Top CEO Stein Lier-Hansen in Norsk Industri says he is humiliated daily by desperate member companies. – They say that they are unable to handle these extraordinary and sky-high electricity prices that we now have. The companies have lived with these prices since May 2021, and now their patience is starting to run out, says Lier-Hansen. – We see prices up to NOK 7-8, while the norm for the past ten years has been NOK 30-35. It goes without saying that the companies are unable to handle these price levels, he says. PROPOSES GERMAN SCHEME: Norsk Industri refers to the German power support scheme for companies. A similar scheme in Norway would cost NOK 30–40 billion a year. Photo: Patrick da Silva Sæther / Patrick da Silva Sæther – Look to Germany! Norsk Industri believes that Norway should use the German model for electricity support for business. In Germany, most industrial plants are fired with gas. Before Christmas, the politicians adopted a price cap on gas which ensures that the state takes electricity costs above 7 cents per kWh (75 øre) for 70 per cent of consumption. Household gas consumption is also subsidized and has a price ceiling of 12 cents per kWh (NOK 1.27) for 80 per cent of consumption. HUGE: BASF’s industrial plant in Ludwigshafen in south-west Germany spans ten square kilometres. Gas consumption is as large as that of the nation of Switzerland. Photo: Xaver Lockau / BASF SE Germany’s costly support schemes totaling 200 billion euros (about NOK 2130 billion) are financed with government loans. Will cost NOK 30-40 billion a year According to Norsk Industri’s calculations, a similar support scheme for Norwegian companies would cost NOK 30-40 billion a year. The scheme is only intended to last a couple of years. – But aren’t high energy prices part of the risk business operators have to take? – Yes, but this is not a normal variation, this is 10 times. That is why all countries in the EU have taken action in an emergency situation, says Lier-Hansen. – How would people react if diesel had increased to NOK 200? Society had come to a standstill, according to the head of Norsk Industri. The government: – Plans 1, 2 and 3 are the fixed price agreements Minister of Industry and Trade Jan Christian Vestre (Ap), on the other hand, insists that it is the fixed price agreements for business that are the right solution. – The government’s plans 1, 2 and 3 are the fixed price agreements. Then we will not do anything that can contribute to putting our feet under the market which is now in the process of establishing itself, he says to news. Industry Minister Jan Christian Vestre (Ap) believes that the fixed price agreements for business are the right solution. Photo: Tale Hauso / news Vestre points out that the government has reduced the electricity tax and given 3 billion in energy subsidies to business. – And we are now putting the fixed price agreements in place, which means that companies that want more predictability can sign long-term agreements down to 70 øre. – So I hope that more competition for these fixed-price customers will contribute to us getting even better terms, he adds. But according to Norsk Industri, the fixed-price agreements offered now are not particularly interesting. The Minister of Industry emphasizes that there is still a real danger that the Norwegian economy could overheat. Therefore, the government has had to tighten up spending. – But are you open to looking at schemes together with the industry? – There is nothing we spend more time on than the energy crisis. And we have no more important task than to secure Norwegian jobs. We have ongoing dialogue with both the employer side and the employee side. What has been, and is, our most important answer is the fixed price agreements, Vestre asserts.
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Norwegian Industry demands electricity support for companies – news Norway – Overview of news from different parts of the country
