Electricity prices reach new record (Aftenposten)

The spot price of electricity on the Nord Pool electricity exchange is always one day ahead of the 24-hour period it applies to. At the end of yesterday’s trading the price for a kWh of electricity today stood at 83.14 øre. This is the highest price ever recorded by Nord Pool. Last Monday, the corresponding price was 57.15 øre, which means that the price of electricity has risen by a massive 45 per cent in scarcely a week. Continued cold weather and the resumption of industrial production after the Christmas break could push prices even higher as the week progresses.

Socialist Left Party and Centre Party call for change in Energy Act (Dagsavisen)

The Centre Party and the Socialist Left Party are blaming the market for galloping electricity prices, and have called for a change in the Energy Act. "The Energy Act works well when there is a surplus of power," said Centre Party leader Odd Roger Enoksen. He wants the Government to force the power companies to keep reservoirs at a certain minimum level, even when electricity consumption in Norway is low and it is more profitable to export power. However, Labour’s energy policy spokesperson Sylvia Brustad is extremely reluctant to let politicians regulate the water level in the country’s hydro-electric reservoirs. "It will not solve the problem. If we had had gas-fired power stations today, we would not be in this situation. Labour also wants greater investment in renewable energy sources," she said.

Energy Minister considering a change in the law (NTB)

Petroleum and Energy Minister Einar Steensnæs (Chr.Dem) has announced that ministry officials are currently evaluating changes to the Energy Act following the price hikes which in recent weeks have shocked Norwegian electricity consumers. "The main objective is to ensure that we always have sufficient energy at a reasonable price. This is enormously important for households’ financial situation, and has a major impact on industry as well," he said.

Progress Party calls for convicts to be shipped abroad (Aftenposten)

"We should rent cells in foreign prisons. If Norway had an agreement with the UK, for example, offenders sentenced to long prison terms could serve their time there. It would free up space in Norwegian prisons and in the longer term eradicate the time lag here at home between sentencing and the actual start of an offender’s prison term," said Progress Party MP Jan Arild Elingsen, who is secretary of the Storting’s Justice Committee. Prison officers believe it would be irresponsible to export Norwegian prisoners to foreign jails. "Our view is that criminal acts committed in Norway should be punished in Norway," said Roar Øvrebø, head of the Norwegian Prison and Probation Officers’ Union. Before Christmas it was revealed that 2,500 people in Norway were waiting to serve sentences handed down by the courts.

Union to fight hospital cuts (Verdens Gang)

The planned hospital cuts are a declaration of war on thousands of healthcare workers, according to Jan Davidsen, leader of the Norwegian Union of Municipal Employees. The influential union boss has declared that he will not accept a single redundancy. A number of the country’s hospitals are now being forced to make dramatic cut-backs in services after the regional health authorities announced proposals for budget cuts in the billion kroner class. Indeed, several hospitals are faced with closure. The situation is a result of the Government’s major hospital reform.

Nine-fold increase in heroin seizures (Aftenposten)

The amount of heroin, amphetamines and other narcotic substances seized by customs officers rose substantially in 2002. Last year 35 kg of heroin were seized, compared with just over 4 kg of heroin the year before. Seizures of anabolic steroids doubled. Customs officers believe that the increase in the smuggling of hard drugs has close links with organized crime. "Smugglers have always been tough, but the brutality which we see in today’s market is frightening," said Marit Wiig, head of the Customs Administration.

Norwegian concessions to the EU (Nationen)

According to calculations made by the meat products industry, an increase in the duty-free meat allowance will lead to a rise in meat imports from the EU of 13,000 tonnes, the equivalent of six per cent of Norway’s meat production. Norway is in the middle of tough negotiations with the EU and the WTO. The Ministry of Finance has confirmed that Norway has unilaterally decided to increase the duty-free allowance without this being used as a bargaining chip in support of Norwegian counter-demands.

Minister: People must stop being so choosy (Dagsavisen)

Unemployment is now extremely high among the country’s highest educated. According to Labour and Government Administration Minister Victor Norman, unemployed graduates will have to stop being so choosy about the jobs they will accept. "Many of them will have to take jobs which are a little less attractive than the job they think they can get. We are now beginning to see the effect of years of focusing on higher education. Some of them will have to put up with working a little bit lower down the job scale," he said.

1. Worth Noting

• Yesterday, the radio station P4 was given access to documents relating to Cultural Affairs Minister Valgerd Svarstad Haugland’s decision not to renew its broadcasting licence. P4 had previously claimed that Ms Svarstad Haugland had overruled the recommendation of ministry officials when she awarded the broadcasting licence to Kanal4. However, the documents show that the Minister had her officials’ full support.
  (Aftenposten)
• 160,000 households are already in chronic financial difficulties – and the figure is rising. The rise in electricity prices to new heights will probably mean that even more families default on their financial obligations during the spring.
  (Nationen)
• Both the Labour Party and the Conservatives are considering exempting farmers from electricity tax when the time comes to negotiate the next round of farm subsidies. Members of the Storting’s Business and Industry Committee believe that the agricultural sector will have to be much more united if it is to win favourable electricity price agreements.
  (Nationen)
• The painful rise in electricity prices may not be particularly welcome, but it was certainly expected, according to industry experts, market players and the public electricity administration.
  (Dagens Næringsliv)
• This year’s official catch quotas for king crab have been doubled. Fisheries Minister Svein Ludvigsen (Con) claims that the creatures are now under control. However, a number of marine management experts disagree.
  (Verdens Gang)
• Environment Minister Børge Brende has promised that king crabs will be eradicated if they are shown to damage the marine environment. "This government is the first for over thirty years to initiate measures against the crabs," he said.
  (Dagbladet)
• Last year the number of companies in the restaurant industry which went into liquidation rose by 50 per cent. 246 businesses went to the wall – the highest number since 1993. And industry heavy-weights believe the situation will get worse this year.
  (Dagens Næringsliv)
• On Saturday Vestfold County set a local temperature record at –33.1 ⁰>C. By yesterday the temperature had risen to –10 ⁰>C, but it was still just as cold along the coast. The reason? It was blowing a gale.
  (Verdens Gang)
• The weather forecast this week comes as a welcome relief for all those who are worrying about getting an unusually large electricity bill. Most of Norway can expect to see rising temperatures.
  (Dagsavisen)

2. Today’s comment from Aftenposten

The substantial rise in electricity prices, combined with a long-lasting period of severe cold weather over large parts of the country, has prompted many of our politicians to demand changes in the Energy Act. The criticism is understandable. It is unreasonable that the inhabitants of a country with a cold climate and enormous energy resources should not be able to heat their homes at a price they can afford. And the authorities undoubtedly have a responsibility to ensure that the majority of people are not left shivering, even if the thermometer creeps down below zero and stays there for week after week. But the electricity market is a complicated business which cannot be regulated by simplistic solutions. We take it for granted that Petroleum and Energy Minister Einar Steensnæs had this in mind when he announced an investigation into possible changes to the Energy Act, with the aim of ensuring that we "always have sufficient energy at a reasonable price".

Please note that the weekend papers have not been included in this news round-up