Municipalities with power production today receive large revenues from this. The principle is that local communities that supply the wider community with energy are paid for the intervention in nature. Today, the “power municipalities” are well out of the power crisis; while the municipalities that have no income from power production (but large expenses) come out worse. But the so-called Revenue System Committee today presented a list of proposals to smooth out the differences between Norwegian municipalities, which have very different requirements and tax revenues. The aim is to correct for these differences, so that the municipalities can offer equal services to their residents. – A betrayal – This is a betrayal of the green shift. We in the power municipalities are putting everything in place for the future’s solutions, and we will get this right in the face. That’s according to Petter Sortland (Ap), who is mayor of the power municipality Høyanger. – I look forward to getting to know the committee’s recommendations. The expert advice from the committee and consultation material from municipalities and others will be an important basis for further political negotiations, says Minister for Municipalities and Districts Sigbjørn Gjelsvik (Sp). The main conclusion from the selection is that the current system generally works well, with a few exceptions. Among the recommendations is that municipalities should no longer be given the opportunity to reduce property tax in order to attract new, wealthy residents. In 2019, it attracted attention when Bø in Vesterålen lowered the wealth tax from 0.8 to 0.35 per cent. – I am looking forward to getting to know the committee’s recommendations, says Minister for Municipalities and Districts Sigbjørn Gjelsvik (Sp). Photo: Gunhild Hjermundrud / Gunhild Hjermundrud – Power revenues create large income differences With the galloping electricity prices, the greatest tension has nevertheless been linked to the distribution of power revenues. – Many municipalities today have high incomes from hydropower, aquaculture funds and property tax on power and petroleum facilities. These incomes are not included in the current equalization of incomes, and create large income differences between the municipalities, write the committee. The committee therefore recommends that these revenues should be included in an equalization scheme between the municipalities. – It is particularly bad news, says the Høyanger mayor. – We were promised lasting income as compensation for the interventions that hydropower development brought with it. The committee’s proposal will result in us losing NOK 6.5 million. At the same time, the large owner municipalities get to keep their owner income from the power company without equalization. There is no logic in that, he says. – Who will now be in favor of more hydropower development? In May 2021, the politicians in Høyanger chose to sell the concession power at a fixed price instead of at the market price. It has cost them dearly. Sortland adds: – We cannot accept that there will be an equalization of our power income. And who will be in favor of more hydropower development, if we are not going to be left with nothing? Two years ago, Finance Minister Jan Tore Sanner (H) put aside a proposal to redistribute NOK 3.6 billion from Norwegian power municipalities to the state. – When nobody wants it, the only thing is to put it away, said Prime Minister Erna Solberg (H) to news. The retreat came after major protests from a total of 200 hydropower municipalities. – A victory for common sense and district Norway, signed off Torfinn Opheim, chairman of the National Association of Vasskraftkommunar, LVK. Two years ago, Erna Solberg (H) put aside a proposal to redistribute NOK 3.6 billion from Norwegian power municipalities to the state. Photo: Per-Kåre Sandbakk / news – This change is centralizing Ivar Kvalen (Sp) is mayor of Luster municipality, where 80 percent of all running water is regulated. Earlier this year, they stopped collecting property tax from residents after the income from the power plant doubled. – This report is yet another attempt to undermine the compensation for lost nature in municipalities with power development, says Kvalen to news. He points out that the state – through Statkraft and Hydro – is the largest power developer in the municipality and is now “extracting huge values from the village”. Kvalen adds: – If Norway is to carry out the green shift, we must produce more renewable energy. Gagging the host municipalities is therefore the wrong way to go. In addition, the restructuring is centralizing by taking money from small district municipalities and giving it to central city municipalities. The government must put this proposal away. The revenue system committee consists of ten members, from the municipal sector, academia, the ministry and KS. The findings will now be put out to the public so that anyone who wishes can contribute to the further work.
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Full dispute about who should have the power revenues – news Vestland
