Norway's package of measures to deal with electricity situation may not benefit timber industry, says Treindustrien; under current plan, wood processors could fall outside new fixed-price agreement scheme and cannot use industrial power agreements

Sample article from our Government & Public Policy

OSLO, Norway , October 7, 2022 (press release) –

The arrangement of the Government's package of measures for companies in the electricity situation may cause the timber industry to fall between two chairs. Companies risk falling outside the new fixed-price agreement scheme and cannot use industrial power agreements.

The Government pointed out today that the most important measure for predictability in the electricity situation going forward will be a better opportunity to enter into favourable fixed-price agreements. In the proposed regulatory changes to the tax regime that will facilitate this, it is proposed that activities in the production of lumber and goods of wood should not be included.

"It is crucial that the Government and the Ministry of Finance ensure that the timber industry also falls under the fixed-price agreement scheme. It is disastrous as the proposal from the Ministry of Finance now exists, says Heidi Finstad, CEO. in the Wood Industry.

The Ministry of Finance has pointed out that activities in the production of wood can get industrial power agreements, but this requires both a 7-year lock-in period and a very high electricity consumption. For many of the companies in the timber industry, such agreements are therefore not available or a real alternative.

"In other words, we risk that our companies will be left without offers of favourable long-term agreements, as the Government is planning for the power companies and electricity suppliers to offer businesses," says Finstad.

"This creates uncertainty that is completely unsustainable, as a result of increased electricity costs that both have a severe impact on operating costs and jeopardise the investments that are underway for a green industrial boost. The Ministry of Finance must urgently clarify that the tax changes for the fixed-price agreements will also apply to wood-based industry," says Finstad.

Nor does the arrangement of the electricity support scheme meet the needs of companies in the timber industry because raw material costs are so high. When the support scheme is based on electricity costs as a share of turnover, it does not affect the timber industry.

"By using other operating expenses in accordance with accounting legislation, the scheme would have affected the actual situation far better. Higher electricity costs are now having a severe impact on the bottom line of many companies in the timber industry. When suppliers are affected in this way, it also affects the construction industry indirectly," says Finstad.

Read our consultation response to the Ministry of Finance on resource rent tax and fixed-price agreements here

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

See our dashboard in action - schedule an demo
Jason Irving
Jason Irving
- SVP Enterprise Solutions -

We offer built-to-order government & public policy coverage for our clients. Contact us for a free consultation.

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.