The Norwegian government will cover half of the bill for high electricity prices

Jonas Gahr StørePhoto: Håkon Mosvold Larsen / NTB
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The state will cover half of the bill for prices that exceed the spot price of 70 øre per kilowatt-hour until March, the government states.

The spot price is the current price in the marketplace at which a given asset can be bought or sold for immediate delivery.

“From the next electricity bill, households will have a deduction on the bill. The solution is that the state will take half of the bill for the price that exceeds a spot price of 70 øre per-kilowatt hour,” Prime Minister Jonas Gahr Støre (AP) said at the government’s press conference on the electricity situation in Norway.

Households will receive support for power consumption of up to 5,000 kilowatt-hours of their monthly consumption. The scheme will apply from and including December 2021 to and including March 2022 and will be administered through the network companies.

The scheme will cost the Norwegian state approximately NOK 5 billion, NTB writes.

Higher electricity bills expected

The scheme comes in addition to the already announced measures, which include increased housing benefits and support for students.

“This means an estimated NOK 5 billion will go directly into paying the highest part of people’s bills,” Minister of Finance Trygve Slagsvold Vedum (SP) said.

“Now we hope it will be a little easier to go into the Christmas holidays for many people,” Vedum said.

Minister of Petroleum and Energy Marte Mjøs Persen (AP) said households must prepare for higher electricity bills this winter compared to normal winters.

“But with this security package, ordinary people throughout Norway get good help to handle the special situation this winter,” Mjøs Persen said.

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

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