- Such an extraordinary situation requires extraordinary measures. I am delighted that today we can present good and targeted measures to help ordinary people emerge from the energy crisis. This is a strong response to what many people experience as an acute and difficult situation, says Prime Minister Jonas Gahr Støre.

Households will receive support for energy consumption up to 5 kilowatt hours of their monthly consumption. The program will be valid from December 000 to March 2021 inclusive. It will be managed through network companies. The government will submit the draft to the Storting as soon as possible in the form of a proposal.

The program complements measures already announced, such as Housing Benefit and Student Support.

– This will mean an estimated five billion kroner that goes directly to paying people the top bill. This is an addition to tax cuts on electricity, increased housing allowance and student support. We wanted to hit it big, when we spend so much money it's important that everyone enjoys it. Now we hope that it will be easier for many to go away for Christmas, regardless of whether you live in a drafty house, an apartment or on a farm, says Finance Minister Trygve Slagsvold Vedum.

The first deduction is planned for January, when the electricity bill for December will be paid

The system works so that households receive a deduction from the bill when electricity prices are unusually high. When the market price of energy exceeds an average of 70 øre per kilowatt hour for a month, the state will compensate for half the price above that level. The part paid by the state is deducted from the bill of the network company or electricity supplier.

– Households now receive deductions on their invoice when electricity costs are particularly high. The first deduction is planned in January, when the electricity bill for December is paid. This program benefits ordinary people people all over Norway, says Minister of Petroleum and Energy Marte Mjøs Persen.

The system has been designed so that it still pays off to reduce electricity consumption.

Support for farms homework is part of it a larger package of actions aimed at helping electricity consumers.

In addition, the government has initiated a dialogue with network companies to make it easier for more people to postpone payments.

Program facts

If the average monthly spot price for electricity exceeds 70 øre per kilowatt hour, the state supports the electricity costs of households.

Norway's electricity system is divided into five different price areas. It is the spot price for energy in the appropriate price range to which the household belongs, which is the basis for calculating the possible support.

The state will compensate half of the price exceeding 70 øre per kilowatt hour for energy consumption up to 5000 kWh per month. The amount that will be compensated will be independent of the type of electricity contract owned by the household.

Examples:

For a single-family household that uses 3280 kilowatt-hours in December, the program may mean support of SEK 1025 for that month. For a household that lives in an apartment and uses 1336 kilowatt hours in December, this could mean a contribution of 418 kronor. The calculation uses an example energy price in southern Norway in December, corresponding to 120 øre per kilowatt hour.

What the support actually becomes depends on how much electricity is consumed by the household. It is also important how the price of energy is shaped in the area where you live.

Source: regjeringen

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