Electrical power tax
A tax is levied on all electric power supplied in Norway, including power supplied free of charge and power distribution companies or generators use for internal purposes.
About the excise duty
The excise duty includes, among other things, power supplied to households and businesses. It also includes power supplied free of charge and power that the transmission system operator or producer withdraws for their own use.
Rates for 2024
| Standard rate | |
| January – March («Winterrate») | 9.51 øre per kWh |
| April – December | 16.44 øre per kWh |
| Reduced rate | |
| The entire year | 0.58 øre per kWh |
Exemption or reduced rate
In some cases, the end user has the right to an exemption from the excise duty or a reduced rate.
New exemption: From 1 October 2023, there is an exemption for power from renewable energy sources used within the same property.
See who can receive the exemption or a reduced rate and what is required:
The reduced rate includes industrial and mining companies, material recycling companies, as well as labour market companies and companies with permanently adapted work within industrial production.
The following must be documented
For the transmission system operator to supply power at a reduced rate or exempt from excise duty, they must obtain documentation from the end user each year. This can be done by requesting the end user to answer the following:
The user must be registered with the following industry codes:
- industry codes 05 to 33, or
- industry subgroup 38.320 (material recycling), or
- industry subgroup 88.993 and 88.994 (Labour market companies and permanently adapted work), provided that the company carries out activity which, by its nature, falls under the industry codes 05-33)
This must be confirmed by supporting documentation showing that the transmission system operator has checked the industry code at the Brønnøysund Register Centre. This can be automated. It can also be confirmed with a printout from the Central Coordinating Register for Legal Entities.
If the industry code is 88.993 (Labour market company), documentation must be provided confirming that the company carries out activity which, by its nature, falls under the industry codes 5-33.
Is stated in percent.
Must be calculated at the full rate, unless the end user documents an independent right to a reduction in excise duty.
Stated in percent.
Must be calculated at the full rate.
To distribute the consumption, the end user must consider what proportion of the power should have an exemption, a reduced rate or ordinary rate.
An «administration building» is a building where 80 percent or more of the building’s total area is used for administration. Each building must be assessed individually, and consumption must have either a reduced or ordinary rate. Power consumption must not be proportionally distributed within an administration building.
See more about administration buildings and examples of consumption distribution
You can find details about what is defined as industry and mining in section 3-12-4 of the Excise Duty Regulations. You can find industry codes for businesses at brreg.no.
There is a reduced rate for power used in the production of district heating.
The district heating producer must supply district heating to consumers outside its own enterprise. The reduced rate does not apply to power for the production of district cooling.
The following must be documented
For the transmission system operator to supply power at a reduced rate or exempt from excise duty, they must obtain documentation from the end user each year. This can be done by requesting the end user to answer the following:
The enterprise must be registered with the industry code 35.300, or have a license granted by the Norwegian Water Resources and Energy Directorate (NVE).
This must be confirmed by supporting documentation showing that the transmission system operator has checked the industry code at brreg.no. It can also be confirmed with a printout from the Central Coordinating Register for Legal Entities.
If the user’s industry code is not 35.300, documentation of the license from NVE is required.
Provide documentation showing that at least 50 percent of at least one the following energy sources is used:
- refuse
- bioenergy
- waste heat
- heating pumps
This can be documented with a copy of the support granted to the district heating plant or other similar documentation.
Installations under construction
If the district heating plant does not meet the requirement for approved energy sources because it is under construction, you must provide documentation for this by enclosing, for example, a statement from the Norwegian Water Resources and Energy Directorate (NVE) or Enova SF.
You should not issue invoices with reduced rates before district heating has in fact been delivered to the customer. The exemption from the requirement for energy sources due to construction applies for three years. The period of three years is calculated from the first delivery.
Stated in percent.
Must be calculated at the full rate.
To distribute the consumption, the end user must consider what proportion of the power should have an exemption, a reduced rate or ordinary rate.
An «administration building» is a building where 80 percent or more of the building’s total area is used for administration. Each building must be assessed individually, and consumption must have either a reduced or ordinary rate. Power consumption must not be proportionally distributed within an administration building.
See more about administration buildings and examples of consumption distribution
You can find details about the regulations for district heating in section 3-12-5 of the Excise Duty Regulations. You can find industry codes for businesses at brreg.no.
There's a reduced rate for power delivered to commercial vessels.
This also includes:
- drilling ships and drilling rigs with propulsion machinery
- charging, for example, of electric ferries
The following must be documented
For a transmission system operator to deliver power at a reduced tax rate, they must obtain documentation from a power plant on shore. This can be done by requesting the onshore power plant to answer the following:
Provide the total amount of power in kWh delivered to commercial vessels.
Ships in storage, ships permanently removed from service, ships used as housing, hotels, offices, workshops or storage facilities, ships under repair or reconstruction, or ships that are in dock, etc., are not considered commercial vessels.
The onshore power plant must obtain and maintain the following documentation from the commercial vessels it delivers power to:
Name of ship
Vessel identification number
The declaration must include the answer: yes or no.
Drilling ships and drilling rigs are also considered vessels in this connection.
Ships in storage, ships permanently removed from service, ships used as housing, hotels, offices, workshops or storage facilities, ships under repair or reconstruction, or ships that are in dock, etc., are not considered commercial vessels.
The declaration must include the answer: yes or no.
Shipping companies can provide general declarations valid for 1 year.
Authorised representative for the vessel or shipping company.
You can find details about commercial vessels in section 3-12-7 of the Excise Duty Regulations.
There are reduced rates for the production of power or the conversion of energy products.
Definition of energy product
By energy product, we mean commodities that fall under certain specific levels in the Norwegian Customs Tariff.
- a. 15.07–15.18, when intended for use as heating fuel or motor fuel,
- b. 27.01–27.15,
- c. 29.01 and 29.02,
- d. 29.05. 11 00, not of synthetic origin, when intended for use as heating fuel or motor fuel,
- e. 34.03,
- f. 38.11,
- g 38.17,
- h 38.26.0000 when intended for use as heating fuel or motor fuel
The following must be documented
For the transmission system operator to supply power at a reduced rate or exempt from excise duty, they must obtain documentation from the end user each year. This can be done by requesting the end user to answer the following:
Amount of power delivered at a reduced rate for the production or conversion of energy products.
Must be stated in kWh.
You can find details about energy products in section 3-12-8 of the Excise Duty Regulations.
There's a reduced rate on power for all commercial activities in the target zone.
The target zone applies to Troms and Finnmark counties, with the exception of the municipalities of Balsfjord, Bardu, Dyrøy, Gratangen, Harstad, Ibestad, Kvæfjord, Lavangen, Målselv, Salangen, Senja, Sørreisa, Tjeldsund and Tromsø.
Other deliveries in the target zone are exempt from duties on electric power.
There are exemptions for power supplied for use in chemical reduction or electrolysis, metallurgical processes and mineralogical processes.
Metallurgical processes consist of the mining and processing of metal.
Mineralogical processes fall under industry code 23 in Statistics Norway’s standard of industrial classification. However, it is not a condition that the enterprise is registered with industry code 23 to be entitled to the exemption. It will be sufficient for the enterprise to operate processes that fall under industry group 23. Examples of mineralogical processes are the production of cement, concrete, lime, glass, mineral wool, ceramics, expanding clay and bricks.
As a rule, power is also supplied for supporting processes. Such supporting processes are entitled to a reduced excise duty rate if there is a documented right to do so. See the paragraph above on industry and mining. This means that there can be enterprises that invoice power without excise duty, with a reduced rate, and with the ordinary rate for deliveries to administration buildings.
The following must be documented
For the transmission system operator to supply power at a reduced rate or exempt from excise duty, they must obtain documentation from the end user each year. This can be done by requesting the end user to answer the following:
The enterprise must be registered with industry codes found in chapters 5 to 33. This is a requirement for entitlement to a reduced rate.
Note which processes the power is delivered to:
- chemical reduction
- electrolysis
- metallurgical processes
- mineralogical processes
Only electric power used directly in these processes is covered by the exemption.
State the percentage.
The stated share will be exempt from excise duty. Other uses for other purposes must be invoiced at a low excise duty rate for industry unless it concerns administration buildings. The distribution must be proven.
The stated share must have a reduced rate for industrial businesses.
Stated in percent.
Must be calculated at the full rate.
To distribute the consumption, the end user must consider what proportion of the power should have an exemption, a reduced rate or ordinary rate.
An «administration building» is a building where 80 percent or more of the building’s total area is used for administration. Each building must be assessed individually, and consumption must have either a reduced or ordinary rate. Power consumption must not be proportionally distributed within an administration building.
See more about administration buildings and examples of consumption distribution
You can find more details about the regulations in section 3-12-14 of the Excise Duty Regulations.
There's an exemption for power for use in enterprises that have greenhouses with electric heating systems. The exemption does not apply to electric power supplied to administration buildings.
The following must be documented
For the transmission system operator to supply power at a reduced rate or exempt from excise duty, they must obtain documentation from the end user each year. This can be done by requesting the end user to answer the following:
The commercial greenhouse industry refers to the production of plants in a greenhouse for commercial purposes.
Stated in percent.
Must be calculated at the full rate.
To distribute the consumption, the end user must consider what proportion of the power should have an exemption, a reduced rate or ordinary rate.
An «administration building» is a building where 80 percent or more of the building’s total area is used for administration. Each building must be assessed individually, and consumption must have either a reduced or ordinary rate. Power consumption must not be proportionally distributed within an administration building.
See more about administration buildings and examples of consumption distribution
You can find more details about the regulations in section 3-12-14 of the Excise Duty Regulations.
The exemption applies to power delivered for use in the propulsion, heating and lighting of trains or other rail transport, including trolley busses.
The following must be documented
For the transmission system operator to supply power at a reduced rate or exempt from excise duty, they must obtain documentation from the end user each year. This can be done by requesting the end user to answer the following:
Confirmation that the electric power at this measuring point is used for propulsion, heating or lighting in trains, rail transport or trolley busses.
State the share of consumption that is to be exempt.
Must be stated in percent.
The exemption only applies to electric power used for propulsion, heating and lighting in rail transport or trolley busses.
If power is supplied for one subscription for purposes that fall partially within and partially outside the excise tax exemption, the power consumption must be distributed. The distribution must be proven.
You can find more details about rail transport in section 3-12-16 of the Excise Duty Regulations.
There's an exemption for power used in direct connection with the production of electric power.
The exemption only applies to power for measures that have a direct technical connection to production, or that are technically necessary to maintain production.
Power for the following purposes is exempt from excise tax:
- for the operation of magnetising machines for those generators that have separate magnetisation
- for pumping of water to higher-lying reservoirs
- for covering transformer and transmission loss
- for necessary lighting and heating of power converter and transformer substations with a functional connection to the production itself, but not to substations in the distribution grid
- for lighting and heating in machine rooms, control rooms, workshops, switchgear, hatch houses, hatches and gates, auxiliary systems for cooling, ventilation, metering and humidification
- for turbine constructions – including turning of turbine blades and turbine hub (pitch and yaw), rest rotation, heating of gear oil, necessary lighting, cooling, heating, ventilation, dehumidification, communication, de-icing and anti-icing
The following must be documented
For the transmission system operator to supply power at a reduced rate or exempt from excise duty, they must obtain documentation from the end user each year. This can be done by requesting the end user to answer the following:
Confirmation that the electric power at this measuring point is used in direct connection with the production of power.
State the share of consumption that is to be exempt. This must be stated in percent.
If power is supplied for purposes that fall partially within and partially outside the excise duties exemption, the power consumption must be distributed. The distribution must be proven.
You can find more details about the production of electric power in the annual circulars (in English only).
The exemption applies to power produced in solar panels that are directly used by the producer itself.
«Directly used» means power produced in one’s own installation and where the power consumed goes directly via an internal grid from the installation to the consumer’s buildings.
Producers that supply power to the ordinary grid and then receive power back via the transmission system operator, will not be covered by the exemption. This is not considered direct supply.
There's an exemption for power from renewable energy sources used within the same property. The exemption will typically involve larger properties where several users receive power from a production installation on the property, for example, in a housing association.
The use must occur on the same property as the production. The same property means the same municipality, cadastral unit number and property unit number, and any leasehold number. The exemption applies up to and including 1 MW (AC) per property. The power can be supplied to the ordinary grid and distributed with a corresponding amount to the users on the property (virtual distribution).
The exemption is in addition to the exemption for solar panel power from one’s own installation. The first exemption applies where the power is distributed via the power grid, while the second exemption applies where the power is used up by the producer within the internal grid.
The following must be documented
The producer must report to their transmission system operator:
Which connection points (production measuring points) are covered by an exemption
Maximum 1 MW installed capacity (AC). Installed capacity of the installations connected to the connection points covered by the exemption cannot exceed the threshold limit, either alone or together.
If a producer has several installations, the installations that together are below 1 MW installed capacity (AC) are covered by the exemption.
The notification must state which subscribers (measuring point ID’s) the power should be distributed to and the distribution key for these.
The use must occur on the same property as the production. The same property means the same municipality, cadastral unit number and property unit number, and any leasehold number.
Example
One property has 5 production installations with solar panels, each connected to its own connection point. Each installation has an installed capacity of 300 KW.
The producer can then report three of the connection points and receive an exemption for 900 KW. The power from the last two installations and the connection points will be subject to excise tax in the usual way when it goes out to the power grid.
There's an exemption for power supplied directly to end users that's produced at a waste-to-energy plant.
For the transmission system operator to supply power exempt from excise duties, they must obtain documentation from the end user each year.
Confirmation that the plant is approved as a waste-to-energy plant by the Norwegian Environment Agency or the Norwegian Water Resources and Energy Directorate (NVE).
Agreement of supply of electric power produced in a waste-to-energy plant between producer and end user.
Annual reconciliation of waste-to-energy plant’s production and supply.
If the amount of power supplied during the calendar year exceeds the actual amount of power produced in the waste-to-energy plant, the excess must be stated with excise tax in the tax return for the last quarter of the relevant calendar year. The excise tax rate per 31 December applies.
You can find more details in section 3-12-12 of the Excise Duty Regulations.
There's an exemption for power produced in an aggregate generator with a capacity less than 100 kVA that's taken out for own use and supplied directly to the end user.
The micro power plant owner must prepare an invoice for the relevant quantity and must either direct the power to the end user in their own grid or rent a grid from others. It is only the quantity that is actually produced in the micro power plant that can be supplied without excise duty.
For the transmission system operator to supply power exempt from excise duties, they must obtain documentation from the end user each year.
Confirmation that the power is produced in an aggregate generator with a capacity less than 100 kVA («micro power plant»).
Each generator is assessed separately. It is irrelevant if the total capacity for several generators together exceeds 100 kVA.
Agreement of supply of electric power produced in a micro power plant directly to the end user.
The producer must be able to document to the transmission system operator which power quantities that have been produced in their own micro power plant and purchased/received from others.
You can find more details about micro power plants in section 3-12-12 of the Excise Duty Regulations.
There's an exemption for power produced in emergency power aggregators when the normal electricity supply has failed.
There's an exemption for power produced in a counter pressure system.
The exemption covers households and public administration in the target zone.
The target zone applies to Troms and Finnmark counties, with the exception of the municipalities of Balsfjord, Bardu, Dyrøy, Gratangen, Harstad, Ibestad, Kvæfjord, Lavangen, Målselv, Salangen, Senja, Sørreisa, Tjeldsund and Tromsø.
The term household includes, among other things, single dwellings, apartments and holiday homes, including cottages, summer cabins and similar. Consumption in outbuildings, outdoor areas, garages, shared laundries and other common services and installations related to such households is also exempt from excise duties. The term household must also include retirement homes, orphanages, daycare institutions for children, as well as common installations in/for such buildings.
Supplies in the target zone not covered by the exemption have a reduced rate.
Through a series of treaties, agreements and protocols, Norway has undertaken to exempt NATO forces, etc. from excise duties. The exemption applies to goods for use by foreign NATO forces and forces that are with the Partnership for Peace programme, NATO’s headquarters in Norway and persons associated with NATO.
It also applies to foreign forces that are not members of NATO or not with the Partnership for Peace programme, but that participate in exercises, etc. that are approved by the Norwegian military authority and that is or will be subject to NATO command.
There’s an exemption from excise duties on goods for use by international organisations. The exemption only applies to organisations mentioned in the Storting resolution. The Nordic Investment Bank is granted an exemption from excise duties on electric power.
Documentation and self-declaration
The transmission system operator must obtain documentation and a self-declaration of the right to a reduction in excise duty from the end user. The documentation must be no older than 12 months.
The documentation required varies depending on the type of exemption or reduction in question. You can find details of each case further up the page.
If the end user does not submit documentation each year, the transmission system operator must invoice using the ordinary rate. The end user must also notify the transmission system operator if they no longer meet the criteria for a reduction in excise duty.
How exemptions and excise duty reductions should be documented depends on the tools the transmission system operator uses. Forms are often used. The forms can be digital, for example, integrated in the customer interface on the transmission system operator’s website. The transmission system operators can also use digital solutions such as automated collections and checks of industry codes from the Central Coordinating Register for Legal Entities.
If the transmission system operators make use of digital solutions, the solutions must ensure that registrations are traceable and verifiable. Information that the customer provides must be easily linked to the customer, issued invoices and power supplies in a secure and appropriate manner.
Distributing consumption
Businesses entitled to a reduced rate or excise duty exemption must distribute consumption between the different rates. If there's a full entitlement to an exemption/reduced rate, the distribution must be stated as 100 percent. The distribution must be stated in a self-declaration and sent to the transmission system operator.
To distribute consumption, the end user must consider what proportion of the power should have an exemption, a reduced rate or ordinary rate.
State the distribution in a percentage rate or fraction. If all consumption is to have an exemption or a reduced rate, state 100 percent.
Important information
- power for administration buildings must use the ordinary rate
- power for private households must use the ordinary rate (target zone has an exemption)
- power for chemical reduction, electrolysis, metallurgical and mineralogical processes must use an exemption
- if there are several types of business activities with several excise rates on the same meter, the power consumption must be distributed
- if one enterprise has sub-entities that do not have industry codes that give an entitlement to a reduced rate, these must use the ordinary rate
Even if the end user has an entitlement to a reduced rate and/or exemption, power must be supplied to administration buildings at the ordinary rate.
Administration buildings
An «administration building» is a building where 80 percent or more of the building’s total area is used for administration.
The term «administration» means activities that are covered by a natural understanding of the term administration. This includes, for example, management, accounting, finance and property management, asset management, information departments, personnel departments, IT departments, marketing, sales and reception, but also, among other things, district heating and newspaper production without their own printer house.
If the company has several buildings
Each building must be assessed individually.
If the company shares buildings with others
The end user only assesses the areas at the company’s disposal.
Here we provide you with a few examples you can use when you’re assessing how to distribute consumption:
Example 1
An industrial business with the right to a reduced rate for electricity tax is located in one building and has one meter. They have the following area distribution:
- 60 percent of the area in the building is used for manufacturing processes
- 40 percent of the area is used for administration
Assessing the area: The administration area does not exceed 80 percent, and the building is therefore not considered an administration building.
Distributing power consumption: All power to the building must be invoiced at a reduced rate.
The following distribution of power consumption must be submitted to the transmission system operator:
Power that must have a reduced rate: 100 percent
Example 2
A metallurgical industrial business with the right to a reduced rate for electricity tax is located in one building and has one meter. They have the following area distribution:
- 40 percent of the area is used for manufacturing processes
- 60 percent of the area is used for administration
The company calculates that 95 percent of the power at the measuring point is used for electrolysis in the manufacturing of aluminium.
Assessing the area: The administration area does not exceed 80 percent. The building is therefore not considered an administration building.
Distributing power consumption: In principle, all power to the building must be invoiced at a reduced rate. In this case, however, the power used for electrolysis must be granted an exemption, while all other power must have a reduced rate.
The following distribution of power consumption must be submitted to the transmission system operator:
Power used for electrolysis: 95 percent
Power that must have a reduced rate: 5 percent
Example 3
A metallurgical industrial business has the right to a reduced rate on electricity tax and has 3 buildings and one meter. They have the following area distribution:
- Building 1:
- 20 percent of the area is used for administration
- 80 percent of the area is used for metallurgical processes
- Building 2:
- 40 percent of the area is used for other industrial processes
- 60 percent of the area is used for administration
- Building 3:
- 90 percent of the area is used for administration
- 10 percent of the area is used for other industrial processes
The company has calculated that 90 percent of the power is used in metallurgical processes. Building 3 uses 5 percent of the power.
Assessing the area: Each building must be assessed individually. Buildings 1 and 2 are not considered administration buildings (equal to or exceeding 80 percent of the area used for administration), Building 3 is considered an administration building that has the ordinary rate because 90 percent of its area is used for administration.
Distributing power consumption: Power used for metallurgical processes and electrolysis gives the right to an exemption, but the rest of Building 1 must be invoiced at a reduced rate. Power to Building 2 must have a reduced rate.
Since Building 3 is considered an administration building, power to this building must be invoiced with the ordinary rate.
The following distribution of power consumption must be submitted to the transmission system operator:
Power used for electrolysis: 90 percent
Power that must have a reduced rate: 5 percent
Power that must have the ordinary rate: 5 percent
Example 4
A greenhouse business has one building with one meter, and has the following area distribution:
- 20 percent of the area is used for greenhouse activity
- 80 percent of the area is used for «administration», such as store, office, etc.
Assessing the area: The building is considered an administration building because 80 percent or more of the area is used for «administration».
Distributing power consumption: The total consumption for the building must be invoiced with the ordinary rate.
The following distribution of power consumption must be submitted to the transmission system operator:
Power that must have the ordinary rate: 100 percent
For transmission system operators: Registering, reporting and paying
Generally, the transmission system operators must report and pay excise duties to the Tax Administration. The transmission system operators must be registered as liable to pay excise duties.
The transmission system operators report the electricity tax via the excise tax return. This is reported every quarter.
Excise duty on electric power supplies at a reduced rate or without excise duty must be reported with excise duty type EL, and the correct excise duty group with any additional codes. You can find an overview of the codes in the code guide (in Norwegian only).
Submitting the excise tax return
The Tax Administration recommends that the transmission system operators establish a link in internal systems to the reporting code used for reporting. This can be done by adding this code in the customer systems when the customer registers and claims a reduction in excise tax.
Any enterprise transporting electric power to consumers or producing electric power must register as liable to pay excise duty.
Waste-to-energy plants that supply electric power directly to the end-user, and micro power plants do not have to register their enterprises.
The excise obligation arises upon the supply of electrical power to a user and upon withdrawal by the producer for their own internal use.
Read more about whether you must register your enterprise, how to do this and the information you must supply or document:
Register your enterprise as liable for excise duties
Let us know the difficulties you experience
On our website, we try to provide guidance to everyone who must report excise duties. Let us know about any difficulties that you encounter, so we can keep improving our guidance.
Legal sources
The Tax Administration issues annual circulars on excise duties. The circulars and other legal sources are meant for professional parties that need more comprehensive legal information: