The right of reversion – The Government secures public ownership of hydropower

- The right of reversion is a major and crucial issue for the Government and for Norway. Through the decision today the right of reversion is maintained, and our energy resources remain in public possession. In this way we follow up the Soria Moria Declaration on an important matter, says the Minister of Petroleum and Energy Odd Roger Enoksen.

- Today, a provisional decree has been passed in the King’s Council with instant effect which is considered to bring the right of reversion in accordance with the ruling of the EFTA Court and the EEA agreement. It is stated that the basic principle of public ownership of the Norwegian hydropower resources at state, regional and local level is being maintained. It will no longer be given licenses for acquisition of waterfalls and hydropower plants to private actors. Such actors can, however, still own one third of public owned hydropower plants, Mr. Enoksen says.

 At the end of June the EFTA Court ruled the Norwegian practice of the right of reversion in conflict with the EEA agreement. Through the decision of today Norwegian law is considered compatible with the EEA agreement. The main objective of the provisional decree is that the country’s hydropower resources shall belong to the public and be administered to the common best. The provisional decree of public ownership states that licences of acquisition to waterfalls and hydropower plants to private actors will no longer be granted. However, it will be possible to sell one third of public owned hydropower companies to none-public owners.

- With this decree the Government secures stability and predictability, and avoids speculation in the electric power sector. By accepting the provisional decree the Government gives the Parliament (Storting) sufficient time for necessary treatment of a permanent law. The involved ministries will now carry out thorough assessments of the consequences of the decree, and a hearing will be carried out to secure a substantial treatment before the final law decision can be passed, Enoksen says.

- I am very pleased that we have reached an arrangement which completely keeps our most important renewable resource on public hands. We maintain public ownership at state, county and municipal level and thus secure all public hydropower owners rights to the hydropower without time limits, Minister Odd Roger Enoksen states.