The Ministry of Trade and Fisheries has been in contact with the power suppliers who deliver fixed price contracts to the business community to clarify how big the appetite for the scheme is. The answer is that a total of 370 fixed price contracts have been sold. The fixed price agreements were launched at the beginning of December when electricity prices made it precarious to provide support to companies that wanted more predictable electricity expenses. Since then, the contracts have been criticized and blamed for being “expensive”, “too few” and “stiff”. In January, Minister of Business Jan Christian Vestre (Ap) called the Statkraft management to a meeting where he “sharpened the tone” and expressed that he “expects them to act aggressively in the competition for fixed price customers”. Behind the March order from the Prime Minister to be “more on the ball” sang a January overview in the newspaper Europower. She showed that only 127 Norwegian companies had agreed to the Minister of Industry’s “power fiasco”. Three months later, the number is thus up to 370. – A clear sign that the fixed price agreements are not good enough – This shows that the fixed price agreements are a real slap in the face, says Kjell Ingolf Ropstad (KrF). He believes that the agreements are not sufficiently adapted to the business world. – This shows that a new round of subsidies to ENØK and good investments in new renewable energy would be right, he adds. Storting representative for the FRP, Marius A. Nilsen, reads the 370s as “a clear sign that the fixed price agreements are not good enough”. “Unfortunately, sky-high electricity prices have become the norm with this government, and the fixed price agreements that were supposed to solve everything are not working well enough,” he says. – This shows that the fixed-price agreements are a serious slap in the stomach, says Kjell Ingolf Ropstad (KrF). Photo: Annika Byrde / NTB These are the fixed price agreements. By tying the basic interest tax to the contract price (and not the spot price), long-term electricity contracts have historically been reserved for power-intensive industry, which does not dare to live at the mercy of the spot price. From the new year – at the same time as the energy subsidy scheme expires – the changes in basic interest tax mean that similar long-term contracts will also be available to the rest of the business world. The lowest price provided that the companies commit to a fixed volume of electricity consumption throughout the period, a so-called flat profile. The so-called seasonal profiles, which take account of fluctuations in consumption, are more expensive. There are a total of 355 member companies in Energi Norge. So far, only four players have entered the field. In a written reply to the Storting representative, Minister of Business and Industry Vestre writes that he has “the impression that there is great interest in the new fixed price agreements”, and that “we” should be “careful in evaluating” the arrangement at the present time. From the context, it is not immediately clear who is “we” in the sentence. The Labor minister adds that it is “not a goal in itself” that as many companies as possible should enter into fixed price agreements, but that it is “completely natural” that companies carefully consider the upsides and downsides before they possibly sign a contract. – The market is developing positively, and we must give it time to mature and develop further before we evaluate the measure, he writes. – Naive to believe that this will be established overnight Olve Grotle, Høgre – We have been clear all along that it is naive to believe that a well-functioning market for fixed-price contracts can be established overnight. Therefore, we arranged for not only an increase in the electricity subsidy, but also for it to be extended through the winter until the market hopefully worked better. The reason why no contractors are signing contracts now is mainly that electricity prices have fallen in the markets around us. This also indicates that those who signed fixed-price agreements before Christmas are now probably paying more for the electricity than they would have done in the spot market, something many of those who have considered fixed-price agreements have probably been worried about. Industry Minister Vestre says that he has “the impression that there is great interest in the new fixed price agreements”. Photo: Gorm Kallestad / NTB – The fixed-price contracts have got an undeservedly bad reputation – Based on the feedback we receive, the agreements fall far short of the needs of all companies. These numbers also show that, says chief economist at NHO, Øystein Dørum. He adds that fixed price agreements “in the long run can become an important tool for companies to gain more predictability around electricity costs”. – It is therefore positive that the government has taken the initiative to make arrangements for companies to get a better offer. Statkraft does not offer fixed price contracts directly, but sells them via the electricity companies Fjordkraft and Fortum. In addition, fixed price agreements are offered by Lyse, Hafslund and Å Energi (Entelios). Ane Marte Hausken, managing director of Lyse Energi, tells news that the fixed-price contracts have received an “undeserved bad reputation” and that there has been a tendency to “over-problematize elements of the scheme”. – This means that many have stayed behind. She adds that fixed-price contracts have traditionally been for a few selected companies (power-intensive industry) and that for many Norwegian business owners they imply a new practice for which there has been no culture. – Our conclusion is that this is an arrangement that must be given time to mature. Now there are signs that prices may be on the way up again. Our message is that this may be the right time for several companies to sign contracts, she says. Ane Marte Hausken, managing director of Lyse Energi, tells news that the fixed price contracts have received an “undeserved bad reputation”. Save NOK 200,000 a month on the scheme Inge Brigt Aarbakke is the day-to-day manager of Aarbakke AS, which produces parts for the oil and gas industry. He signed a fixed-price contract in December, and was among the first in the country to do so. The electricity bill was then 1.5 million a month. – For us, a fixed price fits very well, and I am very satisfied with it, he says to news. He has calculated that he saves NOK 200,000 a month on the scheme. – For me, this is insurance that provides predictability and lower electricity costs. Then others can assess what is best for them.
ttn-69
Only 370 companies have signed a fixed-price contract for electricity – news Vestland
