It would be political suicide to start taxing the energy for heating, leading to all kinds of weirdness such as:
- Denmark _paying_ to export electricity when the power stations need to run to produce heat (because if the power plants used the electricity to provide heating, the heat would not be a waste product)!
- Big data centers cannot sell waste heat for heating, because they would need to run heat engines to raise the temperature to usable levels, again rendering the heat "not a waste product".
(TBH, The last one is so clearly stupid that a workaround in the rules is in the books)