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Norway to help ease electricity price pain for businesses

STOCK PICTURE | Image by Alexandra von Gutthenbach-Lindau from Pixabay

NorwayThe government on Friday presented a long-awaited package of loans and grants to reduce the impact of Powerful the prices for companiesjoining other European countries seeking to facilitate the energy crisis.

Governments across the region have been racing to introduce measures to protect consumers and industry from higher energy bills. Read the full story

The grant scheme will cover companies Powerful costs exceeding 3% of revenues in the first half of 2022, costing a total of 3 billion Norwegian kroner ($292.5 million), Industry Minister Jan Christian Vestre told a news conference.

“On the one hand, we must avoid creating additional pressure on the Norwegian economy, while at the same time we want to give electricity-intensive companies to help adapt,” Vestre said.

NorwayThe NHO business lobby, which was involved in negotiations over the measures, said it supported the plan.

The subsidy presented by the center-left government will compensate 25% of the Powerful tariffs above a threshold of NOK 0.70 per kilowatt hour and will be capped at NOK 3.5 million per company.

In addition, companies can borrow up to 50 million crowns, he said.

The scheme is intended to last until the end of the year, with the government planning tax changes from January to simplify and provide incentives forthe pricelong term Powerful supply offers at lower levels than the current high levels.

Wholesale Powerful the prices in the south of Norway have climbed 700% in the past year from 0.50 crowns/kWh to 4 crowns/kWh due to a combination of high European gas rates the prices and a dry year in hydroPowerful– dependent country. Read the full story

Norway already subsidizes household electricity bills and has also provided to help to agriculture and greenhouses. However, others companies with relatively high Powerful consumption, such as bakeries, butchers and dry cleaners, had to absorb the price whole points. – Reuters