Statnett to cut grid rent in Norway by 11 billion kroner
Norwegian state-owned Statnett will not charge grid rent until next September due to record revenues, the company announced Friday.
Statnett will not charge any grid rent until September 1st, 2023, saving consumers in Norway around 11 billion kroner, the state-owned firm announced Friday.
The move comes after Statnett had already cut the share it was charging for grid rent, the fee energy users pay for having power delivered from the grid to their home, due to high revenues.
September will mark the first month the firm stops charging for gird rent. Statnett’s high revenues are primarily due to ‘bottleneck’ incomes. A bottleneck income is the money grid firms make from transferring energy from areas with price differences.
“The income we get when electricity is transferred is record-breaking. At the same time, the cost of network losses is also greater. We now want to compensate this cost so that more of the bottleneck income returns to Norwegian consumers and the industry,” CEO of Statnett Hilde Tonne said in a press release.
However, the move will not people will get away from paying grid rent completely. It simply means that they will not be charged fees for using the central grid, which Statnett owns. Consumers will still need to pay to have energy moved from smaller sections of the grid to their homes.
Business and financial site E24 broke the news on Friday and estimated that this move could knock anywhere from five to ten øre per kilowatt hour off of consumers' energy bills- depending on where they live.
Energi Norge, an employer and industry organisation, welcomed the announcement from Statnett but said enough wasn’t being done overall to avoid sharp price increases.
Director of Networks and Power Systems at Energii Norge Kristin H. Lind told Norwegian newswire NTB said that even with Friday’s announcement, Statnett still had billions in extra revenue that it needed to return to customers.
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Statnett will not charge any grid rent until September 1st, 2023, saving consumers in Norway around 11 billion kroner, the state-owned firm announced Friday.
The move comes after Statnett had already cut the share it was charging for grid rent, the fee energy users pay for having power delivered from the grid to their home, due to high revenues.
September will mark the first month the firm stops charging for gird rent. Statnett’s high revenues are primarily due to ‘bottleneck’ incomes. A bottleneck income is the money grid firms make from transferring energy from areas with price differences.
“The income we get when electricity is transferred is record-breaking. At the same time, the cost of network losses is also greater. We now want to compensate this cost so that more of the bottleneck income returns to Norwegian consumers and the industry,” CEO of Statnett Hilde Tonne said in a press release.
However, the move will not people will get away from paying grid rent completely. It simply means that they will not be charged fees for using the central grid, which Statnett owns. Consumers will still need to pay to have energy moved from smaller sections of the grid to their homes.
Business and financial site E24 broke the news on Friday and estimated that this move could knock anywhere from five to ten øre per kilowatt hour off of consumers' energy bills- depending on where they live.
Energi Norge, an employer and industry organisation, welcomed the announcement from Statnett but said enough wasn’t being done overall to avoid sharp price increases.
Director of Networks and Power Systems at Energii Norge Kristin H. Lind told Norwegian newswire NTB said that even with Friday’s announcement, Statnett still had billions in extra revenue that it needed to return to customers.
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