The Norwegian parliament has adopted a support scheme for electricity costs aimed at households. When the market price of elspot on average exceeds NOK 0.7 per kilowatt hour for one month, the state will provide direct support to electricity customers, with a support share of 55 percent in December 2021 and 80 percent in as of January 2022. The support is provided for a monthly power consumption of up to 5000 kilowatt hours. The CPI measures the support scheme for electricity costs as a direct discount on electricity prices aimed at households. The CPI takes the five bidding areas into account when calculating the electricity index. For the bidding area where the elspot prices on average for the month do not exceed NOK 0.7 per kilowatt hour (excl. VAT), the actual market prices paid by households are used. While compensated prices are used for elspot in bidding areas where the average elspot price for the month does exceed NOK 0.7 per kilowatt hour. The discount is applied to all contract types for electricity that are included in the CPI for the given bidding area. The value added tax (VAT) is added to the price in bidding areas that are not exempt from this. As for the period from April to December 2022, a reduced While tax on grid rent has also been adopted. The electricity tax is included in the CPI in the calculation of the index for grid rent.
CPI up 6.3 per cent last 12 months
From June 2021 to June 2022 the Consumer Price Index (CPI) increased by 6.3 per cent, while the CPI adjusted for tax changes and excluding energy products (CPI-ATE) rose by 3.6 per cent. The CPI increased by 0,9 per cent from May 2022 to June 2022, while the CPI-ATE rose by 0.5 per cent in the same period.
Published: 11 July 2022
¹ The indices included for the components electricity and grid rent are adjusted for tax-changes, which means that the effect the support scheme has on the electricity prices is taken out of the calculations. Thus, this is a hypotetical CPI that shows what overall price growth would have been if no support had been introduced by the government. The electricity subsidy consists of the govenrment's temporary electricity subsidy scheme and lower electricity tax.