Weak krone may give more expensive electricity

PowerlinePowerline .Photo: pixabay.com

A weak Norwegian krone and strong euro could lead to more expensive electricity in 2019 according to the power supplier, Ishavskraft.

Trading on the Nordic power exchange, Nord Pool, takes place in euros. Thus, the exchange rate will affect the electricity prices in Norway wrote Ishavskraft in a press release.

‘’If we look at the euro exchange rate over the past 16 years and compare that with the current rate, that alone means an increase of approx. 10 øre/kwh to the electricity price’’ said commercial manager, Tom Eirik Olsen of Ishavskraft.

“If the euro is at a level of NOK 10, it will increase the electricity price by about 10 øre per kilowatt hour, compared to the average price per euro in the period 2002-2018” said Olsen. 10 øre per kilowatt hour means around 2,000 kroner more in electricity bills in a year, he explained.

Between 2002 and 2018, the average price was
NOK 8.30 for one euro. At most, one euro cost NOK 10.06.

“The high prices mean that the company sees
increased interest among the customers for a
means to reduce their electricity consumption’’
said marketing manager, Gunn Tove Bjerkan, somewhat unhelpfully.

© NTB Scanpix / #Norway Today

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