The measures will be as follows: 1) Improve access to fixed price agreements In the autumn, the Ministry of Finance held a consultation on a proposal for a new contract exemption from ground rent tax related to fixed price agreements for electricity. In the proposal, it is assumed that the electricity suppliers should be able to offer standardized fixed price agreements to end users with a maximum price mark-up of 0.5 øre on the fixed price the suppliers pay to the power producers, and that prices should be offered for periods of 3, 5 and 7 years respectively. This move will make it easier for more households and businesses to gain access to good fixed price agreements and more predictable electricity bills. The government will submit the proposal for a new contract exception related to such fixed price agreements to the Storting during the autumn session 2022 and introduction from 1 January 2023. 2) Energy subsidy scheme A new application-based framework-managed scheme administered by Enova for particularly vulnerable companies will be established. The scheme is limited to companies with at least 3 per cent electricity intensity in the first half of 2022, measured as actual electricity costs as a proportion of turnover in this period. Grants are calculated based on a model with two levels of support. All companies that qualify for the scheme and that carry out energy mapping can apply for and receive grants. The support may be cut short in accordance with available funding. The grant will increase if the company also implements energy measures that are related to the business and that are included in the energy survey. The electricity component is calculated based on the difference between the actual electricity price per kWh that the companies have faced and a threshold value of 70 øre: Support level I: up to 25 per cent of the difference between the actual price and 70 øre per kWh. As a minimum, the company must carry out an energy survey. Support level II: up to 45 per cent of the difference between the actual price and 70 øre per kWh. The company must carry out energy mapping, and in addition apply for grants for and carry out energy measures. The company for a grant of up to 50 per cent of the investment cost linked to the energy measure. The maximum ceiling for support through stages I and II to each company under the scheme is NOK 3.5 million. This payment ceiling applies regardless of whether the company is in support level I or II. It is a goal that a significant proportion of total support and disposable allocation goes to investments in energy measures. The electricity component of the scheme will be calculated based on costs for 1 October to 31 December 2022, and the scheme will open for applications during November. Companies that receive subsidies under the scheme cannot pay dividends in 2023. Petroleum extraction and power-intensive operations (companies with electricity consumption exceeding 100 GWh/year) will not be able to receive subsidies under the scheme. The same applies to companies that receive subsidies from other electricity support schemes. The scheme is set up in line with the EU’s temporary state aid regulations in light of the Ukraine crisis. 3) Loan guarantee scheme to ensure liquidity The loan guarantee scheme means that the state guarantees 90 per cent of the amount in new bank loans to companies that are facing an acute lack of liquidity as a result of having had an extraordinary increase in electricity costs. The scheme will be managed by Eksfin. The scheme is limited to companies with at least 3 per cent electricity intensity in the first half of 2022. The upper limit for the loan amount is set at NOK 50 million per company/group. The loan guarantee scheme is set up in line with the EU’s temporary state aid regulations in connection with the Ukraine crisis. The scheme will last until the spring of 2023, subject to the extension of the aforementioned temporary support regulations 4) Faster development of renewable energy The government has set a clear ambition for the development of offshore wind on the Norwegian continental shelf by allocating areas for 30 GW production by 2040. The government will increase the renewable power production, shorten the license processing time and strengthen the capacity in the power grid to meet current and future needs. The government has recently asked NVE to carry out several measures within the current regulations that contribute to reducing the time it takes to process licenses for network facilities, and in addition, among other things, consider a further development of the “fast track” scheme for license processing of small or simple cases. The government will allow the development of wind power in places where there are good wind conditions and local acceptance. Due consideration must be given to safeguarding important natural values. The government has opened up the processing of completely new wind power projects, and has asked NVE to accept new notifications for processing. It is a prerequisite that the host municipality agrees. The government wants a larger part of the value creation to benefit the local community. 5) Balanced agreements and price negotiation The Government has encouraged public contracting authorities to be particularly aware of their responsibility to offer balanced contract terms, as this can help to promote competition in the market in an uncertain situation. The government also encouraged the use of contract standards and amendment clauses. New figures from Statistics Norway in September show that inflation continues at a historically high level. Uncertainty about, for example, electricity prices, but also shipping costs, raw material prices, and other challenges in global value chains, creates uncertainty about the future for many traders. However, the figures also indicate that in certain situations there may be a need to make changes to contracts already entered into. The government emphasizes that there is room for maneuver in the procurement regulations to make changes to existing contracts. Source: Reggeringen.no
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This is how the companies react to the power support from the government – news Vestland
