Norway`s parliament approved the adoption of European Union energy rules on Thursday, over the objections of some centre-left parties, allowing the EU outsider to remain a full member of EU markets, the leader of the parliament said on Thursday.
The centre-right minority government feared that rejecting the EU`s Third Energy Package, designed to enhance energy flows and improve regulatory oversight, would put Norway on a slippery slope to a Brexit-like ending of its close EU relations.
For the past 24 years, Norwegian companies have enjoyed market access on equal terms with companies in the EU via the European Economic Area treaty, in return for the country`s adoption of EU common market regulations.
Opposition to the energy bill came from politicians and trade unions fearing Norway could lose control of its abundant hydroelectric resources.
To secure backing for the regulation, the government struck a compromise in advance with the main opposition Labour Party, promising that all power cables connecting Norway to other countries should be state-owned.
The deal with Labour could lead to the cancellation of NorthConnect, a planned 2-billion-euro private power cable between Norway and Scotland, which its backers had hoped to put into operation by 2023.
If NorthConnect does eventually go ahead, it would have to be under public ownership, Labour said.
Under the EEA treaty, Norway retains the right to refuse the adoption of EU rules, but has never done so as this would allow the EU to retaliate by suspending other parts of the agreement.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)