“Norway Price” for Electricity and District Heating

‘The Norway Price is an important measure to allow people across the country to choose more predictable electricity expenses in a time of fluctuating and occasionally very high electricity prices. Compared to the current electricity support scheme, the Norway Price will make electricity costs more predictable, regardless of where you live in the country. At the same time, we are including district heating in the scheme. Equal treatment of district heating and electricity customers is important for customers, the power grid, and the district heating companies,’ said Minister of Energy Terje Aasland.

The Norway Price is a voluntary, state-funded scheme where households are settled against a fixed price per kilowatt-hour. The scheme applies to both permanent residences and holiday homes. From the 1^st of October 2025 to the 31^st of December 2026, the government proposes a fixed price of 40 øre per kilowatt-hour (excluding VAT). For electricity, grid fees, taxes, and supplier markups will be added. For district heating, additional costs will also apply.

‘Based on long-term electricity prices from March 2025, our calculations show that an average household in Southwest Norway (NO2) choosing the Norway Price will receive NOK 5,200 in support in 2026. Under the current electricity support scheme, the same household would receive NOK 2,050,’ said Aasland.

Both the Norway Price and the current electricity support scheme will apply to consumption up to 4,000 kWh per month per metering point. Most households have a monthly consumption below this. In 2024, 8.6 percent of households in Norway consumed more than 4,000 kWh in one or more months. For holiday homes, the Norway Price will apply to consumption up to 1,000 kWh per month per metering point.

The government proposes allocating NOK 1,265 million to the Norway Price in 2025. The additional cost of introducing the Norway Price compared to continuing only the current support scheme is estimated at NOK 800 million in 2025. This estimate assumes that 60 percent of households in Southern Norway will choose the Norway Price.

For 2026, the government estimates a need to allocate NOK 6,970 million for the Norway Price. It is important to note that there is great uncertainty about these estimates. The government will return with an updated estimates and proposals in the 2026 national budget. The 2026 estimate assumes that 70 percent of households in Southern Norway will choose the Norway Price.

Households using district heating currently have price protection equivalent to the electricity support scheme, but without state funding. The government’s proposal entails that the state will cover the cost from the 1^st of October, so that support for district heating customers does not burden the heating companies. From the same date, the Norway Price will also be introduced for district heating customers. Both the Norway Price and the current support scheme will apply to district heating consumption up to 3,500 kWh per month per energy meter.

The government plans to present a legislative proposal for the electricity and district heating schemes before the summer, aiming for parliamentary consideration in mid-June.