Norwegian's new policy consistent - also tax increase for heating oil

Dec. 19, 2013

Last week we reported about a 44% tax increase for HFCs in Norway from 2014 onwards. Whereas this affects heat pumps directly in not such a positive way, another aspect in the adopted state budget might be more beneficial for the industry.

That 2014 budget foresees namely a substantial tax increase for heating oil and kerosene. More in particular, for mineral oil it means a tax increase by about 0,06 euro per liter, complemented by a CO2 tax of 0,03 euro per liter. For households, this means a tax increase - incl. VAT - of almost 0,12 euro per liter of heating oil.

As such, from 1 January 2014 onwards, the price per liter heating oil will be about 1,48 euro. The price per kWh for heating with a boiler with an efficiency of 70% will be around 0,21 euro.

In a statement the new Norwegian government writes that they want to strengthen the climate agreement. They see higher taxes on oil, kerosene and natural gas as one of the most effective means of reducing CO2 emissions, says says Bård Baardsen of the Norwegian Heat Pump Association (NOVAP).

More good news comes from Enova, an organisation that was established by the Parliament to speed up the energy transition in the country. From the 13th of May 2013 onwards, Enova's grants to households that switch from oil heating to heat pumps have been increased from 1.190 euro to almost 3.000 euro. This new grant scheme for Enova has been a great success sofar, whereby Enova has already received applications from more than 1.000 households who want to replace their oil heating with a renewable option.

Source: NOVAP