The Norwegian competition authority has submitted a response to the Ministry of Energy regarding the proposed new law on Norgespris and electricity subsidies for households. They warn that implementing Norgespris could result in higher electricity consumption among households, increased electricity prices, and reduced incentives to conserve energy or shift consumption to off-peak hours.

According to Marita Mæland Skjæveland, the head of the authority's department for construction, industry, and energy, households that opt for Norgespris will not notice price changes on their bills, which diminishes the benefits of saving energy during high-price periods. This increased consumption could lead to bottlenecks in the electricity grid and greater price disparities between different pricing areas, negatively impacting competition among businesses that rely on electricity as a key input.

The competition authority emphasizes that cash transfers to households would be a more effective redistribution measure than Norgespris. Cash transfers do not disrupt market price signals and do not provide higher support to households with greater consumption, thus maintaining incentives to reduce usage when electricity prices are high.

Skjæveland states that cash transfers yield the same positive effects as Norgespris without the adverse impacts on market competition. The authority also recommends that if the government decides to implement Norgespris, the consumption cap should be set as low as possible to minimize negative effects and reduce government expenses related to the electricity subsidy scheme.