Norway’s national electricity subsidy program, Strømstøtte, has undergone significant updates effective September 1st, 2023. These changes aim to improve the reliability and predictability of services for households across the country. This blog post explores the key modifications and their implications, especially for charge point operators (CPOs) collaborating with Housing Associations.
Hourly Calculation and Payment Structure
As of September 1, 2023, the most notable change is the transition to an hourly calculation for electricity subsidies. Payments will now be based on the hourly electricity price, kicking in if the price exceeds 70 øre per kWh. Consumers will receive support only for the hours when the spot price surpasses this threshold in their price range. The subsidy covers 90% of the electricity price over 87.5 øre, including VAT, for up to 5000 kWh. Any consumption beyond this level is charged at the market price.
Consistent Subsidy Degree and Extension Until 2024
To ensure a more consistent support system, the government has proposed maintaining a subsidy degree of 90% throughout the year, eliminating previous seasonal variations. This change is set to take effect from June 1, 2023. Additionally, acknowledging challenges posed by high electricity prices, the government has extended the subsidy scheme until 2024, showcasing a commitment to providing financial relief during periods of exceptionally high energy costs.
Sector-Specific Extensions and Inclusions
The program’s impact extends to the agricultural sector and voluntary organizations, with existing support schemes extended until 2024. Private grids, commonly referred to as grid grids, are now part of the subsidy scheme, directing support to customers registered at the metering point connected to the network company.
Business-Focused Simplifications
The government has introduced changes to facilitate fixed-price agreements with variable consumption for businesses, removing the need for predetermined consumption agreements. Industrial companies, previously limited to seven-year power agreements, now have the flexibility to enter fixed-price agreements lasting up to three years.
Innovation for Household Customers
For household customers relying on district heating systems based on electricity, the government is establishing an application-based electricity subsidy scheme. This extension of support addresses a group of households that fell outside the previous subsidy framework, providing a more inclusive approach.
Conclusion
As part of ongoing efforts to refine and optimize Norway’s electricity subsidy program, these proposed changes reflect a strategic approach to enhance predictability, support various sectors, and align with the evolving energy landscape. Stay tuned for more details on the specific changes proposed and their potential implications.
