Krafttak urges Norwegian government to compensate district heating sector

The Krafttak cooperation, a group including Fellesforbundet, Forbundet Styrke, EL og IT Forbundet, Norsk Industri, and Fornybar Norge, is calling on the Norwegian government to establish a compensation scheme for district heating companies.

This request follows a reduction in electricity tax that has resulted in an annual revenue loss of approximately 600 million NOK for the sector. The tax cut has lowered the statutory price cap for district heating, creating financial uncertainty.

Frode Alfheim, leader of Forbundet Styrke, stated that the current framework threatens investments in energy infrastructure essential for job creation and value generation. A report by Oslo Economics and SINTEF warns that these changes could lead to reduced investment willingness and the abandonment of economically profitable projects.

District heating currently provides approximately 7.5 TWh of heat annually, which helps free up electricity that would otherwise be used for heating, thereby supporting industrial electrification and development.