Forces in LO and within the government parties have argued for a long time that the electricity subsidy scheme for households should be adjusted. Several sources now openly confirm to news that this is something the government is working on. – When the average price is high, the electricity subsidy is high. But whether we can make it more relevant, we are looking at and assessing now, says Oil and Energy Minister Terje Aasland (Ap) to news. LO leader Peggy Hessen Følsvik says the work with the electricity subsidy was mentioned during a meeting with the energy minister and NHO in the ministry on Wednesday morning. – Now, Aasland confirmed today that they are looking at possible adaptations, so that the scheme can work better in the situation we are in now, with large variations in electricity prices. She says it is urgent to get a new and improved electricity support in place. – I am very happy that this is now being considered, and I hope that these solutions will be on the table quickly. CHANGES: Oil and Energy Minister Terje Lien Aasland (Ap) today met LO leader Peggy Hessen Følsvik and NHO chief Ole Erik Almlid. Photo: Ole Berg-Rusten / NTB Can take six months In the current electricity subsidy scheme, consumers in the winter months get 90 per cent of their bill covered when the electricity price on average exceeds 70 øre during a month. VAT is then excluded. The government is now considering changing this, so that support is given for every single hour or every day the electricity price exceeds 70 øre, according to news’s sources. TV 2 and Dagbladet have also reported this. A central point in the government’s work is to put in place an arrangement that is easier to communicate. It must also be an arrangement that stands up over time. But according to news’s sources, the government has also encountered a practical problem: It could take up to six months to implement a changed support scheme. – If we are going to make changes, there is a relatively large amount of work ahead if we make those types of adjustments. It will take some time, says Aasland, and continues: – How long, I cannot say now, because we have been very clear that the electricity support scheme we have is working well and reducing people’s electricity bills. But then we have to see it in a new era. – In front of news, it is suggested that it could take half a year? – It takes time to change large systems. We are many people in Norway, and it must be ensured that the systems that are eventually introduced are good and effective – and that they provide the right conditions for the individual. So if we’re going to make changes, we need to be sure we’re making changes that actually work when we do. LO leader impatient Peggy Hessen Følsvik says that ever since the electricity subsidy scheme came into place, LO has said that it should be adjusted, as far as this is possible, to hit households better. – We see that the government is now working on that, and I am very happy about that. The topic of the meeting between LO, NHO and the government on Wednesday was the need to increase Norwegian power production in the long term. But the high electricity prices are an acute problem for many, emphasizes the LO leader. Which sees the contours of a demanding wage settlement a little further ahead. IMPATIENT: LO leader Peggy Hessen Følsvik. Photo: Ole Berg-Rusten / NTB – It is important for everyone that we receive signals that make the salary settlement in the spring easier, says Følsvik. – Many people struggle to pay their bills, whether it’s electricity prices, high food prices or high interest rates. So anything that helps to give good signals in this respect helps to relieve us in the settlement. When asked if NHO also has expectations for a changed electricity subsidy, NHO chief Ole Erik Almlid replies as follows: – It might be a good idea to do that. Then we hope the government will also consider an electricity support scheme for companies, so that they get the support they need to preserve jobs. But the most important thing in the long term is to ensure increased power production and more energy efficiency. “Must show action” In the last two weeks, news has spoken to a number of sources about the intense work on electricity support that is ongoing in the government. Three central sources with knowledge of the work in the government have confirmed to news at various times that changes are being made along several tracks. One of the sources says that adjustments are being made because the government has to show action. Another says the most important thing about any change is to ensure that people will come out better. But power analyst Tor Reier Lilleholt in Volue Insight believes it is impossible to say whether a scheme where support is given hour by hour or day by day, will be better or worse for most people. – It depends entirely on each individual’s profile and consumption, he says. POWER ANALYST: Tor Reier Lilleholt in Volue Insight. Photo: news Different outcomes An unfortunate aspect of today’s support is that it is possible to make money from the scheme by using a lot of electricity towards the end of the month, if the electricity price is then lower than at the beginning of the month. – It is not reasonable to have an arrangement where you get paid for using electricity, as was the case at the end of December, says Lilleholt. By paying electricity support hour by hour, that particular problem will be avoided, but a new one will arise, he fears. The government wants people to adjust their consumption according to when electricity is cheapest, because that is how the market tells us that there is now more than enough electricity available. Flat power support removes part of the current reward for using the most power when prices are low. – It will remove the saving incentive, and I am worried about that, says Lilleholt, and points out that it will become less attractive to save electricity during the most expensive hours of the day. HIGH THINKING: Fellesforbund’s Jørn Eggum believes that there may be a need for increased electricity support for households. Photo: William Jobling / news Will have a real deduction Already last week, Fellesforbundet leader Jørn Eggum told news that the government should consider changing the electricity subsidy for households. – It may well be that we have to change the arrangement, so that it is not the average of one month, but what is actually the spot price on the individual day, so that you get a real deduction, says Eggum. Several sources news has spoken to say a new solution should be put in place before the national assembly spring starts in full. The fear is that the national meetings of the governing parties could end in a riot, with orders that are demanding for the government to fulfill. “ELECTRICITY REBELLION”: Former Labor deputy leader Trond Giske has long spoken about the need to do something about the high electricity prices. Photo: Hanne Bernhardsen Nordvåg Already 9.–10. February kicks off with the county annual meeting of Trøndelag Ap. The former Ap deputy leader Trond Giske has announced “power riots” at the party’s national meeting in the spring. While the other resigned deputy leader, Hadia Tajik, has called for a national plan to solve the electricity crisis to Dagbladet and opened up about scrapping the export cables to Denmark. At the same time, the government is bound by some races. The Energy Commission, which will assess the energy policy towards 2030 and 2050, presents its report on 1 February. And Ap’s own energy committee, under the leadership of Stavanger Mayor Kari Nessa Nordtun, will first present its report on 5 February. And on top of this, Aasland is setting up a separate committee in February which will, among other things, look at price formation. This work is a result of the budget agreement that the governing parties entered into with SV in the autumn.
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The electricity subsidy may be changed – news Norway – Overview of news from different parts of the country
