Statnett’s tariffs for 2022 kept at low level by trading revenues

The tariff rate for consumption for 2022 has been set at NOK 325/kW, or around 5 øre per kWh for general consumption. This represents a reduction from NOK 393/kW in 2020. The tariff will increase by NOK 25/kW compared with 2021, when the rate included a 25 per cent reduction to help consumers cope with the economic effects of the ongoing pandemic.

“It is important to ensure low costs for the transmission grid at a time when the need for the grid is increasing in light of the green change of pace currently underway in Norway. This makes it particularly pleasing to note that the congestion revenues from the interconnectors are helping keep the costs of the transmission grid in Norway below those of our neighbours. The tariffs for 2022 are lower than they were in 2020,” says Knut Hundhammer, Executive Vice President and CFO at Statnett.

The tariff revenues, together with congestion revenues, are intended to cover Statnett’s total costs relating to investments, operation and maintenance of the transmission grid. Grid activities are regulated as a natural monopoly. This means, among other things, that the Norwegian Energy Regulatory Authority (RME) sets an income cap for Statnett’s total revenues, called “permitted income”. The permitted income for 2022 is estimated at NOK 10 billion.

Tariff rates 2022

* The tariff rates in 2021 were reduced by 25 per cent as a temporary measure to help Norwegian consumers deal with the economic consequences of the coronavirus pandemic. The reduced tariff was set at NOK 300/kW. The costs of the reduced rate were to be reimbursed through higher tariffs in future years.