Energi Norge warns against setting a maximum price for electricity

Electric - electricityPhoto: Антон Дмитриев / Unsplash

According to Energi Norge, setting a maximum price for electricity could lead to critical energy shortages in Norway and stop the green shift.

Several political parties have advocated a maximum price for electricity, including the Progress Party, the Red Party, and the Socialist Left Party, but the interest and employer organization Energi Norge warns against the move, the newspaper Klassekampen writes.

“The introduction of a maximum price is the best way to turn an electricity price crisis into a real energy crisis,” Toini Løvseth, director of markets, customers, and electrification in Energy Norway, stated.

“The cost of different power production varies depending on the weather, time of year, and form of energy. A fixed maximum price of, for example, 35 øre would mean that it will not be profitable for power producers to supply power when the costs of production are higher than the maximum price set by politicians. That could result in energy shortages. Theoretically, blackouts,” Løvseth warned.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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