distribution fee. There are two electricity tax brackets.

Electricity tax brackets

All our customers automatically fall into tax bracket 1 unless they have specifically declared otherwise. Only companies in specific sectors may apply for tax bracket 2. The lower tax rate (bracket 2) applies to electricity consumed by industrial plants and commercial greenhouses, for example.  

Electricity tax as of 1 January 2021 

• Tax bracket 1: 2.79372 cents/kWh (incl. VAT 24% and security of supply charge) 
• Tax bracket 2: 0.07812 cents/kWh (incl. VAT 24% and security of supply charge)

Change your electricity tax bracket

All our customers automatically fall into tax bracket 1 unless they have specifically declared otherwise. Electricity tax changes should always be reported to Caruna on the form on this page. Tax bracket 2 is only for companies. Private customers are always in tax bracket 1.  

The tax bracket depends on the type of activity at the company's accounting point. Companies should make sure that the operations on their site conform to the requirements for tax bracket 2. Tax bracket 2 applies to certain types of activity stated in the Act on Electricity Excise Duty, such as industry or commercial greenhouses. The company must provide Caruna with a written affirmation of the change in its tax bracket if it is entitled to use the lower tax bracket.  

The attached form should be used to declare a change in tax bracket for an agreement. The form can be filled in by the customer or their representative. If you fill in the form on behalf of the customer, you need a power of attorney. 

Contact us using the chat feature if you need further information about changing your electricity tax bracket. 

Further information about the industrial classification

A company applying to change its tax bracket is requested to state its industrial classification. The classifications of the company's main line of business and any secondary lines of business should be stated on the form. The company's main line of business does not need to be eligible for the lower tax rate, but the purpose of use of the electricity consumed at the accounting point must correspond to a line of business that is allowed to use tax bracket 2 (sectors B, C, D & E).

Metering and reporting readings

If all of the electricity consumption on a site is in electricity tax bracket 2, the electricity will be metered using Caruna's electricity meter. Electricity tax will be included in the electricity distribution invoice at the rate applying to tax bracket 2. 

If only part of the activity on the site is eligible for the lower tax bracket, the electricity consumption in the lower tax bracket must be metered separately. Metering can be arranged using Caruna's electricity meter or the customer's own electricity meter (back meter). Your electricity contractor is responsible for installing back-metering and carrying out the necessary electrical work on the property. 

• If you measure your consumption in tax bracket 2 with your own back meter, you can apply for a tax credit on the Tax Administration's MyTax service. 
• If you measure your consumption in tax bracket 1 with your own back meter, electricity tax will be collected at the rate for tax bracket 2 on Caruna's electricity distribution invoice. The back-metering billing data will be taken into consideration once per year on the basis of your meter reading.  

You are responsible for submitting annual back-meter readings to Caruna. We will send a request for a meter reading by email.  

If your entire site is eligible for the lower tax bracket or if you use Caruna's electricity meters, there is no need for back-metering.