Finance Minister Trygve Slagsvold Vedum (Sp) this week rejected increasing the electricity subsidy, pointing out that the scheme “works well” and that he does not want to give Norges Bank “even more arguments to increase the interest rate even more”. The clarification came after the government extended the electricity subsidy to include people registered in the cottage, and after increasing pressure from several quarters: A joint call from the Swedish Confederation of Trade Unions, the Trade Union and Industri Energi that the electricity subsidy scheme must be improved before the wage settlement. Industrial clubs announcing a political strike to mark dissatisfaction with “the lack of action from the government”. Request from NHO that the energy subsidy scheme be continued until March. New forecasts for electricity prices show that the state can save 2 out of 3 kroner in the budgeted electricity subsidy. In the state budget for 2023, the government estimates that the electricity subsidy will cost NOK 44.7 billion. Norges Hytteforbund (NHF) is still working to ensure that cabin owners are part of the electricity support scheme. Questions from KrF about the lack of electricity support for the Church of Norway are contrary to the Constitution. Questions from the FRP about how “the allegedly generous electricity scheme” stands in a European perspective. Figures from the think tank Bruegel in Brussels show that Norway gives less electricity support as part of GDP than 20 other European countries. 7 countries are behind Norway on the same list. Vice-Chancellor and German Energy Minister Robert Habeck attended NHO’s annual conference earlier in January. There he pointed out that Germany has to take out large government loans to finance the support schemes, while Norway got away cheaply. Photo: Martin Fønnebø / news / Martin Fønnebø / news The German support is twice as large per inhabitant Breugel uses figures from September 2021, and takes forward with proposed electricity support for households in 2023 (but omits to include support for agriculture and the voluntary 2023). Tala was last updated in November. For Norway, this amounts to 8.1 billion euros. By comparison, Germany will spend 264 billion euros. As long as Germany has 16 times as many inhabitants as Norway, the German support is twice as large per inhabitant. A point Vice-Chancellor and Minister of Energy Robert Habeck did not fail to notice when he visited NHO’s annual conference earlier in January. There he pointed out that Germany has to take out large government loans to finance the support schemes, while Norway receives huge extra income – mainly from gas exports – as a result of the Ukraine war. news has asked the minister for a comment on the Belgian overview. The ministry says in response that they will answer the Frp, which has asked the same question, before commenting on the speech. The answer is expected to come on 6 February. – While other European countries only experience losses as a result of the energy crisis, Norway has great gains. One would think that in such a situation Norway gave more electricity support than our neighboring countries, not less, says Kjell Ingolf Ropstad (KrF). In Malta, the government has given the state-owned energy supplier a mandate to freeze prices at the 2014 level. – The Belgian overview should be used to realistically orientate a government that believes it delivers the best aid in the world, says Marius Arion Nilsen (Frp). Figures from the think tank Bruegel in Brussels show that Norway gives less electricity support as part of GDP than 20 other European countries. Photo: Bruegel The relationship between current support and the interest rate level A burning point in the debate about the size of current support is how and how much it affects the interest rate level. With reference to data from Statistics Norway and the Ministry of Finance, KrF claims that a fixed price of 50 øre will reduce price growth. In a written response to the Storting, Vedum agrees that such a move “in the short term will curb inflation”, but adds: – In the longer term, increased use of oil money will contribute to increased activity and pressure on prices, wages and exchange rates, write he. According to the Financial Times, European countries have together spent more than half a trillion euros in various power support schemes since September 2021, when Russia began to tighten the gas taps. Policy rate in percent The policy rate is set eight times a year by Norges Bank. The policy interest rate governs the interest rates in the banks, and affects your housing costs. The aim of raising the interest rate is for the high prices to come down again. The forecast tells us how Norges Bank thinks interest rates will develop in the future. Read more about sources and reservations here. A higher policy rate means increased expenses if you have a mortgage – Tired of claims that the Norwegian power subsidy is somehow so generous – It is always good to know how the various European countries are working to get through the energy crisis, but Norwegian politicians must ultimately make decisions based on health here at home in Norway, says confederation leader Industri Energi, Frode Alfheim. He wants a “simpler, more understandable and more predictable” power support: – Set a maximum total price, then everyone knows what we have to take care of. Today, the state covers 90 per cent of the electricity price when it is above 70 øre per kilowatt hour (without VAT). – I’m tired of the government constantly claiming that the Norwegian power subsidy is somehow so generous, says Sofie Marhaug in Raudt. She points out that around 90 per cent of hydropower is publicly owned, that these “are running like crazy” and that “the strong public ownership suggests that much, much, much more should benefit people and businesses”. – I’m tired of the government constantly claiming that the Norwegian power subsidy is somehow so generous, says Sofie Marhaug in Raudt. Photo: Fredrik Varfjell / NTB – A bluff that the electricity subsidy scheme is generous – We have long been skeptical of the government’s own presentation of the Norwegian electricity subsidy scheme as generous. It is misleading and downright bluff, says Linda Ørstavik Öberg, who is an energy policy adviser in Huseierne. She herself proposes a maximum price of 50 øre per kilowatt hour. – It is time to recognize that we as a nation do not experience losses as a result of the energy crisis, and that we are in a special position that other European countries can only dream of.
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