Stats Norway: Price increase would have reached 9% without government power subsidy scheme

Statistics Norway calculates that the price increase over the past year would have been 9.0% in August without the government’s electricity subsidy.

This is 2.5% above the actual increase in the Consumer Price Index (CPI) from August 2021 to August 2022.

They believe there is reason to believe that electricity subsidies themselves contributed to higher electricity prices in the market. Because demand is higher than without subsidies.

However, SSB writes that it is difficult to know to what extent market prices have been affected.

If the electricity tax had not been temporarily reduced, the increase in electricity prices would have been about 87%, including grid rents, over the same period.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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