Higher electricity prices for households

PowerPower.Photo: pixabay.com

Higher electricity prices for Norwegian households

The average price of electricity for households, excluding taxes and grid rent, was 33.3 øre for one kWh in the third quarter of 2017. This is an increase of 9 per cent compared to the third quarter of 2016. 

 

The overall price of electricity for households, including grid rent and taxes, was on average 95.2 øre per kilowatt hour (kWh) during the third quarter of 2017, according to updated figures from Electricity prices. This is over 5 per cent more compared to the third quarter of 2016.

Of the overall price of electricity in the second term of 2017 the grid rent amounted to 27.9 øre per kWh, taxes 34 øre per kWh and the price of electricity at 33.3 øre per kWh.

According to the Norwegian Water Resources and Energy Directorate (NVE), the main reason for the increase in electricity prices in the third quarter of 2017, compared with the previous year, is due to high export of electricity because of unusually much stops in production of Swedish nuclear power. The increased price is also associated with a higher price level for coal. This is of course contrary to the promise that Norwegian power prices was never to be linked to so called “dirty” energy when Norway connected to the European power market.

Contracts with variable prices most expensive

Households with variable price contracts had the most expensive contract type in the third quarter of 2017 with an average electricity price of 36 øre per kWh, excluding taxes and grid rent.

For households with contracts tied to the spot price, which is the most common type of contract, the average price of electricity was 32.3 øre per kWh. Newly made fixed-price contracts lasting for one year were the cheapest in the third quarter of 2017.

The average price of electricity for these contracts were 31 øre / kWh. Few households is provided power through fixed-price contracts, and these also represent a very low proportion of the gross power consumption.

If you are not aware: 1 øre (ear) is the Norwegian word for “cent”,  i.e NOK 1/100 and is no longer available as coinage.

 

©  SSB / Norway Today

 

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