Wants a rematch over the maximum price of electricity – The Norwegian Competition Authority warns – NRK Norway – Overview of news from different parts of the country
The EU allows member states to join stricter regulations on electricity prices due to the sharp rise in prices that has followed the gas price crisis and Russia’s invasion of Ukraine.
The European Commission writes that it sees, among other things, the possibility of introducing temporary price caps on electricity prices.
Red politician Sofie Marhaug believes the government must now reconsider its view of the maximum price of electricity:
– We believe that a maximum price of electricity of 35 øre must be introduced, together with a duty to cover and stricter export regulations with stricter requirements for the stand in the power reservoirs, she says.
The level is about three times as high as the price of conference power for 2022.
– But what do you think the consequences of this will be for those who make the power?
– There will be stricter regulation and they will earn much less than they do today. Now the power industry, which is public, is earning a huge summer on the sky-high electricity prices, she says.
The European Commission now supports in the member states can come up with urgent measures to regulate electricity prices. In France, the government has decided that electricity prices in the first half should only increase by 4 percent.
The consequences will apparently be that the state-dominated power producer EDF will suffer enormous losses.
Competition director Tina Søreide has little left over for the party’s proposal.
– If we were to use such a tool, we would create problems, which we do not need on top of the ones we have now, she says.
The Progress Party has proposed in the Storting maximum price of electricity of fifty øre for each kilowatt hour, based on the law on price measures. The proposal was voted down by a broad majority.
– Several negative consequences of price caps
The government has decided that the state will cover 80 percent of the electricity bill for prices over 70 øre per. kilowatt time the next year.
This will mean far higher electricity bills for people, than in a system where the maximum price is low, if electricity prices remain high.
But the competition director warns against several negative consequences of setting a price cap.
– We are concerned about security of supply, if the price of electricity is lower than it costs companies to buy electricity, then they will not deliver, and they may also go bankrupt. And if they go bankrupt, we fear that we may get a more concentrated brand, which leads to us getting even higher prices in the long run, says Søreide.
She says that a consequence of the use of the maximum price may be that the maximum price in practice becomes the current price, even if market conditions would otherwise indicate a lower price.
In a column on its own website, the Norwegian Competition Authority has written more about why the audit advises against the maximum price on power.
The government will study various measures – including the maximum price
State Secretary Elisabeth Sæter in the Ministry of Petroleum and Energy says that the government has little faith in a system where politicians determine the price of electricity.
But the government will still investigate politically controlled prices, she says.
– Red’s proposal to scrap the current system overnight and set a politically controlled price, could worsen the situation and in the worst case put the security of supply of people in danger. Men will study the power situation that has been, and then we will also assess the consequences of various measures, such as such a politician-controlled price, she says.