Electricity price, Center Party | Marit Arnstad believes we should renegotiate the power exchange agreements

The ongoing electricity crisis has created challenges for many Norwegians. On the Facebook group “we who demand cheaper electricity” with over 500,000 members, Norwegians talk about a Christmas full of worries.

Some people use the oven in the living room to heat the food, others try to get more heat in the house by lighting tealights. Dissatisfaction with our elected representatives is also a frequently discussed topic.

In addition, more members want to cut electricity exports to the rest of Europe and believe it can ensure us a cheaper electricity price.

Also read: Norway cut electricity exports – the price went up

The cost of producing electricity is around 11.57 øre per kilowatt hour, according to a calculation of the Ministry of Petroleum and Energy, but the market price today is at a much higher level.

On Monday the 3rd of Christmas, the electricity will average cost 1 kroner and 79 øre per kilowatt hour.

Today, Norway has energy cooperation with the rest of the EU through the EU agency Acer, the EU’s third energy market package. While the market determines electricity prices, Acer has rules for the distribution, production and supply of electricity. Norway decided to join Acer in 2018 with a majority from the Labor Party, the Progress Party, the Conservatives, the Liberals and the Green Party.

Now Sp-top Marit Arnstad tells DN that she will renegotiate the power exchange agreements and discuss Acer’s future role.

Also read: Fixed price agreement on electricity? These are the experts’ recommendations

– We are in a difficult situation

Arnstad tells the newspaper that the structural causes of the power crisis can be serious, and points out that several countries are in the process of getting rid of adjustable power.

– Especially when the UK has closed down gas storage, when Germany will remove 17 nuclear power plants, when Belgium has clarified that they will remove one from 2025, and when the new North Stream pipeline does not come into place between Russia and Germany, you take a lot of adjustable capacity out of the European market. It happens before you have got renewable power up and standing, says Arnstad to DN.

In this situation, our neighbors in Europe are more dependent on Norwegian hydropower, while the power that is actually to be sent back will not always be there when we need it.

– All this means that power exchange will no longer be exchange for Norway, but pure export. That the pressure on hydropower will be even greater. Our water reservoirs are important, but Europe also does not benefit from them being drained to a minimum. So we are in a difficult situation, and I believe that there is a reason why Norway should renegotiate the agreements on power exchange.

In addition, the politician believes that we must make the power producers and electricity suppliers more responsible than we do at present.

Also read: Right waterfalls forward: New sharp fall for Støre and Vedum

Confusion around Acer’s role

There is great disagreement among politicians, experts and interest groups about how much the Acer collaboration affects the high electricity prices.

Faktisk.no writes that Acer has little to do with the Norwegian electricity price, but the fact that Norway is connected to the European electricity market can lead to higher electricity prices.

Acer is becoming more of a symbol of the European power exchange.

On the other hand, the head of the study in the organization “No to the EU”, Morten Harper, believes that the connection to the EU’s energy union has an impact on electricity prices in Norway.

– If a new foreign cable is to be built, it is still the Ministry of Petroleum and Energy that grants the license, but the ACER affiliation means pressure politically, economically and legally, Harper wrote in a debate post in Nettavisen in December.

The post was a response to Øyvind Strømmen’s debate post “When ACER is blamed for electricity prices, there is actually cause for concern”.

Also read: The residents were furious when they saw the grid rent bill for November: – Only used the electric boiler for three days

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