The electricity subsidy costs for 2022 expected to reach 22 billion kroner

Electricity - power linesPhoto: Håkon Mosvold Larsen / NTB
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The Norwegian government confirmed on Friday that it will extend the electricity subsidy until March next year. The total bill is expected to be over NOK 22 billion for 2022.

Minister of Petroleum and Energy Terje Aasland (AP) announced at the beginning of March that the scheme would be extended, and on Friday, the proposal was presented to the public.

“There are many indications that power prices may remain at a high level later this year as well. To contribute to predictability, the government has already announced that it will extend the temporary electricity support schemes until March 2023,” the government noted in a press release.

In addition, it plans to provide support to housing benefit recipients in areas with high electricity prices for April and May this year.

Price tag

The sum cost of the proposals is NOK 7.8 billion. That means that for 2022, measures worth NOK 22.3 billion have been adopted or proposed. The electricity subsidy cost for the first three months of next year is expected to reach NOK 6.3 billion.

There is considerable uncertainty about how much the electricity subsidy will actually cost because the scheme is linked to power prices and consumption.

The government now proposes these measures in connection with high electricity prices:

1. The temporary electricity support scheme is extended for households until March 2023. The need for funding for the extension is estimated at NOK 7.4 billion in 2022.

2. The temporary electricity support scheme is extended for agriculture until March 2023. The current allocation of NOK 500 million is expected to cover the need in 2022.

3. The temporary electricity support scheme is extended to the voluntary sector until March 2023. The need for funding for the extension is estimated at NOK 230 million in 2022.

4. Extra payments to housing benefit recipients in areas with high electricity prices in April and May 2022. Expenditure is estimated at 151 million kroner in 2022.

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

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