May 21, 2022

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In this municipality, residents never pay more than 21 kWh - VG

In this municipality, residents never pay more than 21 kWh – VG

Cheaper? Modalin is the second smallest municipality in Norway – and perhaps also the cheapest in terms of electricity.

There is a fixed price for electricity in this municipality. Residents never pay more than 21 øre per kilowatt-hour for electricity – regardless of the weather.

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Rising electricity prices have caused great concern among Norwegian consumers, and the government on Saturday called for Press conference to introduce new measures.

Many people are worried and upset by the exorbitant price of electricity, says Prime Minister Jonas Gahr Store.

Saturday announced that The state will cover half the price of electricity above 70 øre kilowatt-hours, up to 5000 kilowatts per month.

This means a lot to the municipality of Modalin West. There, residents enjoy the price of electricity that few can boast of.

Cheaper? Modalin is the second smallest municipality in Norway.

In Modalin, the municipality’s agreement with the energy team means residents only pay 16 euros per kilowatt-hour before VAT and taxes, says Modalin’s mayor, Kjetil Eikefet.

And that’s a fixed price – whatever the weather.

Residents of Tokke municipality also get a low price for electricity – only 37 euros per kWh. Probably wrote that they are all in the country alone NRK Recently about Tokke.

– We’ve reacted quite a bit to this case, says Modalin’s mayor, Kjetil Eikefet for VG Now.

VG has also previously written about cheap electricity prices in Tokke. But Tokke is by no means the cheapest in the country:

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With VAT and taxes, the price of electricity in Modalin Municipality will be 21.44 øre per kWh. By comparison, Tokke, many times referred to as the cheapest municipality for electricity, has a price tag of €50 per kWh when VAT and taxes are included.

Mayor: Kjetil Eikefet (Samlingslista) Can use electricity in good financial conscience.

Residents own the electricity company themselves

– You should not ignore that we are the cheapest in the country in terms of electricity, comments Modalin Mayor Ketil Ekevit.

He says that the special thing about Modalen municipality is that the residents themselves, and the electricity subscribers, are the owners of the energy company Modalen kraftlag.

This means that instead of selling the electricity outside the municipality, they can instead sell it to themselves at an additional preferred rate, Ekquit says. This energy cannot be sold by the municipality.

– When you move to the municipality, you will be offered to buy a share in Modalen kraftlag. I paid myself about 500 kroner for a share of my time, says the mayor and adds that Modalin municipality also has a share.

He admits that the Modaln municipality has in this way ceded the income to municipal coffers of 4 million kroner so far this year. He adds that this has been a deliberate policy for many decades.

For businesses in Modalen, the flat rate is 35 øre kWh.

Own a house in two places

Bjarte Nygard is one of those who knows the prices for extra electricity on the body – for better or worse. The 46-year-old owns and lives in two homes: one in Modalin and one in Bergen.

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– As such, there are significant differences between the bill I receive for the home in Bergen and the bill I receive for the home in Modalin. I’ve noticed on electricity where it’s cheaper, says Nygaard.

He has previously worked in Modalen Kraftlag and is well acquainted with the favorable electricity agreements in which the residents of the municipality are allowed to participate. But Nygard now works in Bergen and therefore has accommodation in both places.

If electricity prices were as high as they are now, it could cost up to 30,000 kroner a year on a home’s electricity bill, the 46-year-old believes.

He thinks it was Modalin’s generosity that the municipality chose to sell cheap electricity to residents – and notes that they could instead choose to sell electricity at a spot price on the open market and thus earn more.

Bjarti Nygaard (46).

Electricity prices are on the rise

On Saturday, the price rose slightly across the country, according to the latest figures from the energy exchange Nord-Pol, according to E24.

But residents of Modalin can use electricity in good financial conscience.

Other municipalities sell electricity on the open market. We and the other authority municipalities are throwing it at us and we don’t want to share it with anyone, says Ekevit.

But being a Modalin resident is a bit like choosing a fixed-rate mortgage.

Your choice of a good deal depends on whether electricity prices are high or low in that country. Last year, it wasn’t a good deal for the citizens to have our approval, so to speak, the mayor smiles.

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Price 16.4 øre for the whole of 2021. This price is until the contract between Modalen Municipality and Modalen Kraftlag expires on 31.12.2024, or until one of the parties terminates it, says Eikefet.

Cheaper? Modalin is the second smallest municipality in Norway.

Modalin is one of the few municipalities that choose not to sell electricity outside the municipal boundaries.

The municipality of Bykle in Setesdal makes a good profit from selling licensed power on the market. Rising electricity prices give Bykle five million kroner more than expected in municipal coffers.

Although hydroelectric power is the largest source of income for the northernmost municipality of Citsdale in Agder, the 960 residents pay the same amount of electricity as the others.

To the west at Agder, at Sirdal, The municipality will give 3000 kroner to each inhabitant When the price of electricity is too high.

The scheme, which is unusual, will be optional.

In the North, too, it was profitable to live during periods of exorbitant energy. Since 1969, residents of Nordland, Troms and Finnmark have stopped paying VAT on electricity.