The matter in summary: – Lærdal has adopted a fixed price agreement which gives the residents an electricity price of 32 øre per kilowatt hour.- There has been a debate about whether low prices encourage waste, but the overall overview for 2023 shows that Lærdal does not use more electricity than the rest of the country.- More political party in the Storting believes that the Lærdal agreement should serve as a model for a national maximum price. – Other municipalities with reasonable fixed price agreements include Tokke and Modalen, and there are various local power support schemes in several other municipalities. – The electricity price committee concluded in October that the Norwegian market for electricity in general works well, but that Statnett can help strengthen liquidity in the financial power market. The summary is made by an AI service from OpenAi. The content is quality assured by news’s journalists before publication. After what Sogn Avis characterizes as “heated discussions in the municipal council”, Lærdal has adopted a new electricity subsidy scheme which gives residents a fixed price of 32 øre per kilowatt hour (plus VAT). Lærdal has access to large amounts of licensing power, and in a “good, social democratic spirit” (as the Labor mayor says) has decided that this should benefit its own residents. The result is the country’s “kindest” electricity prices. But the debate about the price level also encourages “waste”, as the municipal council got a signal about last year. One year later, the total overview for 2023 shows that the Lærdøle gained control over electricity use. – We saw an increase in consumption early in the year, but this gradually normalised, says Knut Skår in Okken kraft, who is responsible for the fixed price agreement in the municipality. Prime Minister Jonas Gahr Støre (Ap) has stated that he “understands that the maximum price can seem tempting”, but that it can have “unintended consequences”. Others have made the point that maximum prices weaken incentives for electricity savings. Photo: Alf Vidar Snæland – Maximum price leads to increased consumption “If the government introduces a maximum price for electricity, it will lead to increased consumption”, writes the Nature Conservation Association. – Lærdal residents have almost the same consumption as before the fixed price agreement was introduced, counters Lærdal mayor Audun Mo (Ap). Local council representative in Lærdal, Sæmund Stokstad (SV), believes the Lærdal example weakens the argument against fixed price agreements. – There is nothing to suggest that the leathermen use more electricity than others. I feel that the Lærdøle, like everyone else, take responsibility for reducing electricity consumption, he says. Sæmund Stokstad is calling for an arrangement where all Norwegians have access to fixed and long-term electricity prices. – For example, through a state electricity company that bought up the electricity and sold it to consumers. In this way, we were able to ensure driving safety for everyone in Norway. Photo: Morten Ellingsen Local council colleague Viktor Yttri (Sp) says electricity is “a basic commodity, and not something that should be on the stock exchange”. – People are aware that electricity is a scarce factor, and do not use more than absolutely necessary, regardless of the price, he says. At the Storting, KrF and Raudt say that the Lærdal agreement should serve as a model for a larger, national scheme. Cicilie Sigrid Andersen / news Kjell Ingolf Ropstad, KrF – Experience from Lærdal clearly shows that people do not waste electricity even if the price is low. I don’t think it’s surprising. People need a certain amount of electricity for light and heat, regardless of the price. And consumers still get higher electricity bills if consumption is high. Who wants higher electricity bills than necessary? So now it is high time that the government immediately introduced a electricity subsidy with 100 per cent compensation for prices above 50 øre. It is still above the historical electricity price, but it will give single minimum pensioners and families with children with poor means a much lower electricity bill than today. Terje Pedersen / NTB Sofie Marhaug, Raudt– Straum is necessary, not primarily a luxury consumption. Therefore, there are limits to how much people with ordinary and poor advice can save if they are to have light in the lamp. The best thing we can do if we are afraid of waste is to invest more in Enøk for most people. Then Raudt also wants a higher price for very high consumption, a two-price system. In practice, the current support also has that; there is an upper limit. I’m rooting for Lærdal. Raudt wants to work for more municipalities to take control of the power, and take it off the stock exchange to offer good contracts to residents that more closely reflect the actual costs of the Norwegian electricity. Svein Sundsdal / news Jonny Liland (Ap), mayor of Sirdal municipality – We do not sell concession power to residents. In the past, Sirdal has had such an arrangement, when figures showed that it did not lead to higher electricity consumption in the household. We now offer businesses fixed price agreements for electricity at 25 øre, recently reduced from 50 øre KW/h. It is difficult to determine what impact this has on the business sector’s efforts to save electricity, but general consumption does not appear to be unnatural compared to the corresponding municipalities. Siw Borgen Jarand Felland (Sp), mayor of Tokke municipality – We have a electricity price for everyone who is a subscriber in the municipality of 39 øre per kWh. In addition, there are VAT and taxes. Whether this reduces the incentive to save electricity is difficult to answer. But in the municipality we are very busy with efficient electricity use for our buildings. Furthermore, I have spoken to a pipe fitter in the municipality who installed quite a few heat pumps last year. NTB Hans Blattmann (Ap), mayor of Bykle municipality – We do not have a sufficient arrangement with the sale of licensing power to our own residents or businesses at the present time. The municipal board has asked for a case related to such a solution, but before this case is brought forward, we are waiting for the parliamentary report on the new income system. The income from the concession hall finances good municipal services, and a loss of income to the municipality can then weaken these services. A possible arrangement with the possibility of purchasing licensed power may not, I think, weaken the incentive for power saving. Morten Ellingsen / NMBU Sæmund Stokstad, Lærdal SV – I feel that the Lærdøls, like the general public, take responsibility for reducing electricity consumption and are aware of the climate challenges we are facing. As the scheme is now, the incentives for Lærdøls with a fixed price are good. Those who use less electricity get a lower electricity bill. This is how it should be. At the same time, I believe that electricity prices over the past year show that a market-controlled electricity scheme is not sustainable for the citizens of Norway. – Electricity customers respond to the prices How “elastic” the consumption pattern is – i.e. to what extent the prices are apt to affect usage – has been the subject of various reports since the so-called electricity price crisis peaked in 2022. “The price shock has not led to less electricity consumption”, wrote The class struggle when prices started to rise in August 2022. Since then, Statnett and Statistics Norway concluded that “the decline in consumption indicates that electricity customers are responding to the prices”. The electricity price in 2023 Figures from Statistics Norway show that the electricity price for households fell by 5.1 per cent from 2022 to 2023. Nevertheless, the average price in 2023 was the second highest measured in the statistics. The electricity price for households, including taxes and network rent, but before the electricity subsidy is deducted, was 160.7 øre/kWh in 2023. Of this, the electricity price made up 86.0 øre/kWh, network rent 31.4 øre/kWh and taxes 43.3 øre/kWh. After the electricity subsidy has been deducted, the average electricity price for households is still 136.5 øre/kWh in 2023. The electricity subsidy was introduced by the authorities in December 2021. The scheme means that households get part of their electricity expenses paid back through network rent. From and including 1 September 2023, the electricity subsidy has been calculated on the basis of price and consumption per hour, instead of per month. At the same time, the price difference between the various price ranges was large. This is due to different resource situations and network limitations (“bottlenecks”). The average annual price in South-West Norway (NO2) was 90 øre/kWh. Source: ssb.no and nve.no Last year, residents in Lærdal paid 50 øre per kilowatt hour, but still received electricity support as if they were paying the normal spot price. Under the given circumstances, the leather workers could therefore earn money by installing the heating cables in the driveway. The new arrangement removes this possibility by possibly withdrawing the electricity subsidy. – This is important. Because it means that nobody can make money from using electricity, says Stokstad (SV). Other “power municipalities” that sponsor their own residents with reasonable fixed price agreements are Tokke (39 øre per kWh) and Modalen. In addition, there are various types of local power support schemes in Aurland, Luster, Suldal, Sirdal, Bykle, Valle, Åseral, Vinje and Kvinesdal. Vik mayor Roy Egil Stadheim (Ap) believes that it is fundamentally wrong to operate with municipal fixed price agreements, and that in that case this must be a state responsibility. Deira municipality, which is located on the south side of the Sognefjord, sells the concession power and uses the income on health and care services. – I am convinced that our solution will stand up better over time, he says. – The Norwegian market for electricity generally works well The Electricity Price Committee concluded in October that the Norwegian market for electricity generally works well, but that Statnett can help strengthen liquidity in the financial power market. According to the Straumprisutvalet, this will make it easier for electricity suppliers to offer fixed-price contracts to households and small and medium-sized businesses. On Monday this week, Statnett received marching orders from the government to start just such a pilot scheme. – We want better security arrangements for households and businesses in the electricity market, said Energy Minister Terje Aasland. – This move will contribute to that.
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In this municipality, residents never pay more than 32 øre kWh – news Vestland
