Norway’s fixed electricity rate under the Norgespris scheme could rise from NOK 0.40 (€0.037) to NOK 0.45 (€0.042) per kilowatt-hour before VAT in 2027, under a government proposal announced on Tuesday. The 12.5% increase is expected to be included in the 2027 state budget presented on 7 October and has not yet been approved.
Prime Minister Jonas Gahr Støre, of the Labour Party (Arbeiderpartiet), confirmed the new level a day before the budget presentation. The government plans to allocate NOK 16.4 billion (about €1.52 billion) to Norgespris and Norway’s other electricity support schemes next year, according to figures given to VG.
How Norway’s fixed electricity scheme works
Norgespris was introduced in October 2025 to give households greater predictability at a time of large differences and fluctuations in Norwegian electricity prices. It is a voluntary, state-financed scheme rather than a conventional fixed-price contract with an electricity supplier, as explained by the Norwegian government.
Under the scheme, households effectively pay the Norgespris reference rate for the electricity itself. When the market spot price is above that level, the state covers the difference. When it is below Norgespris, the customer pays the difference back through the settlement mechanism. Grid charges, taxes and any additional charges from the electricity supplier remain separate.
The current rate of NOK 0.40 (€0.037) per kWh applies until 31 December 2026. Households that want to remain under Norgespris in 2027 will have to actively sign up again once the new state budget has been adopted. The Norwegian Parliament (Stortinget) has previously approved the scheme through the end of 2029, with the reference price adjusted annually from 2027.
Why the government wants a higher Norgespris in 2027
Energy Minister Terje Aasland, also from the Labour Party, said the increase reflects electricity market prices that have turned out higher than the government expected when the current NOK 0.40 rate was established.
According to Aasland, relying more heavily on current forward electricity prices would have produced a Norgespris above NOK 0.50 (€0.046) per kWh. The government instead chose NOK 0.45 in an effort to keep the rate relatively stable from one year to the next.
For an example household in South-West Norway, where electricity prices have been among the highest in the country, the government estimates that the proposed rate would still provide around NOK 8,700 (€808) in support during 2027, assuming annual consumption of 16,000 kWh and comparing Norgespris with the projected spot price in the NO2 price area, VG reported.
The scheme has become particularly widespread in that region. By 22 August 2026, nearly 1.8 million Norgespris subscriptions had been registered nationally, while around 77% of households in the NO2 area had chosen it, according to figures published by the government in September.
The increase is already facing opposition
The proposed rise has immediately become part of the political debate around the 2027 budget. The Centre Party (Senterpartiet), Socialist Left Party (Sosialistisk Venstreparti) and Red Party (Rødt) said on Tuesday that they oppose increasing the rate. Leaders of the Norwegian Confederation of Trade Unions (Landsorganisasjonen i Norge, LO) have also criticised the proposal, according to Aftenposten and NTB.
The government will formally present its 2027 budget proposal on 7 October. Until the budget process is completed, NOK 0.45 remains the government’s proposed Norgespris for 2027 rather than an approved rate.
