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Storting committee urges student compensation for electricity rent hikes

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Storting committee urges student compensation for electricity rent hikes
Key Points
  • Storting committee recommends government action to compensate students for electricity-driven rent increases
  • Regulatory decision excludes student housing from electricity subsidies, triggering financial pressure
  • Financial impact on student housing associations and students

The Storting's energy and environment committee has issued a recommendation asking the government to find solutions so that students are compensated when rent increases due to electricity prices, according to the committee. The government is tasked with investigating how students renting from student housing associations or foundations can receive compensation for increased electricity and district heating costs before the revised national budget for this year, as stated in the recommendation. The budget parties in the Storting agree to find a solution so that students in student housing can also benefit from the 'norgespris' scheme for electricity, according to parliamentary sources.

The Regulatory Authority for Energy (RME) has determined that student housing associations are not entitled to electricity subsidies or the 'norgespris' as a housing company, the authority said. Students renting from student housing associations or foundations have fallen outside the electricity subsidy schemes because the associations have not been considered ordinary households, according to regulatory decisions. This has led to students having to pay full market price for electricity, while the rest of the population has received subsidized electricity prices, student organizations report.

Student housing associations have only received support for up to 5,000 kilowatt-hours since November 1, according to association data. 7 million kroner through the first two months of the year, association figures show. The student housing association received the 'norgespris' (Norway price) for its entire consumption in October last year, but that changed from November onwards, according to association records.

Studentsamskipnaden i Oslo and Akershus (SIO) is increasing rent as a result of the electricity subsidy disappearing from December 1 last year, the organization said. In Oslo, this has already led to increased rent for many, according to student reports. All parties except KrF have a place in the energy and environment committee and are in agreement that something must be done, committee members stated.

If the recommendation is adopted, the government must return to the Storting with solutions for how this can be arranged, according to parliamentary procedures. The goal is that a solution should be ready before the revised national budget this year, committee documents indicate. RME is considering whether the student housing associations must repay 95 million kroner in incorrectly paid electricity subsidies, the authority confirmed.

The Norwegian Student Organisation (NSO) is happy about the agreement and now expects the government to follow up on the decision quickly, the organization said. 7 billion for people with the 'norgespris', according to energy statistics. January this year was the coldest January month since 2010, meteorological data shows.

Specific unknowns remain about what solution the government will propose to compensate students for increased electricity costs and whether the compensation will be retroactive to November 1 last year, as requested by some student representatives. It is also unclear when exactly the new compensation scheme for students will be implemented and take effect, and how the government plans to fund the compensation for student electricity costs.

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NRK RogalandAdresseavisen
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Storting committee urges student compensation for electricity rent hikes | Reed News