– A blow to the face – VG

Less than 20 minutes ago

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Marius Arion Nilsen of the FRP has been elected to the Storting from Aust-Agder, one of the counties with the highest price pressure on electricity. He sits on the energy committee, and says that he has “enjoyed” the math after that The government’s latest power grab was made clear on Sunday evening:

– This is really a slap in the face to electricity customers, as expected and in need of powerful measures, he says to VG.

From the first of October, the government was to cover 90 per cent of the electricity price above 70 øre per kilowatt hour, instead of 80 per cent. The tip percentage increase is now being moved forward one month, to the first of September.

Each household thus receives an additional one-off payment from the state, in the form of a larger part of the electricity bill being covered in September.

But how much is it about?

Nilsen has calculated on the most expensive electricity areas NO1 and NO2, and has not calculated grid rent, which varies widely. An average household (16,000 kWh per year) will then have NOK 317 more covered from their bill.

– These are buttons and glossy images. This helps little. The government came up with something as confusing as NOK 317 more for households that have had their bills multiplied, and nothing concrete for business. It is far too weak, says Nilsen.

With VG’s calculator, you can check for yourself how much the state covers from your bill, before and after the change that came in today. Here you can also include your online rental.

VG’s calculation: NOK 724 to those who get the most

What will a family with a detached house save, given the highest prices in the country?

VG starts from an older, smaller detached house in Kristiansand. With a relatively high consumption (3,000 kWh per month), and the high average price in July (263 øre per kWh), the state will now cover NOK 724 more in September.

If the family would have received an electricity bill of NOK 4,688 before, they will now receive a bill of NOK 3,964.

It is NOK 724 more than the family would have been covered without today’s change, but it is a one-off payment since the change would have come in October anyway.

That does not change Nilsen’s opinion.

– By all means, everything helps, but when you have a bill that has roughly tripled even with the new electricity subsidy, this is far too little, says Nilsen.

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The parties in the Storting have been impatient. There was a majority in favor of a proposal to cancel the summer holidays and convene the Storting for an extraordinary meeting, to deal with the crisis.

But after the government held an emergency meeting with the parties today, the Conservative Party has withdrawn its support for the extraordinary meeting.

– Here we think the government bought the Høyre’s vote rather cheaply. We expected and demand more measures, says Nilsen.

– The Conservative Party was satisfied with NOK 317 more and vague promises of support for business, so that was enough for them to withdraw their support for the demand for an extraordinary meeting. But this government is not known for working quickly, so we expect that it will be the Storting that must instruct the government to act, if anything is to happen.

– The government is behind

Nikolai Astrup, spokesperson for energy policy in the Conservative Party, explains to VG that they want to have such a meeting at the Storting before October, but that they want to give the government more time.

– There is no basis for holding such a meeting until the government has come up with a concrete solution for the companies that we can discuss, he says.

After the emergency meeting at the Storting on Monday it became clear that a government electricity subsidy for companies will probably not arrive until October, i.e. in two months.

– What does the Conservative Party think of this waiting period?

– The government is behind, and should have come up with a support scheme for companies that are struggling eight months ago, says Astrup.

Also read: Right: Norway can pay its way out of the power crisis

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– All over southern Norway there are companies struggling with unmanageable electricity bills. We started calling for measures for business in December 2021 and have submitted several proposals to the Storting during the winter and spring. Unfortunately, the government has voted down all such initiatives, says Astrup.

Energy Minister Terje Aasland (Ap) dismissed the criticism that the government is “behind” with the electricity measures in a VG interview on Monday.

– Those who say that we should withhold water already in January or February, I would like to see them, he says.

I think the power support will help even more

– It is important to find measures to remedy the business world. But they must be targeted and must contribute to ensuring that the schemes secure jobs and do not end up as pure cash transfers to the business owners, says Elisabeth Sæther (Ap), State Secretary in the Ministry of Oil and Energy.

When she is presented with VG’s figures on how much an “ordinary” family in Southern Norway will receive in increased electricity support, she highlights the support the government has already introduced:

– A family in Sørlandet (NO2) with a consumption of 20,000 kWh/year has so far paid around NOK 19,800 in electricity. Without the electricity subsidy, they would have had to pay NOK 31,200. That’s a difference of NOK 11,400, she says.

– When the benefit rate increases to 90 per cent, it will help people even more. That the FRP tries to ridicule it appears quite strange.

The government has also made it possible to limit the export of electricity when the degree of filling in the water reservoirs is lower than what is normal for the time of year.

The European power market has previously been highlighted as one of the main reasons why electricity prices are so high – and because there are large price differences within Norway.

However, it is too early to say anything about what such an arrangement will look like, according to Sæther.

– Why has it taken so long before the government has said anything about reducing exports?

– The measures we have implemented have meant that the power producers have saved on the water in the reservoirs. This has had an impact on exports, says the state secretary.

– Then it is worth reminding that before this extraordinary situation we had a well-functioning energy market which, in the main, has served us well for 30 years. We believe it is unwise to jump on simple solutions that have not been sufficiently investigated, she adds.

Will suggest maximum price

The FRP will present its proposals for power measures to the Storting’s presidency, and ask that they bring the Storting together to discuss them, according to Marius Arion Nilsen of the Progress Party.

– We have a list with nine items, including a price for electricity of a maximum of 50 øre per kilowatt hour, he says.

– Won’t the maximum price for electricity mean that people have no reason to save electricity?

– 50 øre per kilowatt hour is still 60% higher than the average price in recent years, so people will not necessarily start wasting electricity.

Astrup, for his part, is skeptical of the proposal.

– It is well known that several parties, including the Conservative Party, and most specialist circles in Norway are against a maximum price for electricity. This is because the maximum price can contribute to worsening the situation, and increase the risk of rationing and power shortages. We must avoid that.

– Then it is much better to increase the electricity subsidy to 90% and adopt a support scheme for companies that are struggling, as the Conservative Party has proposed, he adds.

Elisabeth Sæther in Ap believes that the current arrangement already functions as a sort of maximum limit.

– But we have to have two thoughts in our heads at once. It is not good economic management for the state to commit to such large cash transfers where there will be no initiative to save electricity, she says.

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