Norwegian state revenue from hydropower surges, funding electricity price and support schemes
The government reports that income from domestic hydropower has almost doubled, providing enough money to cover the national electricity price and the support program.
According to the new budget draft, the state's take from Norway's hydropower sector has risen dramatically, now covering the costs of the revised national electricity price and the household support program. The plan also includes dividend payouts from the fully state-owned utility Statkraft and revenue from electricity VAT and other levies, together forming the bulk of the year's fiscal intake. The "norgespris" is set to increase to a higher cent per kilowatt-hour, while the support scheme's eligibility threshold will be lifted slightly.
Opposition parties, including the Green Party, Centre Party, Socialist Left and Red Party, have voiced strong objections to the proposed tightening, arguing it exceeds recent price growth. Energy Minister Terje Aasland defended the adjustments as necessary to keep household electricity costs predictable amid volatile market prices.
Why it matters
Higher state hydropower income allows the government to fund electricity price reforms and support, affecting household energy costs.
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