– It goes beyond our margins, and it becomes a tougher weekday. We have less to invest in, less to innovate on, and it is more difficult to keep the wheels going, says part-owner of Fatland AS, Inge Fatland. He talks about the consequences that one of Norway’s largest slaughterhouses is experiencing on a daily basis. Fatland AS has facilities in Austlandet, but the slaughterhouses in Hommersåk and Ølen are the two largest. Both of these are in Rogaland county, which is in the region with the highest electricity prices in the country. – It goes without saying that it will be harder for us to compete in our market. We have bigger expenses here, and it is about millions compared to if we had been in Trøndelag, for example. The group had planned to expand the facility in Ølen, but is now unsure. Co-owner and technical manager at Fatland, Inge Fatland. Photo: Gisle Jørgensen / news – A terrible shame The company has previously stated that they used to spend between NOK 1-2 million a year on electricity. In 2022, Fatland spent almost NOK 20 million, and it is estimated that approximately NOK 9 million will be spent on electricity in 2023. They have already found themselves forced to send some of the slaughter for pork chops to Trøndelag. Fatland had plans to expand the slaughterhouse in Ølen. But high electricity prices mean they are considering moving to Trøndelag. Electricity prices are lower there than in Ølen. In addition, current prices mean that a planned expansion of the slaughterhouse in Ølen at NOK 250 million could end up elsewhere in the country instead. – We risk that nothing will come of it. It is the costs that are the driving force for having a profitable business in the future. As it is now, it is a competitive disadvantage to be located in this current zone, says Group CEO of Fatland, Anders Hundseid. An expansion of 8,000 square meters was planned at the facility at Ølen. Inge Fatland and group owner Anders Hundseid say that they are now unsure whether it will be carried out in Ølen. Photo: Gisle Jørgensen / news Inge Fatland was born and raised on Ølen, and says that is where he wants to work and live. – It is a terrible shame that we should not have the same prerequisites for operating throughout the country, he says. Now he is calling for an immediate price equalization on the stream. – We are still in an unpredictable day-to-day, and have tried to explain our situation to those who rule the country. It’s terribly disappointing that they don’t see it too. NHO concerned Regional Director of the Norwegian Business Association (NHO) in the county, Tone Grindland, calls the situation unfair. – It is not right for companies to move out of Rogaland because of such an injustice that has occurred with the electricity price, which is different in different parts of the country, she says. She is concerned that fewer people will establish themselves in the county as a result of the electricity prices, and calls the differences in electricity prices in Norway “distortion of competition”. – When it is enormously more expensive to produce a sausage in Rogaland than in Trøndelag, it is a distortion of competition. The guidelines for making the sausage are different, even if it is produced for the same market, she says. She is particularly concerned about food production in what many call the food county of Rogaland. – Agriculture in Rogaland is a big employment machine, and the important ones to take care of in Rogaland. We are proud of the food industry, and I am therefore particularly concerned about them. Regional director of NHO Rogaland, Tone Grindland. Photo: Lene Underhaug / news
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High electricity prices force Fatland AS to reconsider million investment – news Rogaland – Local news, TV and radio
