Norwegian energy firm to cut grid rent by 4 billion kroner

Grid rent for Norwegian consumers will be cut to the tune of 4 billion kroner, state-owned power grid firm Statnett announced Monday.

Power lines.
Statnett will cut grid rent from April 1st until the end of the year. Pictured is a stock photo of powerlines. Photo by Marco Bicca on Unsplash

From April 1st Statnett will cut its grid rent due to high revenues from energy exports abroad.

“Even though we have had high prices in Norway recently, trade with other countries has yielded large revenues from both imports and exports,” Statnett CEO Hilde Tonne said in a statement.

Statnett is the state-owned company that operates major power lines that distribute electricity between different parts of the country.

“This means that Norwegian electricity users and industry will receive close to four billion in reduced grid rent in 2022,” the company wrote.

READ MORE: Norwegian energy agency warns high prices could last until next winter 

Grid rent is the charge consumers pay for receiving electricity into their homes. Grid rent is typically anywhere between 20 to 50 øre per kilowatt-hour. Those in rural areas usually pay more, while those in cities pay less.

Statnett’s share of grid rent has been around five øre per kilowatt-hour, and the move could lead to further savings for customers in Norway.

Norway’s largest grid provider Elvia, which supplies Oslo with power, has said it is cancelling a planned grid rent increase off the back of the announcement. Financial media site E24 reports that other companies also may follow suit in cutting grid rent or reducing planned increases.

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Norwegian gas plant back in service after fire

Norway is Europe's second-biggest supplier of natural gas behind Russia and key to ensuring energetic autonomy for the continent. Its sole liquefied natural gas plant is operating once again after being ravaged by a fire in 2020.

Norwegian gas plant back in service after fire

Norway’s sole liquefied natural gas (LNG) unit has been restarted after a 2020 fire and will soon begin production, energy company Equinor said Friday, a move expected to help increase exports to Europe.

Norway is Europe’s second-biggest supplier of natural gas behind Russia.

Production at Equinor’s plant in Hammerfest in northern Norway, which makes it possible to deliver gas by ship in liquid form, is to help Europe cut its dependency on Russian gas after its invasion of Ukraine.

“We have completed the repair work on the plant, we have completed the testing… and we have now started the cool-down process,” Equinor spokesman Gisle Ledel Johannessen told AFP.

“It will take some time to finalise the cool-down process. The next step is to get the liquefied natural gas on the tanks”, he said.

Johannessen would not specify when that could happen, but said it was “a short time frame”.

The site, damaged in a September 2020 fire, produces almost 4.65 million tonnes of LNG per year, according to Equinor.

Norway announced steps in March to keep its gas production at maximum levels to help Europe reduce its Russian dependency.

Among other things, the Norwegian Petroleum and Energy Ministry agreed to adjust the production licences of three offshore fields so that they can prioritise gas production over oil.

But its exports have been squeezed by production capacities, already churning at maximum levels, and the distribution system via pipelines.

It is hoped the Hammerfest unit will make it possible to increase export volumes.

Norway covers between 20 and 25 percent of the European Union’s and Britain’s gas needs, while Russia currently supplies around 40 percent.