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Union leaders believe pressured industrial companies should accept the government dividend bill at Statnett. Tina Bru believes that the dividends will not affect the electricity bill.
– If Statnett increases the income of the network by a penny, it doesn’t mean much to me as a consumer. But for industry, a penny equals around an additional NOK 400 million in network rental per year. It’s dramatic when you look at how much energy is being processed, for example, in aluminum companies, which have struggled in recent years, says Frode Alfheim.
Industri Energi-topp was mildly surprised when it read that the government proposed a Statnett dividend of NOK 908 million in 2021.
He believes that the dividend will lead Statnett to increase the income from the grid, which will contribute to weakening the competitiveness of Norwegian industrial companies, which account for a third of electricity consumption in Norway.
– It’s these who get the bill when Statnett has to raise rates as a result of the state receiving dividends, Alfheim says.
He is supported by union steward Arve Baade, who works at Hydro’s aluminum plant in Sunndal.
– Every ear counts as we do now. An increase in network rent would have greatly affected our bottom line, and a government dividend from Statnett is now insane, says Arve Baade, continuing:
– We need to maintain our plant and our machines. The market situation is tough enough, and a government dividend from Statnett won’t exactly help us.
LOWER DEMAND: The corona pandemic has resulted in lower demand and lower production at Hydro Sunndal.
Photo: Hydro
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Dividends have increased dramatically in recent years.
Union leader Alfheim points out that the industry is already struggling with small margins and that a higher electricity bill may topple companies that are barely floating today.
– We have to do something to prevent the industry from shutting down, and then it’s disappointing to see the government nearly triple the dividend compared to the 2018 level. Statnett should keep this money, says Alfheim.
WARNING: Industri Energi’s Frode Alfheim believes that the consequence of Statnett’s NOK 908 million government dividend is that the income from the network will increase so that the company can operate the network and secure investments for years to come.
Photo: Fredrik Varfjell (NTB)
The proposed dividend of NOK 908 million is somewhat lower than this year’s dividend of NOK 1.1 million, but much higher than the dividend levels of 2018 and 2019, which were NOK 326 million and NOK 484 million, respectively.
Statnett to investments worth between four and six billion crowns each year in the future, as much of the network is old and several facilities are reaching the end of their expected useful life. Therefore, the dividend should be canceled, according to union leader Alfheim.
– We believe that the Storting should refrain from extracting dividends from Statnett to ensure the competitiveness of the industry and facilitate a fair network policy, says Alfheim.
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Bru believes that the dividend does not affect the income of the network
The online newspaper Økonomi has been in contact with Statnett, who does not want to answer whether the dividend proposed by the government will have consequences for the rent of the network in the future. Statnett points out that the owner, the Ministry of Oil and Energy, must answer whether it will increase the rent from the network.
The Minister of Oil and Energy, Tina Bru (H), writes in an email to Nettavisen Økonomi that extensive regulation of the companies in the network, including Statnett, ensures that revenues over time cover operating costs and network depreciation.
– The amount of dividends that the owners obtain from the network companies does not matter for the income limit of the network company and therefore not for the network rental. What is decisive for the income level of the network is how much the company invests and how much money it spends on operation and maintenance, and how efficiently the company performs these tasks, writes Bru.
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The Minister of Oil and Energy, Tina Bru (H), mentions the reduction of the electricity tax, CO2 offsetting and investment in research and development that help to boost Norwegian industry.
Photo: Magnus Ekeli Mullis
Recall that Statnett also wants to reduce its share of network rent by nearly a quarter next year as an emergency measure to help businesses and households in light of the pandemic. The Minister of Oil and Energy also does not agree that the competitive situation of the industry is affected by the current situation of the energy industry.
– Today we have a surplus of renewable and emission-free energy, and a surplus is expected for many years. We have several instruments that will help Norwegian industry maintain its competitive advantage, says Bru.
However, union leader Frode Alfheim at Industri Energi says he is not reassured by Bru’s response:
– Regardless of the level of return, any crown drawn from a network company will reduce capital over the next year. It has been repeatedly said that Statnett’s added revenue from, among other things, international connections lowers network rents. It doesn’t matter if the revenue from the bottleneck is higher or lower than expected, says Alfheim and continues:
– All proceeds will benefit consumers. This has been repeated by the government and the Storting many times in dealing with foreign cables and new EU directives.
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