Norway extends electricity subsidy until March 2023, strengthens housing benefits

Photo: Nikola Johnny Mirkovic / Unsplash

The government parties and the Socialist Left Party (SV) agreed to extend the electricity subsidy until March 2023. 

“Norway is a country with harsh conditions where we need heat and light in our homes. Therefore, the Labor Party, the Center Party, and the Socialist Left Party agree to reduce electricity bills in the short term through these schemes,” fiscal policy spokesman in the Center Party, Sigbjørn Gjelsvik, noted in a press release.

“The government is also working on long-term measures such as gaining control over electricity exports. It also said ‘no’ to new foreign cables, and it will invest heavily in the development of renewable energy,” he added.

The government has previously advocated extending the electricity subsidy for households until March 2023, while the SV wanted to strengthen the scheme.

Support increased to 90%

The parties now agree on a scheme for high electricity prices until March next year.

The support is increased to 90% when the electricity costs more than 70 øre / kWh in October, November, and December. Previously, electricity customers were covered at 55% of the costs over 70 øre per kilowatt-hour for December and 80% in January, February, and March.

With the new proposal, the temporary increases in housing benefits will be extended until June 2022 and reintroduced for the November 2022-January 2023 period.

The extra payments through the housing benefit will be expanded in the following way throughout the country:

For the months of May and October, NOK 1,000 is to be paid per household with a supplement of NOK 150 per household member. For November and December, NOK 1,500 per household is to be paid with a supplement of NOK 150 per household member.

New debate this autumn

The SV has previously said that they want to cover 100% of electricity prices over 50 øre for the first 1,000 kilowatt-hours (kWh) in a month. For the next 2,000 kWh, they proposed covering 80%.

“We have an agreement with the government to negotiate further this autumn to make the scheme even fairer and more precise. 

“We have also secured extra housing benefits for more people in the cold months, which will secure people’s finances even more,” fiscal policy spokesperson Kari Elisabeth Kaski in the SV stated.

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

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1 Comment on "Norway extends electricity subsidy until March 2023, strengthens housing benefits"

  1. yvonne andreassen | 6. April 2022 at 17:39 | Reply

    good on Norway – in UK we get a kick in the teeth !

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