Advertisement

Norwegian government set to earn 73 billion kroner from high energy prices

Frazer Norwell
Frazer Norwell - [email protected]
Norwegian government set to earn 73 billion kroner from high energy prices
The Norwegian state is expected to earn up to 73 billion kroner in extra revenue this year. Pictured are powerlines. Photo by Casey Horner on Unsplash

Norway's government could end up earning more from high electricity prices than it expects to pay out in subsidised energy bills this year, figures released Thursday show.

Advertisement

The Norwegian state could be set to earn an extra 73 billion kroner from energy this year, according to new figures from interest group and employer organisation Energi Norge.

This year, the Norwegian state will spend up to 41 billion kroner providing subsidies to households to help them cover rising electricity prices.

When prices rise above 70 øre kWh, the government covers up to 90 percent of the bill. Last week, the government unveiled a raft of measures to help businesses cope with rising energy bills.

Figures from the estimated windfall show that the 73 billion kroner comes from 56 billion kroner in tax, three billion in VAT and 14 billion kroner in dividends from state-owned firms.

Advertisement

Despite income from high energy bills totalling considerably more than the government will pay to help consumers cope with bills, Energi Norge said the windfall was a good thing for the country.

"70 billion shows that here we cover the electricity support scheme for households and the business scheme. In addition, we provide the opportunity for the community to finance other welfare benefits. So this is good news for Norway," Energi Norge's managing director Knut Kroepelien told public broadcaster NRK.

Earlier this week, Norway's parliamentary holiday was halted for the parties to debate energy policy. During the debate, over 90 proposals were tabled by opposition parties. Among the proposals were calls for increased support, with the government covering the bill when prices pass 50 øre kWh and a maximum price.

READ MORE: What is the worst-case scenario for electricity prices in Norway this winter?

More

Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also