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Why owning an electric car in Norway could become more expensive

Norway’s transport ministry says it is considering scrapping or reducing tax discounts for electric vehicles.

electric cars charging
Norway's government is considering reducing discounts for electric cars. Illustration photo: JUSTIN SULLIVAN / GETTY IMAGES NORTH AMERICA / Getty Images via AFP

Tax and toll deductions for electric cars could soon be scrapped or reduced in Norway’s larger cities as the country’s transport ministry is concerned public transport is losing out to low-emissions vehicles.

Minister of Transport Jon-Ivar Nygård told broadcaster NRK on Tuesday that discounts for electric cars could be withdrawn.

A law previously passed by parliament holds that electric cars should never incur more than 50 percent of the tax applied to petrol and diesel equivalents.

But reduced public transport revenues related to higher electric car use, as well as lower intakes from tolls around Oslo because the rate paid by electric cars is lower, are causing the government to rethink, NRK reports.

The loss in traffic revenues from tolls makes it harder to invest in infrastructure projects, while poorly performing public transport could result in cutbacks, the minister said according to NRK.

“We have seen a trend, especially during the pandemic, that car traffic has returned,” Nygård said to the broadcaster.

“It’s great that people use electric cars. But we are not well served by people get into their cars and drive into busy city areas instead of walking, bicycling or taking public transport,” he also said.

A final decision on the matter is yet to be taken, the minister said.

Norway’s owners’ association for electric cars, Elbilforeningen, said it opposed cutting discounts for green vehicles.

“(The government) is now considering throwing climate politics under the bus. We must remember that over 80 percent of cars in Norway still run on fossil fuels,” the organisation’s general secretary Christina Bu told NRK.

“We know that the toll (discounts) are one of the most important reasons for people choosing electric cars,” she said.

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OSLO

Potential bankruptcy threatens bus services in Oslo 

The strained finances of bus provider Unibuss could cause chaos for Oslo’s bus network if the company folds. 

Potential bankruptcy threatens bus services in Oslo 

Unibuss, which is wholly owned by Oslo Municipality, is in danger of going bust due to large losses, unpaid bills, and fines from public transport firm Ruter for issues with its electric bus fleet this winter. 

Oslo City Council will hold an emergency meeting headed up by transport councilor Marit Vea on Wednesday, where she will be grilled on how the council will avert a collapse in the city’s public transport network should Unibuss go bankrupt. 

Unibuss is comprised of four smaller companies that operate bus routes in Oslo on behalf of Ruter. The company has just over 370 buses in operation and covers around 60 to 70 percent of the routes in Oslo and the neighboring municipality of Bærum. 

Oslo’s fleet of electric busses struggled especially with snow and cold temperatures this winter, which caused frequent chaos across the capital’s public transport network. 

Snow, ice, range and charging issues for the busses lead to vehicle shortages which caused mass delays and cancellations several times over the winter. 

Ruter, which is also part owned by Oslo municipality, believes that the financial problems facing Unibuss mean the company could be forced to file for bankruptcy or undergo a major restructuring, according to a memo obtained by publication Teknisk Ukeblad.  

It has previously told public broadcaster that it was working on a plan in case Unibuss goes bankrupt. 

“There is no doubt that the first days of such a scenario will be very demanding for the residents of Oslo and parts of Akershus,” Ruter’s communications director Elisabeth Skarsbø Moen told public broadcaster NRK.  

“First and foremost, we are working to find a solution together with Unibuss that does not affect Ruter’s customers,” she said. 

“But as those responsible for public transport, we have both a plan and an emergency organization ready to also handle a bankruptcy,” Skarsbø Moen added. 

Should Unibuss go bankrupt, its buses would become part of the bankruptcy estate and if such an event were to occur while passengers were in transit, all passengers would need to disembark at the next stop so the buses can be transported to the depot. 

Ruter said it had an eye on the market to try and see what could be available in terms of extra buses and equipment. 

It said that its priority would be to ensure that school transport, and that healthcare workers could get to work, in the event of a sudden lack of buses. 

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