Norway’s government agrees package to slash energy bills this winter

Pictured are powerlines.
The government will cover half of the spot price when it rises above 70 øre per kilowatt hour. Pictured are powerlines. Photo by Fré Sonneveld on Unsplash
The government will cover more than half the cost of energy bills this year when the spot price rises above a certain point as part of a wider package that the Socialist Left Party has agreed to support.

Following months of rising energy prices across the country and records being set for energy costs in the south of Norway throughout the winter, the government has said it would foot just over half the bill when the spot price exceeds 70 øre per Kilowatt hour. 

“Now people can go into Christmas less worried,” the Labor Party’s energy and environmental policy spokesperson Terje Aasland said.

How much will covered by the government? 

The government will cover 55 percent of the bill on energy prices above a monthly average of 70 øre per kilowatt-hour. However, this only applies to those on a spot price agreement. The spot price is the raw cost of energy paid by exchanges and energy firms. 

The deduction will appear on your bill and will be done automatically. 

How long will the scheme last? 

If implemented, the scheme will apply from December until March 2022. The deductions will appear on the bill for December, which will arrive in the new year. 

Who is eligible? 

The scheme will only apply to primary residences and not cabins or holiday homes. 

Furthermore, housing associations with a shared meter will not receive government assistance from the state. 

This means those in apartments where there’s a collective electric and water bill will not benefit from the scheme. 

Are there any other rules?  

Yes, there will be a consumption limit on the bills. Households will only receive support for consumption up to 5,000-kilowatt-hours. You will be required to pay the total price of any consumption past this limit. 

In addition to this scheme, students who can document electricity expenses will receive 3,000 kroner in extra loans, with 1,200 kroner converted into a scholarship. 

The social allowance for housing will also be increased by 1,500 months per month until March to help with energy costs. 

The new proposals will be in addition to a small cut in electricity tax of 8 øre per killowatt-hour in the winter months. 


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