Government secures public ownership to hydro power by law

 

The Ministry of Petroleum and Energy has presented a white paper to Stortinget (Parliament) on law amendments, stating that Norway’s hydro power resources will remain in public possession. These amendments will secure and strengthen the public ownership of waterfalls and hydro power stations at state, regional and local level. Mrs. Åslaug Haga, Minister of Petroleum and Energy, wants to lay down the purpose of public ownership in the Industrial Licensing Act.

The proposals are within the room for alternative measures that stands available to Stortinget as national legislator within the frames of the EEA agreement *.

Hydropower is the main energy source in mainland Norway, from which almost all the electricity production is derived. Hydropower is a renewable energy source without emissions, and it will gain further value in the future. Hydropower is important in securing the energy supply.  Diversified public ownership ensures that there is a large number of competitive hydropower producers in Norway.

The rules for rights of reversion was introduced for more than 100 years ago, and as a result the state, regional og local authorities own about 88 per cent of Norwegian hydro power production.

The Government presents this white paper after an extensive public hearing. It is proposed to establish by law the existing system of altering time limited concessions with right of reversion to concessions without time limitation and right of reversion, if waterfalls and power plants are sold from private to public hydro power producing companies.
The Government will do what is possible for a continued industry development in Norway, but this must be within the frames of international rules and regulations. Acceptable conditions for power intensive industry can be reached in several ways. It can be reached by the sum of different separate elements. This is one such element. Through this establishment of law the Government will contribute to a continued industry development in Norway.

The rule which allows private investors to obtain up to one-third of the shares in a public undertaking in hydro power producing companies will be prolonged.

In spring 2009, the Government will propose new rules for letting out hydropower production. The rules will be subject to a public hearing before it will be presented to Stortinget.