Higher interest rates and price increases mean that many households may have a tough time in the future. Therefore, the electricity subsidy should be increased, the House owners believe. But the government fears that it will result in even higher interest rates, despite the fact that households are now being hit from several sides at the same time: – Increased mortgage interest rates, high fuel prices, high electricity bills, increased municipal taxes and an extreme price increase on common consumer goods. This will affect many, says general secretary Morten Andreas Meyer in Huseierne. – The simplest way the state can help households is to increase the electricity subsidy, says general secretary Morten Andreas Meyer of the organization Huseierne. Photo: Kjartan Rørslett / news The association is therefore asking the government and Storting for a more generous electricity subsidy scheme for households than today. Now the state pays 80 percent of the electricity that exceeds 70 øre per kilowatt hours for a consumption of up to 5,000 kWh per month. In October, November and December, the state’s share of the bill is increased to 90 per cent. Morten Andreas Meyer and the Homeowners believe that the current electricity subsidy scheme is well constructed. – But it hits at too high a price level, he believes. Last winter, many electricity customers were notified of unusually high electricity prices. Photo: Screenshot from mobile – Necessary redistribution Now the House owners are proposing that no one should pay more than 50 øre per kilowatt hours for the electricity, plus fees and network rent. If the electricity price is higher than this, the state must cover 100 per cent, the association believes. – If the state is to take an even larger part of people’s electricity bills, what will there be less money for? – It is completely wrong to present it so that the state pays a larger part of our electricity bill. This is a necessary redistribution of the large additional income that publicly owned power companies and the state have from the extremely high electricity bills that are currently charged to households, says Meyer. Even with the current electricity subsidy scheme, the bills will be high for many homeowners. Photo: Lise Åserud / NTB Fear of even higher interest rates In the Ministry of Petroleum and Energy, State Secretary Elisabeth Sæther (Ap) says that she understands that many people may find it difficult financially and therefore want increased payments from the state. But she is afraid that an even more generous electricity subsidy could contribute to Norges Bank raising the policy rate even more. – Secure financial management is the most important tool against sky-high interest rates, says State Secretary Elisabeth Sæther in the Ministry of Oil and Energy. Photo: Naina Helen Jåma/NTB – Safe financial management is the most important tool we have to avoid sky-high interest rates that will hit people’s private finances hard. We are therefore skeptical about changing the cut-off point to 50 øre, which would mean significantly increased government spending, she says. But having said that, Sæther adds that the electricity support scheme is not written in stone. – We will assess the electricity subsidy scheme this autumn and also other measures against increased power prices, she says. Much of the electricity we use goes to heating. Photo: Stian Lysberg Solum / SCANPIX Willing to remove the consumption ceiling Today, households do not receive electricity support for consumption above 5,000 kWh a month. The House owners propose to remove this limitation in the support. – I think that is a rather bad proposal, that limit should be lowered rather than removed, says Professor Mette Helene Bjørndal at the Norwegian School of Economics. She has been following the power market for many years. – It is important that we retain the incentives to save electricity. Because the high prices are an expression of the scarcity of electricity, says Professor Mette Helene Bjørndal at the Norwegian School of Economics. Photo: Marit Hommedal / NHH – It is better that the first kilowatt hours we use have a low price. But for the last kilowatt hour we use, the price must reflect the value of the electricity. She believes it is important to retain the incentive to save electricity when there is a shortage of it. – It is difficult to see what other mechanisms you have than the electricity price, she says.
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Homeowners ask the state to increase electricity subsidies – news Norway – Overview of news from various parts of the country
