Subsidies Keep Lights On in Norway

According to NRK, the agreement between the center-left government and the socialist party will pay out a total of 1.2 billion Norwegian kronas (€115 million) in electric-bill support "to the most vulnerable groups in society."

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According to NRK, the agreement between the center-left government and the socialist party will pay out a total of 1.2 billion Norwegian kronas (€115 million) in electric-bill support "to the most vulnerable groups in society."

On Monday, the Norwegian government presented a package to Stortinget, the parliament, for electric-power subsidies to businesses and low-income households. A story from public broadcaster NRK quotes member of parliament Torgeir Knag Fylkesnes of the Socialist party:

The autumn will be a big test as to whether we are ready to stand by those who are struggling with expenses in a time of crisis. When people are having a hard time with their electricity bills, it is important that society backs them up in an appropriate fashion. 

According to NRK, the agreement between the center-left government and the socialist party will pay out a total of 1.2 billion Norwegian kronas (€115 million) in electric-bill support “to the most vulnerable groups in society.”

Norwegian media have published several stories recently about small businesses struggling with electricity bills. On October 11th, daily newspaper Dagbladet in the western city of Bergen reported:

Electricity bills for wholesale and retail grocery businesses have skyrocketed recently. This has been especially burdensome for small, local stores, which are already operating with small margins. Many store managers and wholesalers are now facing a tough, uncertain winter, fearing that the government’s proposed electricity subsidies will not include them.

In a story from Larvik in southern Norway, news site e24.no reports on Dags Marked, a home-furnishings retailer owned by a local family. The high electricity costs became the last straw:

Two weeks ago, co-owner and manager of daily operations Arve Dag Hanssen decided that it was no longer possible to keep the store open that his father founded in 1983. The 54-year-old has himself worked at Dags Marked since he was 15. 

In their report on the parliamentary agreement, NRK reports that small, local grocery stores will be eligible for electricity subsidies. 

Sven R Larson, Ph.D., has worked as a staff economist for think tanks and as an advisor to political campaigns. He is the author of several academic papers and books. His writings concentrate on the welfare state, how it causes economic stagnation, and the reforms needed to reduce the negative impact of big government. On Twitter, he is @S_R_Larson and he writes regularly at Larson’s Political Economy on Substack.

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