Norway to boost financial support for most vulnerable amid power price spike
22/10/2021 12:42
By Nora Buli
OSLO, Oct 22 (Reuters) - Norway's new centre-left government
on Friday proposed a one-off payment of up to 3,070 crowns
($369) for people receiving housing support in southern Norway
to offset the impact of record-high power prices.
The country is the latest to try to mitigate the impact of
high power prices on its citizens. On Thursday, France announced
a 100-euro ($116) payment, while the European Union recently
announced a number of measures it would consider to shield
consumers. urn:newsml:reuters.com:*:nL4N2RB1TS
"We see that the high power prices can be a big burden,
especially for those with weak finances," Minister for Local
Government and District Policy Bjoern Arild Gram said in a
statement.
The proposed additional payment in November would apply to
around 66,000 recipients of housing support in southern Norway,
out of a total population of 5.4 million.
The country is divided into five power price zones, with
wholesale power in the three southernmost and populous areas
hitting a record 146.26 euros per megawatt hour (MWh) on Monday.
Consumer prices are higher still after taxes and levies and,
with power widely used for heating, have a big impact on
personal finances.
Water reservoirs in the hydropower-dependent country remain
below their 20-year average and grid bottlenecks limit how much
power can flow from cheaper northern parts.
Southern Norway is also increasingly converging with even
higher price levels in continental Europe and
Britain. urn:newsml:reuters.com:*:nL1N2QX0A9
Norway will also likely see higher prices in future amid
rising demand from electrification of industrial processes and
higher costs for emission allowances, an analysis by regulator
NVE showed on Thursday.
Average wholesale power would reach roughly 50 euros/MWh by
2040, NVE said, up 10 euros from its previous forecast. Power
demand is set to rise from 138 terawatt hours (TWh) at present
to as much as 200 TWh in 2040.
($1 = 8.3291 Norwegian crowns)
($1 = 0.8593 euros)
(Reporting by Nora Buli
Editing by Mark Potter)
((Nora.Buli@thomsonreuters.com; (+47) 21 04 05 56; Reuters
Messaging: nora.buli.thomsonreuters.com@reuters.net))