About 90% of Norway's 40 GW energy production (mostly hydro) is state owned. By exporting energy and thereby getting other countries to pay, the money literally goes to the norwegian people. Not directly into their bank accounts, but into their govt budgets, which they later pay less in taxes.
Norwegian power generation is sized for the domestic market, so tax income from selling excess is marginal at best. The power bills however have indeed crept quite a way up. This was especially noticeable in the first winter of the Russian invasion, when the Nordics had to subsidize the bill that suddenly dropped on short-sighted German energy policy.
Example, the Netherlands had the biggest gas reserve in forever. It's 2/3rds or 3/4ths empty now and extraction has or is stopping due to it causing earthquakes. But the income from exporting the excess gas has been used for socialist policies. Now that that income is gone, and now that expenses for gas have gone way up (also due to reliance on cheap Russian gas), people are feeling it in their bank accounts directly and the socialist policies are being dismantled one by one.
Do they actually pay less in taxes because of this? I’m not arguing. That is great and I would appreciate if you could provide a source for me to read.
We do not but there's a social consensus about the value people get from this taxation level. However the excess power price which is not a domestic supply/demand outcome is a lot harder to sell.
There are government subsidies for consumers to either have a fixed price or a price cap on electricity in Norway as a political response to the increase. This would be harder to pull off if not most of the profits from export didn’t land in the public sector (either taxes or government owned energy companies).
About 90% of Norway's 40 GW energy production (mostly hydro) is state owned. By exporting energy and thereby getting other countries to pay, the money literally goes to the norwegian people. Not directly into their bank accounts, but into their govt budgets, which they later pay less in taxes.
Norwegian power generation is sized for the domestic market, so tax income from selling excess is marginal at best. The power bills however have indeed crept quite a way up. This was especially noticeable in the first winter of the Russian invasion, when the Nordics had to subsidize the bill that suddenly dropped on short-sighted German energy policy.
Right, but people tend to be oblivious to anything that's not on their bank accounts.
i think that doesn't hold true as much in norway and scandinavia in general.
as varjag said: "there's a social consensus about the value people get from this taxation level"
Until it's taken away, of course.
Example, the Netherlands had the biggest gas reserve in forever. It's 2/3rds or 3/4ths empty now and extraction has or is stopping due to it causing earthquakes. But the income from exporting the excess gas has been used for socialist policies. Now that that income is gone, and now that expenses for gas have gone way up (also due to reliance on cheap Russian gas), people are feeling it in their bank accounts directly and the socialist policies are being dismantled one by one.
Their tax rate is already pretty high. But yes it effectively sponsors their entire energy infrastructure
Do they actually pay less in taxes because of this? I’m not arguing. That is great and I would appreciate if you could provide a source for me to read.
We do not but there's a social consensus about the value people get from this taxation level. However the excess power price which is not a domestic supply/demand outcome is a lot harder to sell.
There are government subsidies for consumers to either have a fixed price or a price cap on electricity in Norway as a political response to the increase. This would be harder to pull off if not most of the profits from export didn’t land in the public sector (either taxes or government owned energy companies).
Norway has experience circumventing the resource curse/Dutch disease with undersea oil. Hopefully they'll manage it this time too.