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A new electricity subsidy program for heating network customers

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From November 6, households using heating systems based on electricity can apply for a subsidy for the purchase of heat energy. This program aims to compensate households for high heat prices resulting from the additional costs incurred by heat suppliers to produce heat from electricity.

On behalf of the Ministry of Petroleum and Energy, NVE has created a new electricity subsidy program addressed to customers of heating networks. On the website narvarmeordningen.no Households and housing cooperatives connected to heating systems based on electricity can apply for reimbursement of the costs of purchasing heat energy from February 2022. NVE accepts applications from November 6, 2023.

The system does not cover heating systems subject to price regulation, heating nodes covered by the regular electricity subsidy system and plants using mainly energy carriers other than electricity.

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To avoid a complicated application process, all thermal customers will receive the same subsidy for each kilowatt-hour of thermal energy purchased, regardless of how much electricity the supplier uses to produce the heat. Additionally, future benefits will be calculated by temperature correction of historical consumption. This way, most customers will only need to submit one application.

The government had already announced that it would provide electricity subsidies to domestic users of local heating systems, and the draft regulations were consulted on. OED has defined program regulations that will enter into force on November 6. The calculation of the benefit is based on the regular electricity benefit scheme. In the 2023 budget, 60 was allocated for the program million NOK. A further allocation of NOK 2024 million has been proposed for 22,5.

The first payment will be made in December 2023. The remaining payments will be made quarterly.

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Source: regjeringen

Also read: What influences the price of car insurance?

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