The recent cold and dry weather has led to fears that the reservoirs will not be replenished.
Thus, the price of electricity has increased by over 40 percent.
As of September 14th the base price of electricity for delivery during the first three months of 2017 was roughly 24 cents per kilowatt hour – this is the net price before all taxes and tariffs.
This base price has risen to nearly 35 cents as of Tuesday this week – an increase of almost 46 percent, writes E24.
– Currently we have a good water supply in our reservoirs in southern Norway. Meanwhile, mid-Norway and northern Norway have a lower supply.
And not to mention there is less of a supply of water in the reservoirs in Sweden, says electricity expert John Brottemsmo.
Brottemsmo works as an Energy Analyst for the brokerage firm Bergen Energi and says that the price increase is partly due to fears in the market that the coming months could be cold and dry.
Power Meteorologist Frode Håvik Korneliussen in StormGeo is not able to calm the nervousness amongst the power traders:
– It has been dry throughout most of October, and it appears to continue. Should the forecasts continue as predicted, we could have a record dry October in most parts of the country, he said.
Source: NTB scanpix / Norway Today