Norway's energy ministry is confident that its fixed price for electricity scheme — Norgepris — complies with its European Economic Area (EEA) obligations and is not "subject to notification" to the European Surveillance Authority (ESA) for review, it told Argus.
Norway is currently responding to questions submitted by the ESA — a body responsible for ensuring compliance with the rules governing the EU's European Free Trade Association (EFTA) — in October. It confirmed that it will respond in full by 15 December.
The questions also detail ESA's view that the scheme should have been notified for review to measure its effect on national and international market competition, in line with Article 3 of the Electricity Directive, as stated in a letter ESA shared with Argus.
The energy ministry has since "had a constructive meeting with ESA", during which it made clear that it considers Norgepris "to be fully in line with [its] EEA obligations", the ministry's state secretary Marte Grindaker told Argus.
Norgepris has been adopted by more than 1mn electricity meters since its launch in October, representing around 35pc of homes and 48pc of holiday homes. That share increases in Norway's most expensive power areas, up to 43pc in NO1 and 58pc in NO2. And two NO2 communes — Bykle and Aseral — registered sign-up rates of above 80pc.
Norgepris consumers increased their power consumption by 3.8pc on the year in October, while demand from consumers retaining regular tariffs increased by just 1.7pc, according to distribution system operator Elvia data.
Despite Norgepris consumers outpacing their regular tariff counterparts, the ministry maintains that "it is too early to draw conclusions from the consumption data", Grindaker told Argus, noting that the "household consumption in question represents only a limited share of total national electricity use". Total electricity use from households reached 3.3TWh last month, up by 1.9pc, representing 30pc of all consumption, according to data from Statistics Norway.
