Norway’s government will use as much as 10 billion kroner ($1 billion) of the power grid operator’s windfall income to help ease the impact of record electricity prices in the south of the country.
(Bloomberg) — Norway’s government will use as much as 10 billion kroner ($1 billion) of the power grid operator’s windfall income to help ease the impact of record electricity prices in the south of the country.
The government has decided that some of Statnett’s additional income will be distributed to the network companies based upon how much their network costs have increased, the government said on Friday.
Norway’s power system operator has been earning extraordinarily high congestion income from interconnectors and bottlenecks in the national grid after a drought sent prices in the south to a record and European energy costs surged following Russia’s invasion of Ukraine. The measure comes after Statnett last month cut 11 billion kroner of grid tariffs.
Several network companies have warned that they will need to raise rents significantly to make up for network losses that have to be covered in the spot market, the government said. That would mean an increase of more than 3,000 kroner a year for a normal household, it said.
“It is important for us to prevent businesses and households in southern Norway from being affected by further increased electricity costs,” Finance Minister Trygve Slagsvold Vedum said in the statement.
To view the source of this information click here
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
