Monday, May 16

Energi Norge warns against maximum price for electricity

Maximum prices can cause critical energy shortages in Norway and stop the green shift, according to Energi Norge.

Low sun behind thin clouds over high voltage masts in Nordmarka in Nittedal.

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A maximum price for electricity has been aired by Frp, Rødt and SV, but the interest and employer organization Energi Norge warns against this, writes Klassekampen.

– The introduction of a maximum price is the best way to turn an electricity price crisis into a real energy crisis, says Toini Løvseth, director of market, customers and electrification in Energy Norway.

– The cost of different power production varies with weather, time of year and form of energy. A fixed maximum price of, for example, 35 øre will mean that it will not be profitable for power producers to supply power when the costs of production are higher than the maximum price set by politicians. The result could be a lack of power. Theoretically, simply blackout, says Løvseth.

Magnus Marsdal, leader of the think tank Manifesto, reacts to Energy Norway’s analysis.

– It is really a scandal if the directors in the power industry threaten to stop delivering the power we own together, Marsdal says.

Would not introduce maximum price

The government has introduced a support scheme for electricity which is expected to cost NOK 8.9 billion, but has previously refused to intervene in the market with a maximum price for electricity. In December, the Minister of Petroleum and Energy rejected the maximum price in a letter to the Storting.

“Price regulation is an intrusive measure that can have unintended consequences”, wrote Marte Mjøs Persen.

The question of maximum price came from other deputy chair Sofie Marhaug (Red) in the Storting’s energy and environment committee, who wondered whether the government could and would introduce a maximum price for electricity after law on price measures after a period of record high electricity prices.

also read

Will not introduce maximum price of electricity: – May have unintended consequences

The social enterprises proposed the maximum price

In December, Samfunnsbedriftene also proposed a maximum price for electricity, to ensure legitimacy in energy and climate policy. The employer and interest organization represents 540 municipally owned enterprises. Among these are 160 companies in the energy industry, including a number of small and medium-sized grid companies.

– We propose that there should be a fixed maximum price for electricity to households for sober consumption. Then you can be sure that you can afford the electricity, said director of energy Cecilie Bjelland in Samfunnsbedriftene to E24 in December.

– We need the population’s trust to be able to implement large and ambitious goals for electrification and the green shift. If people do not think that their wallet will cope with this shift, then the politicians will not get them with them, Bjelland said.

also read

Suggests maximum price for electricity: – We need the trust of the population

Reference-www.aftenposten.no

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