Norway should not cap household power prices, PM says

The Norwegian government does not support an opposition proposal to impose a cap on household electricity prices, Prime Minister Jonas Gahr Stoere of the ruling Labour Party told parliament on Wednesday.

The government has already introduced a subsidy scheme that pays a portion of household power bills amid a surge in energy prices. For the first three months of 2022, the government's scheme will pay 80% of the portion of power bills above prices of 0.70 crowns per kilowatt-hour (KWh) for consumption of up to 5,000 KWh per month.

The right-wing opposition Progress Party has proposed a plan that would cap the total price paid by consumers at 0.50 crowns per KWh. But imposing an upper limit like the one sought by Progress could lead to unintended consequences, Stoere said.

"Prices could, as a rule, gravitate towards the maximum," Stoere said, warning customers could miss out on market forces setting prices lower than the cap.