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Is an Electricity Price Hike Coming in Norway? Everything Will Be Decided on December 5
The agreement between the governing parties may influence the direction of Norwegian climate policy. Fot. Adobe Stock, licencja standardowa (zdjęcie poglądowe)
The Norwegian Renewable Energy Association (Fornybar Norge) believes that the budget agreement between the Labour Party, the Centre Party, and the Red Party could lead to an increase in electricity prices. The organization points to a reduction in the previously planned energy tax cut by NOK 1.5 billion.
The presented budget agreement limits the government's plan to reduce the energy tax by NOK 1.5 billion. This decision was immediately met with a response from Fornybar Norge.
The head of the organization, Bård Vegar Solhjell, emphasizes that a higher fee could increase electricity costs for households and businesses. He notes that Norway is facing a broad energy transformation. Electrification is expected to remain one of the key tools for change.
The head of the organization, Bård Vegar Solhjell, emphasizes that a higher fee could increase electricity costs for households and businesses. He notes that Norway is facing a broad energy transformation. Electrification is expected to remain one of the key tools for change.
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Controversial Changes to the Energy Tax
Solhjell claims that limiting the reduction of the energy tax in practice means its complete cancellation. He recalls that the government originally planned a cut intended to support the energy transition. According to him, the current arrangements weaken the incentive to choose electric solutions.
In an interview with the daily Dagens Næringsliv, he points out that this is a step contrary to the declared green direction. He stresses that political decisions should strengthen, not hinder, the process of change.
In an interview with the daily Dagens Næringsliv, he points out that this is a step contrary to the declared green direction. He stresses that political decisions should strengthen, not hinder, the process of change.
The government originally planned to cut the energy tax to support the green direction of change.Photo: Wikimedia Commons/Creative Commons Attribution 2.5 Denmark/Magnus Fröderberg/norden.org
Uncertainty Surrounding the State Budget
The absence of the Socialist Left and Green Party from the agreement means that the budget proposal does not have a formal majority in the Norwegian Parliament. The vote is scheduled for December 5.
This situation adds further uncertainty to the final financial decisions. The discussion on the shape of the energy tax remains one of the central points of contention. The parties hope to find a solution that will allow the budget process to be completed on time.
This situation adds further uncertainty to the final financial decisions. The discussion on the shape of the energy tax remains one of the central points of contention. The parties hope to find a solution that will allow the budget process to be completed on time.
Further Decisions Still Await Politicians
In the coming days, it will become clear whether politicians will decide on further changes to the provisions concerning the energy tax. The arrangements may determine the direction of Norwegian energy policy.
Both the interests of consumers and the goals related to the future transformation remain in focus. Discussions in the Norwegian Parliament may still introduce amendments to the presented proposal.
Both the interests of consumers and the goals related to the future transformation remain in focus. Discussions in the Norwegian Parliament may still introduce amendments to the presented proposal.
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