Norway Raises Norgespris to 45 Ore Amid Expert Warnings Over Power Conservation
The Norwegian government has announced an increase in its subsidized fixed-price electricity scheme, known as Norgespris, lifting the baseline price from 40 to 45 ore per kilowatt-hour before value-added tax beginning next year. Prime Minister Jonas Gahr Støre and Energy Minister Terje Aasland defended the adjustment as necessary to manage escalating spot prices, establishing a total budget framework of 16,4 milliarder kroner for electricity support in 2027, as reported by VG.
Norway Energy Experts Criticize Subsidies for Weakening Conservation Incentives
Gunnar Eskeland, a professor of resource and environmental economics at the Norwegian School of Economics (NHH), warned in an interview with TV 2 that the subsidized pricing structure weakens public motivation to save electricity and prompts unnecessary environmental interventions. Eskeland argued that the government should have raised the price to 50 or 60 ore per kilowatt-hour, or scrapped the scheme entirely, to prevent artificially high demands for grid expansions and new power generation.
Lilleholt calculated that if electricity prices turn out to be significantly lower than future price forecasts indicate, and with the assumption that participation matches current levels in 2027, the state’s total financial exposure could exceed 22 milliarder kroner, according to figures covered by NRK. Lilleholt also pointed out that the government missed the mark considerably on costs this year, noting that while the initial estimate was under 10 milliarder, the actual cost is closer to 25 milliarder kroner.
Labor Unions and Political Leaders Clash Over Price Hikes
The 12.5 percent price increase has drawn sharp criticism from political allies and labor organizations. Christian Justnes, leader in Fellesforbundet and a member of the Labour Party’s central executive committee, told NRK that the adjustment is a poor decision that outpaces general societal inflation. Kine Asper Vistnes, leader in LO, and chief economist Roger Bjørnstad echoed these concerns during a press seminar covered by Dagsavisen, warning that the sudden cost jump will strain household budgets alongside upcoming interest rate hikes from Norges Bank. During the Monday press seminar, Bjørnstad and LO leader Kine Asper Vistnes advocated for maintaining Norgespris at its current level.
Government Officials Defend Long-Term Predictability and Safety
Energy Minister Terje Aasland countered the criticism by explaining that future electricity prices are projected to run significantly higher than general inflation. Aasland noted that without the upward adjustment, the baseline price would have needed to exceed 50 ore per kilowatt-hour. Prime Minister Støre emphasized to VG that the Norgespris program remains a vital instrument to shield citizens from volatile market costs and provides crucial financial predictability through the remainder of the current parliamentary term until 2029. When asked whether the scheme balances out to zero, Aasland stated that he does not have the figures for that here and now, and when questioned about whether the government risks having to continuously subsidize people’s electricity bills so they avoid paying actual costs, Støre cautioned that everyone has experienced the need to be careful with bombastic predictions about energy markets.
Frequently Asked Questions About the 2027 Norgespris Changes
How much will Norgespris cost consumers including tax?
With the 5 ore increase added to the baseline rate, the price rises from 40 to 45 ore before value-added tax, which equals 56 ore per kilowatt-hour including tax, as detailed by VG and NRK.
What financial support does a typical household receive under the scheme?
Energy Minister Terje Aasland stated in VG coverage that a household in the southern-west NO2 price region consuming 16,000 kilowatt-hours will receive 8,700 kroner in support next year.
Can households currently sign up for the updated Norgespris period?
According to reporting by VG, it is not yet possible to order Norgespris for the upcoming period, as the current agreement remains active through December 31, 2026.
Worth a look