After an upswing during the pandemic, the situation has turned upside down in the cottage market. According to the construction industry, the decline in sales of new cabins in the last quarter of last year was as much as 65 per cent, compared to the same period in 2021. The start of new projects has been reduced by 30 per cent. Blame it on the electricity prices – We have laid off 15 employees as a result of a significantly reduced order intake, says general manager of the cabin developer Lende, Johnny Holm. General manager of the cottage developer Lende, Johnny Holm. Photo: William Jobling / news He believes that increased electricity prices are the main reason for the decline. – Both we and the customers need predictability in order for this market to return to normal, says Holm. The cabin developer believes it is a paradox that the village is affected by the sky-high electricity prices, at the same time that Nore og Uvdal is a power municipality. – I think our ancestors thought that we should have a competitive advantage when they established the power plants through the valley. I think it is unfortunate that we put ourselves in this predicament, says Holm. – Close to full stop Cabin construction is a cornerstone industry in the three municipalities of Flesberg, Rollag and Nore and Uvdal. Altogether there are more than 10,000 cabins here, but now demand is failing. Owner of Drømmehtyta, Arild Borge. Photo: William Jobling / news – It’s almost full stop, says owner of Drømmehytta, Arild Borge. At this time last year, the company he owns had advance bookings for 10-12 cabins. This year this has been reduced to three to four orders. Borge has no doubts as to what the cause is. – It is the unpredictable electricity prices. People no longer know exactly what things cost. Then the decisions are further down the line, Borge believes. Demanding a fixed price It is not just the construction industry that is affected. When the cottagers do not show up, there is less turnover in the shops in the village. At the same time, electricity bills are becoming increasingly difficult to manage. Managing director Linda Tuseth in Coop. Photo: William Jobling / news – It’s a big upheaval. We pay four or five times as much for electricity than we did previously. Now we are in the middle of a downsizing process, says store manager Linda Tuseth at Coop. The manager of the local business company believes it is about people’s livelihoods. – In many ways, I think we have a crisis ahead of us, the extent of which we do not yet see. This is dangerous for business, and results in fewer leisure residents. In the long term, also fewer permanent residents, says general manager Jon Vegar Lied Persen in Nore og Uvdal Næringsselskap. Now the new center party politician is demanding that the government take power. – We must have a fixed price for electricity. Until then, we must have electricity support for leisure residents, says Persen. Managing director Jon Vegar Lied Persen in Nore og Uvdal Næringsselskap, wants a fixed price for electricity. Photo: William Jobling / news
ttn-69
Strong decline in cabin sales. The industry blames high electricity prices. – news Oslo and Viken – Local news, TV and radio
