Small and medium-sized businesses may soon be able to look forward to help with their electricity bills. Prime Minister Jonas Gahr Støre said at least on Wednesday that the government is working on the matter. But one of the country’s foremost experts on the electricity market recalls that companies are struggling because there is a shortage of electricity in Europe. – The only way to get through this is to reduce consumption among businesses and consumers. Then the prices have to go up, says Niels-Henrik von der Fehr, economics professor at UiO. Can send electricity prices up He is clear that if the government in practice makes electricity cheaper for businesses, the electricity crisis will worsen. – This means that electricity consumption will be greater than it would otherwise be if you had to pay the full price. In the worst case, it could mean that there will be rationing for the winter because we don’t save as much as we should when there is a shortage of electricity, he says. Southern Norway has little water in the reservoirs, which promises another winter with record high electricity prices. The picture shows the Blåsjø magazine. Photo: Gunnar Morsund In other words, the government risks that the winnings go up in the spin. The water in the reservoirs must be drained more than if the companies desperately cut down on electricity consumption. According to von der Fehr, it can provide so much more expensive electricity that the effect of the aid can almost be nullified. – It will partially offset the effect of the electricity subsidy itself, he says. Less support could result in a lower price – How flexible is electricity consumption? Many will think that companies have to have heat in the premises and computers on, no matter what the electricity costs? – Yes, that is absolutely correct. It’s not very flexible in the first place. But it all depends on how high the prices go. – Even with electricity support, people also feel that the price of electricity is high. What is the difference between experiencing a high electricity price and experiencing an even higher electricity price? – People, myself included, pay more for electricity than we are used to, but we still pay less than the market price. This means that if we had paid the full price, we would spend less and save more. That in itself would contribute to the price being lower, says von der Fehr. Think the companies avoid “waste” But Oil and Energy Minister Terje Aasland (Ap) believes that help can be important to prevent companies from cutting staff this winter. – I am concerned that business in Norway should have good framework conditions, so that they can secure employment and ensure that people have a job to go to. That is the government’s primary goal in this context, he says to news. Oil and Energy Minister Terje Aasland will come up with several measures to improve the electricity crisis. He wants less export of electricity when the magazines are switched off, and is looking at better electricity assistance for people and businesses. Photo: Lise Åserud / NTB – But if it leads to an increase in the price of electricity, surely you are the same way? – I assume that the companies that now use electricity are also, if necessary, when we come up with measures, concerned about using them sensibly, and not using more than necessary. I assume that business does not waste money, and they will if they use electricity unnecessarily, says Aasland. Von der Fehr sees a solution to the problem he outlines. – If the electricity subsidy is made independent of how much electricity the companies use, so that the actual price for electricity is not affected, then it will not have that effect, he says.
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Warns against electricity aid for businesses: – Then the price will be pushed up even further – news Norway – Overview of news from different parts of the country
