On Sunday, the government came up with new measures to remedy the high electricity prices. From 1 September, the electricity subsidy will be increased from 80 to 90 per cent when the spot price is over 70 øre per kilowatt hour. – Norwegians depend on electricity. They use it for heating and several other purposes. That is why we are announcing this now, said Prime Minister Jonas Gahr Støre to news on Sunday. But what does this mean for consumers in Norway? A big help – It means that they pay considerably less than without a compensation scheme, says director of the Norwegian Consumer Council Inger Lise Blyverket. – But the savings depend on the electricity contract you have. The scheme goes directly to the spot price, not to the company’s mark-up. Figures news has received from the Consumer Council show what the electricity subsidy will amount to at different spot prices in different housing units. Given a compensation scheme of 90 per cent, it amounts to a halving for someone who lives in an apartment and has an average consumption of just under 12,000 kWh a year. Record high prices, also with support – But the prices we pay are still far higher than in a normal year? – Definitely. If you compare with a normal year, the prices are record high even with the compensation scheme, says Blyverket. – If we end up with a price of NOK 5 per kWh, which several analysts believe may be possible, and which I also do not think is unrealistic, then the bill for average consumption in a detached house, even with the compensation scheme, will be twice as high as in a normal year. Inger Lise Blyverket is director of the Consumer Council. Photo: Consumer Council So even if you pay significantly less than without the support scheme, this will affect people’s finances. The director of the Consumer Council believes that it is about what kind of financial security you have in the first place. – Many have to cut back on normal consumption, and on luxury consumption such as holidays. For other consumer groups, it will be what makes ends meet and causes them to have serious payment problems. – What would happen if we didn’t have the electricity support? – We know that a good number of consumers saw themselves having to cut back this winter. There were many stories of people not being able to heat their homes sufficiently, or being able to use common household appliances such as stoves and washing machines. Without the compensation scheme, it would probably have affected more people. Small change in consumption So far, however, it is not seen that the price crisis has led to major changes in consumption in this country. – We see so far that consumption has changed little, even though prices have skyrocketed. This suggests that Norwegians have rather inflexible consumption. According to Blyverket, it is, among other things, because we use electricity to heat houses. – That sets us apart from most other European countries. According to Statistics Norway, the average annual consumption in a Norwegian household is 16,000 kWh. – In other countries, where they use energy sources other than electricity, it is 2,500–5,000. Important to have a good electricity contract In the future, it will therefore be important for many to follow typical saving tips: Turn down the temperature, turn off the lights after you are done, do not have all electrical aids on at the same time. – The most important thing is to be stingy with the use of electricity, where it is possible and justifiable, says Blyverket. In addition, it is of course important to obtain a good electricity contract. – We believe that in future there will be greater interest in insuring oneself against major fluctuations. Then fixed price will be more interesting in Norway. But now this is no longer offered, so to speak. The government has announced that it will facilitate fixed price agreements, so that both consumers and companies get a certain guarantee.
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This means the electricity support for your bill – news Norway – Overview of news from different parts of the country
