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ENERGY

Norway accepts European military aid to secure oil sector

Norway's prime minister said Friday the country, which has become Europe's biggest supplier of natural gas, had accepted military contributions from France, Germany and Britain to secure its oil and gas sector.

Published: 30 September 2022 19:01 CEST
Pictured is Norwegian PM Jonas Gahr Støre
File Photo: Norway's Prime Minister Jonas Gahr Store addresses the 77th session of the United Nations General Assembly at the UN headquarters in New York City on September 22, 2022. (Photo by Tomothy A. Clary / AFP)

“We are in discussions with our allies to increase the (military) presence in the Norwegian sector and have accepted German, French and British contributions,” Norwegian Prime Minister Jonas Gahr Store told a press conference, following the alleged sabotage of the Nord Stream pipelines in the Baltic Sea.

His comments came days after four leaks were discovered in the Nord Stream gas pipelines in the Baltic Sea, which bring Russian gas to Europe.

The leaks were caused by underwater explosions corresponding to hundreds of kilogrammes of explosives and look like a deliberate act, a Danish-Swedish report said Friday.

“I understand that people are worried about the consequences that the situation in the Baltic Sea may have and that something similar may happen to the oil installations,” Store said.

“We have no indication that there are any direct threats to the Norwegian oil sector,” the Norwegian leader added.

Following the Nord Stream explosions and leaks, Norway had already said it would beef up security around its oil installations, amid allegations of sabotage.

“The government has decided to put measures in place to increase security at infrastructure sites, land terminals and platforms on the Norwegian continental shelf,” Norwegian Energy Minister Terje Aasland said in a statement on Tuesday.

Norway has become Europe’s main gas supplier in the wake of the war in Ukraine, taking the place of Russia.

The Scandinavian country has a vast network of pipelines, stretching for almost 9,000 kilometres, linking it to the continent, which experts have said are at risk of sabotage.

On Friday, Støre said that two Norwegian Coast Guard vessels had been diverted to patrol near oil platforms and that the area was also being monitored by a maritime patrol aircraft.

The Norwegian prime minister met several European leaders and the head of NATO on Friday, and is expected to visit the Sleipner oil platform in the North Sea on Saturday.

Norway, as well as Britain, France, and Germany, are all members of the NATO military alliance.

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ENERGY

Why consumers in Norway will see their energy bills increase

Consumers in Norway are charged for being connected to the grid. Energy customers in Norway can expect to see this cost increase significantly in the coming years.

Published: 12 September 2024 10:58 CEST
Why consumers in Norway will see their energy bills increase

The average household in Norway can expect grid fees to increase by between 20-30 percent, Norwegian newspaper VG reports.

Costs will be increased as energy firms will invest in improving energy infrastructure. 

“It is expensive to build networks, and there is likely to be a significant increase in the network fees in the future,” Kjetil Lund, a director at the Norwegian Water Resources and Energy Directorate (NVE), told VG.

The NVE has published a projection on grid fees between 2024 and 2030.

Norwegian newswire NTB has estimated that households could see an annual increase of 1,700 kroner in grid rent.

The increases will vary across the country and will depend on the provider. Those in Trøndelag are expected to see the most significant increases. There, grid fees will increase in price by around 30 percent.

Residents in eastern Norway can expect an increaser of 25 percent, while northern Norway will get a slightly lower increase just below the 25 percent mark. Those in southern Norway and the west will receive the smallest increases or just under 20 percent.

The increases don’t take into account additional costs like VAT.

“It will probably vary a little. Higher bills are no fun, but the reality is that it costs money to expand the network and upgrade what we already have. There is a need to build more networks to facilitate business, climate change and electrification. But it’s not free,” Lund said of the increased charges.

In the coming years, energy firms are set to invest 170 billion kroner in upgrading Norway’s energy infrastructure.

Elvia, Norway’s largest provider, has already announced two grid rent increases, a 14 percent increase in October and a second increase in the winter.

The current energy subsidy scheme implemented by the government where the state covers 90 per cent of the electricity price above 73 øre per kWh – or 91.25 øre including VAT will not apply to the increased grid fees.

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