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- NITO takes the situation very seriously and calls for greater cooperation from politicians - says NITO Vice President Kjetil E. Lein
The energy crisis is worrying
NITO is Norway's largest organization of engineers and technologists with 97 members.
- We receive inquiries from members who are concerned about their private finances due to extreme electricity prices. At the same time, many of our members work in companies that depend on electricity at a competitive and predictable price, says Lein.
The state must come up with better measures
The majority in the Storting said they would call an urgent meeting on rising electricity prices and record low levels of water in eastern and south-western Norway. The government is currently working on various measures, such as export restrictions, storage filling requirements, and support for electricity-sensitive companies.
Now the politicians have to stand together
– NITO is pleased that politicians are working hard to resolve the crisis. Unfortunately, there is no easy solution. At the same time, we note that there is great disagreement on possible measures. The most important thing now is to introduce measures that will ensure that Norwegian companies have access to competitive energy prices and ensure that companies can maintain employees at work, says Lein.
- Now politicians have to stand together and cooperate as best as possible. Resolving the electricity crisis in the short and long term requires decisive political action. Lein continues the crisis, which affects both private individuals and the business world.
More predictable energy prices
- Many small and medium-sized enterprises in southern Norway are currently facing problems. NITO believes that they should receive temporary support from the government for electricity depending on their assets, especially as many of them do not have long-term energy contracts. In the current environment, competition between firms is skewed, says Lein.
Unusually high electricity prices have led to large additional state revenues. Therefore, NITO believes that the state must come up with new measures.
“Energy support systems must provide predictability for residents and businesses, that's a clear message from Lein.
Long-term solutions
Along with a number of other organizations, NITO has asked the government to allocate NOK 1 billion to support proven and mature energy activities in households in the state budget for 2023. In addition, we are asking for separate target programs for energy activities in commercial, municipal and agricultural buildings.
- The government must not forget about long-term solutions. It should ensure that such extreme prices do not have an impact on households and businesses in the future. This can initially be achieved through a reduced electricity tax, reduced VAT, or other austerity measures, Lein says.
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The long-term solution also means large investments in the development of new renewable energy sources, such as offshore wind energy. Infrastructure and energy transmission should also be looked at more closely to avoid large price fluctuations in the future.
"In the long term, we expect the Energy Commission to come up with proposals that will give industry access to energy at prices that ensure competitiveness and jobs," says Lein.
International cooperation is important
In the debate on measures, it is important not to lose sight of the importance of international cooperation. Regional and European cooperation in the energy sector is positive in the long term and ensures the efficient use and use of resources across national borders
– The Norwegian authorities must have independent control over all security-related decisions energy in Norway, says Lein.
Source: Nito
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