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 Volume 6, issue #9 - 08-05-2001

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Norway could face energy rationing

05-04-01 Norway could be facing the gloomy prospect of electricity rationing if it doesn't start raining good and soon! There's not enough water in the reservoirs to generate hydroelectric power. Norway relies heavily on home-produced hydroelectricity. This time last year the country's reservoirs were ready to overflow, but it's a different picture this year.

There's so little water that Norway has to import enormous amounts of electricity, much of it from Germany. And because demand is so high, so are prices. Norwegian families could be facing an increase of around NOK 3,000 in this year's electricity bills. The government is not ruling out rationing if the dry patch continues, meaning power-driven businesses may have to cease production or domestic consumers forced to switch off.
"If we have as little rainfall this year as we did in 1996, Norway will not be able to buy enough electricity from abroad to meet demand at home," Oil and Energy Minister Olav Akselsen told.
He warned that Norway couldbe facing a period of soaring electricity prices made worse by the risk of rationing. The situation is so serious that he will inform Parliament about it on Friday. Akselen says the situation demonstrates that Norway needs to be less dependent on rainfall and ought to have one or two gas-powered electricity stations.

Source: Aftenposten A/S



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