In the power municipality Tokke, residents benefit from a maximum price of 38 øre per kilowatt hour. But when the government presented its electricity subsidy scheme last year, the local politicians in Tokke also changed their subsidy scheme for households in an emergency decision. The municipality has profited from this. NOK 19 million flows directly into the municipal coffers. The mayor of Tokke, Jarand Felland (Sp), believes that they are not getting rich from the electricity subsidy for the residents. – It is the same funds. We just sell the power cheaper, says the mayor of Tokke, Jarand Felland. He believes the municipality could earn more if they had sold the electricity at the spot price. Photo: SIW BORGEN / news Not selling electricity dearly If residents receive electricity subsidies on top of the low maximum price in the municipality, they will be paid for using electricity. – We think it will be wrong. That was not the government’s intention, says the mayor. The local politicians therefore decided to adjust the electricity price in December 2021. With an electricity price of 170 øre, the residents of Tokke will be billed the maximum price of 38 øre plus the electricity subsidy of 90 per cent above 70 øre, i.e. 128 øre. – We don’t sell electricity as expensive as other municipalities, says Felland. The figures for December are forecasts, but the municipality estimates that the sum will be at least NOK 19 million for 2022. The municipality only increased the electricity price for households, while everyone else, such as business, holiday homes and public buildings, still pays the price ceiling of 38 øre. Perfect for the residents People that news meets in Tokke are very satisfied with the maximum price in the municipality. They do not complain that the electricity subsidy that was intended for them ends up in the municipal coffers. – Absolutely fine with the maximum price in Tokke, thinks Anne Helene Johre. Photo: SIW BORGEN / news – When we get the goods with the maximum price, they get to take the other. It’s perfectly fine with the maximum price. One almost earns living in Tokke now, says Anne Helene Johre. – If people enjoy themselves with cheap electricity, that’s perfect for me, says Juan Garcia Luna. – If the municipality gets all those millions, they have to share with me because I have none, laughs Juan Garcia Luna. He is nevertheless happy that people in Tokke can enjoy cheap electricity. Photo: SIW BORGEN / news Several residents feel lucky to live in Tokke, and say that several have moved to the municipality because of the maximum price. – I am so satisfied, says Astrid Bakken Døli. – We are very lucky, says Astrid Bakken Døli about the municipality’s maximum price for electricity. Photo: SIW BORGEN / news – It’s great. I feel very lucky. But it can feel unfair to many, I think. Neighboring municipalities have expensive electricity, says Gro Beisland. Could have earned even more The municipality could have earned even more if they had chosen to sell electricity at the spot price, the mayor points out. Then they could sell at a spot price of 170 øre, and earn 160 øre per kilowatt hour, Felland explains. – We think it will be completely wrong for residents to be paid for using electricity, says mayor Jarand Felland about why the municipality has adjusted the maximum price, so that they receive the electricity subsidy directly in the municipal coffers. Photo: SIW BORGEN / news Many power municipalities get higher income precisely because they sell at the spot price, he explains. – If we were more greedy, we could get more money in, says Felland. Therefore, he believes that it is completely unproblematic that the power municipality profits from the electricity subsidy. – The answer is yes. I think it is very good and right that Tokke and the community get this money instead of the residents, he says. The municipality also has a solid dividend of 17–18 million from the Vest-Telemark kraftlag for 2022. That is twice as much as the largest dividend we have received in the past, according to the mayor. Thinks more people should look to Tokke Rødt and Frp thinks more municipalities should do like Tokke. – I cheer for Tokke municipality and think they give something back to the community, unlike many other municipalities that are power owners, says Sofie Marhaug, energy policy spokesperson in Rødt. – They have done something very right, namely to sell the electricity at a price that is much closer to what it costs to produce, says Sofie Marhaug, energy policy spokesperson in Rødt. Photo: Ihne Pedersen – Then they are in a pinch when the government has this half-way repayment through the electricity subsidy, says Marhaug. – Does this mean that the scheme is not working as it should? – This means that Tokke has found a better solution than the government, and they get income from it. While other municipalities make good money by selling at the spot price, she says. Tokke municipality has done what the state should have done, believes Hans Andreas Limi, who is fiscal policy spokesperson in the Frp. – Tokke has done what we believe is right, namely to provide residents and businesses with cheap electricity and created predictability, says Limi. Will not change scheme The Ministry of Petroleum and Energy recommends in the state budget that the scheme with electricity support not be changed now. They believe the scheme works well, and only a small number of customers have favorable fixed price agreements, comments State Secretary Elisabeth Sæther (Ap). – I agree that it is not lucky that someone is left with double electricity support in practice, she says. The challenges are still not great enough for the scheme to change, the ministry believes.
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Power municipality Tokke receives almost 20 million in government electricity support – news Vestfold and Telemark – Local news, TV and radio
