Norway’s ruling coalition government has split following disagreements over the adoption of EU energy market rules designed to integrate the country more closely with the bloc’s power market.
The eurosceptic Centre Party, led by former finance minister Trygve Slagsvold Vedum (pictured), announced yesterday that it is leaving the government, leaving the Labour Party and Prime Minister Jonas Gahr Støre at the helm of a minority government until the next election, due in September.
The coalition partners had disagreed over implementing EU laws on energy efficiency, power market and renewables, with Vedum calling for Norway to “take back … control” of its energy system “so that low and stable electricity prices once again become a benefit for Norwegian households, and a competitive advantage for Norwegian businesses”.
Although not an EU member, Norway is subject to a raft of EU regulations in return for single market access as part of the wider European Economic Area (EEA).
It is due to adopt regulations that include targets for economy wide energy efficiency improvements and the share of renewables in the energy mix, and that would also broaden the powers of the EU’s regulatory agency, ACER.
In a statement, Vedum said that the electricity market had become “dysfunctional” due to the erosion of national control over energy policy and an increase in electricity exports.
He said: “The goal of the fourth energy market package is for Norwegian hydropower to supply the EU with electricity when it is not windy or sunny … this will result in even higher and even more unstable electricity prices in Norway.”
Vedum also called for Norway to “take control” over export cables to the UK and Germany, and slow down the pace of electrification.
“The Centre Party’s ambition is now to use our power in the Storting to change Norwegian electricity policy before the election,” he added.