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Estimates: The Norwegian state will get an extra 70 billion kroner in income due to high electricity prices this year 

Photo: Jason Richard / Unsplash

The government’s extra income as a result of the high electricity prices is far higher than previously estimated, figures from Energi Norge show.

“We have made new estimates. They show that the state will have extraordinary income, beyond normal years, from hydropower, of NOK 70 billion in 2022,” Energi Norge’s managing director, Knut Kroepelien, told Norwegian Broadcasting (NRK).

The total of NOK 73 billion in extra profit is divided between NOK 56 billion in tax, NOK 3 billion in value-added tax, and NOK 14 billion in dividends to the owner.

“70 billion shows that we can cover the electricity support scheme for households and the business support scheme. In addition, we have the opportunity to finance other welfare benefits for the community. So this is good news for Norway,” Kroepelien said.

The government estimates that this year the state will spend NOK 41 billion on electricity subsidies for households. The support scheme for businesses has a limit of NOK 3 billion this year.

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

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2 Comments on "Estimates: The Norwegian state will get an extra 70 billion kroner in income due to high electricity prices this year "

  1. I think that this amount (73 million Nkr.), if true, is obscene! For it to me made public is only good, but where is the hue and outcry from Norwegian citizens and members of Storting about this huge windfall that Norway doesn’t need given the profit figures from Statoil and other Value Added tax resourses.
    To begin with, charging VAT on its citizens for a critical utility that Norway owns is almost criminal. Next, the cost to produce that hydropower is very low because most of their facilities are old and long since paid for. So, call that a cost to produce factor of 30 to 35%. The resultant of that is profit and when added to the needless VAT to sell that power to its citizens could result in a payment to each and every Norwegian of almost 10,000 Kroner!!
    I write this because, even though an American living in Kalispell, Montana, I lived in Bergen, Norge for a number of years. Additionally, I am very familiar to hydro power facilities and the cost to produce such energy in that I was employed in that heavy industry for many years in the Pacific northwest region (Columbia River System) of the U.S.
    So, give the profit and the VAT back to the people of Norway and stop all this not needed windfall to an already rich government. Stand up members of Storting for what is right for your citizens!

  2. Bill, I agree!! I am a Canadian living here amd am absolutely shocked at the lack of outcry from the people of Norway! These prices ARE criminal and there is no need to cnarge this amount. There are so many things that can be used for that. Look at the infrastructure of Oslo! Some of the roads here are in the same shape as they are in the 1950 infrastructure of Cuba! How about funding the Government agencies that are so poorly staffed. I could go on and on about what things need funding here. If this went on in North America, there would be people in the streets. Nothing can be changed until people stand up and tell the Storting they want change and that they were voted in to support them not to work against them.

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