The price of electricity and the power crisis are on everyone’s lips this winter. The reason is that price records in southern Norway are being set again and again, and the amount of electricity bills of the people have increased many times over.
The government is implementing various measures to correct the rise in electricity prices.
The electricity subsidy is 55 per cent of the cost of more than 70 re per kilowatt hour for the month of December and 80 per cent for the month of January, February and March. This applies to homes, and supports up to 5,000 kilowatt hours of electricity consumption per individual household.
On Thursday afternoon and evening, thousands of people took to the streets to protest against the high price across the country, and one of the demands was clear: the maximum price per kilowatt hour was 50 re.
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Thursday night’s debate on the NRK focused on the price of electricity, and earlier, host Frederick Solwang reviewed his own electricity bill – to see how much the electricity subsidy actually affects the final amount of his electricity bill.
– When asked by the government to explain the electricity subsidy for the month of December, I think most people understood that every time the price per kilowatt exceeds 70 re we will get back 55 per cent from the state. But Solwang says in a video clip released on social media that this is not true.
Watch the video clip of Solwang paying his electricity bill in the window below:
He shows his own electricity bill for the month of December, which is 5934 kroner, where the average price is 225 re. The latter is noteworthy. This is because when the government pays electricity subsidies, they are based on the average point price of the electricity transaction in North Pool.
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The average spot price of the Nord Pool was much lower than 225 re in December. It was 178 re in eastern, southern and western Norway.
– We only get 55% refund on the difference between 70 re and 178 re, so I did not even get compensation up to my average price of 225 re and no compensation for the peaks. [dagene der timesprisen på det meste var så høy som 537 øre per kilowattime], Says Solwang.
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– Support will be only 33 percent
The difference between 70 re and 178 re is 108 re. In December, the government paid 55 percent of these, or 59 re.
– This means I still have to pay 118 re per kilowatt hour even after doing power support. But it does not stop there, because VAT is coming on top of this. Then the price will be 148 re. Then support will be only 33 percent, not 55 percent. Solwang calculates that there will be network charges, electricity bills, and additional charges from the electricity company.
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According to his calculations, if VAT is removed, how much will the electricity subsidy be?
– In short. We still have to pay for the morning and afternoon power peaks – these are peaks that most people do not miss. The discount for December is not 55 percent, but 33 percent. If they increase support in January, the discount will not be 80 percent, but will be much lower, the host concludes.
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