– The problem with providing electricity subsidies is that it puts pressure on the entire Norwegian business community. It is not a good solution, says Stian Sigurdsen, director of social impact at Virke. Today, Virke met the government to discuss the electricity crisis affecting business. “Unfortunately, we are in a situation with high electricity prices, and businesses across the business world have to find solutions,” says Sigurdsen. Virke fears that extra support from the state to companies could lead to even higher inflation in Norway. This can contribute to the economy overheating and to Norges Bank raising interest rates more than they would otherwise do. Proposes loans The employers’ organization therefore believes that state-guaranteed loans for companies struggling to pay their electricity bills are a better solution. – Loans to the companies that need it are the best solution right now, says Sigurdsen. Giving electricity support as a loan also makes it less likely that the scheme will be abused, he believes. Virke believes that electricity subsidies should only be given to businesses that cannot cover increased electricity costs by setting their own prices. – There are some businesses that do not have the opportunity to pass on increased electricity costs to their customers. This could be volunteers in the healthcare system or museums, and so on. They have no chance of earning this and should receive a subsidy, says Sigurdsen. The government wants increased electricity support Companies in large parts of Norway are paying more and more for electricity. More and more politicians have therefore called for an electricity subsidy scheme for businesses, which means that the state covers part of the electricity bill. An electricity subsidy scheme for private households is already in place, and from 1 September the state covers 90% of the electricity bill for Norwegian families when the price exceeds 70 øre per kilowatt hour. – As a responsible government, we must take into account the Norwegian economy as a whole, says Minister of Industry Jan Christian Vestre to news. Industry Minister Jan Christian Vestre says that the Norwegian economy as a whole is doing very well. Photo: Remi Sagen / news Like Virke, the minister is concerned that a possible arrangement for electricity support for companies must not contribute to more inflation and higher interest rates. – We may have to create arrangements that are targeted and effective. And that doesn’t cost too much money, says Vestre.
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