Background information

On 16 September 2022, the government presented a strategy to support businesses weighed down by high electricity costs. Among the measures was a new temporary application-based scheme for businesses. The aim was to secure jobs and local businesses and in areas of Norway with particularly high electricity prices. Companies can apply to have part of their electricity bill covered and to have part of the investment cost for eco-friendly measures covered. The energy subsidy scheme for businesses was launched 24 November 2022.

Content of measure

The temporary energy subsidy scheme for businesses was directed toward the most energy exposed companies. Businesses with at least 3% electricity intensity can apply for grants to pay the electricity bill and to invest in energy measures. Electricity intensity is calculated as the electricity costs' share of the company's turnover. The company's electricity costs in the first half of 2022 must amount to 3% of the company's turnover in the same period to be covered by the scheme. Companies that receive subsidies will be restricted from paying dividends in 2023. Companies that pay dividends will have to pay back the subsidies received.

Support under the scheme will cover part of the company’s electricity bill and can also cover part of investment costs for energy-saving measures. The company has to carry out energy mapping and will then be entitled to support up to 25% of the electricity price above NOK 0.7 (€0.07) for the months of October, November and December 2022. If the company chooses to invest in energy-saving measures as well, it will be entitled to receive support up to 45% of the electricity price over NOK 0.7 (€0.07) for the same period. In addition, the company can receive a grant of up to 50% of the investment costs for energy-saving measures.

Use of measure

By 22 December 2022, support under the Energy Subsidy Scheme amounted to NOK 2.8 billion (€280 million). The majority of the funding had gone to support energy-saving measures in the companies. Statistics show that 3,186 companies had received support. Over 33% was in the business of rental and operating of own or leased real estate. Accommodation was the second largest economic activity that received support.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Social partners jointly Employers' organisations	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Agreed (outcome) incl. social partner initiative	Agreed (outcome) incl. social partner initiative
Form	Direct consultation outside a formal body	Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

• Social partners jointly
• Main level of involvement: Peak or cross-sectoral level

Involvement

The government has worked out a package of measures together with the social partners. The minister of Business, Jan Christian Vestre, said that in light of the situation in the Norwegian economy the design of the scheme had been demanding. However, the measures proposed by the government was supported by the Norwegian Trade Union Congress (LO), the Confederation of Norwegian Enterprise (NHO) and Virke, The Federation of Norwegian Enterprise, although the organisations had wished for more.

Views and reactions

The social partners supported the measure.

Sources

• 30 September 2022: Help is now coming to the companies (www.regjeringen.no)