Record low electricity prices mean that Oslo Municipality is losing huge amounts

Electricity Price Outage PowerElectricity, Photo: Pixabay.com

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The low power prices mean that Oslo Municipality is missing out on NOK 750 million in dividends from Hafslund E-CO this year.

Hafslund E-CO is Norway’s second largest power producer and wholly owned by the Oslo Municipality. Initially, the municipality had expected close to one and a half billion in dividends from the electricity company, writes Dagens Næringsliv.

– “Historically low power prices combined with the Coronavirus crisis means that the board of Hafslund E-CO recommended a dividend of 700 million Norwegian kroner for the financial year 2019. Great uncertainty in the market means that the city council supported the board’s recommendation,” says Victoria Marie Evensen (Labor), advisor for business and ownership.

The municipality collects dividends from Fortum Oslo Varme and Hafslund E-CO. The budget assumed dividend revenues of NOK 1.56 billion in 2020 from the two companies, but the result was NOK 847.5 million.

Currently, the power price is around 1.5 øre per kilowatt hour in southern Norway, power analyst Ole Tom Djupskås stated in Refinitiv last week.

© NTB Scanpix / #Norway Today

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