The income is good for Norway’s largest power municipality: Last year Suldal had a gross income of NOK 274 million. They use the income from hydropower to build new buildings that the municipality needs, without taking out loans. – We are building a new nursing home, with a boarding building and some fire stations, says Gerd Helen Bø (Sp), mayor of Suldal municipality. Gerd Helen Bø, mayor of Suldal. Photo: Håkon Mannsåker / news Suldal, and other municipalities that make their nature available to power companies, receive income from what is called concession power, says director Eivind Heløe of the interest organization Renewable Norway. This means that the host municipalities can buy a share of up to 10 per cent of the produced volume at 11 øre/kWh. They can sell that power on in the market at the price the market is willing to pay. This is what has led to the large revenues for the power municipalities. In total, the municipalities and county councils increased their income from NOK 4.5 billion in 2021 to NOK 12 billion in 2022, according to figures obtained by Renewable Norway. – We get both the high incomes when electricity prices go up, but we also get the low ones when the price goes down, as last in 2020, says Bø in Suldal. Believes the rich should share The surplus of the small power municipalities must be shared with their neighboring municipalities, says the Liberal Party’s Alfred Bjørlo. – Basically, it must be good economics to make nature available for renewable energy. It should be cleared up that tiny power municipalities are allowed to veto against merging with neighboring municipalities in larger regional municipalities, says Bjørlo, who sits on the business committee at the Storting. – Force merger? – Yes, but under the condition that the income remains local. Alfred Bjørlo (V), parliamentary representative. Photo: Asgeir Heimdal Reksnes / news PARISH AND FJORDANE It seems the mayor of Suldal sounds strange. She points to the fluctuations in electricity income. In addition, Suldal gives part of the profit indirectly to other municipalities in the region. The municipality pays 10 percent of its power revenues to the Ryfylke fund. All the power municipalities in Ryfylke do so. – Last year we gave just under 26 million to that fund, says Bø. Will continue the agreement Oil and Energy Minister Terje Aasland (Ap) sees the money as well-deserved money for the power municipalities. Oil and Energy Minister Terje Aasland (Ap). Photo: Mette Ballovara / news – It is part of the historic agreement that Norway and the state have with the power municipalities. I think it is important that we continue these types of historic agreements. The same is done by Heløe in Renewable Norway. He believes it is reasonable because the power municipalities have assumed a cost on behalf of society at large. – They have had to accept environmental interventions in their immediate areas, he says. Eivind Heløe in Renewable Norway. Photo: Øystein Andreas Bjerke / Energi Norge Although Suldal makes a lot of money from being a power municipality, she would most like the situation to be different. – I would rather have less income for the municipality, and that people could have lower electricity prices, she says.
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Liberals want to forcibly merge rich power municipalities with poor neighbors – news Rogaland – Local news, TV and radio
