A weak krone gives Norwegians expensive electricity


Electricity prices are lower than in 2018, but a weak Norwegian krone means that the electricity bill will be higher.

The Nord Pool power exchange makes all turnover and settlement in euros. Thus, the relationship between the euro and the krone has a great effect on the electricity price.

– “When the Norwegian currency depreciates, the purchase price of electricity from Norwegian power suppliers becomes higher. Unfortunately, the increase in costs falls entirely to electricity customers, who suffer in this situation,” says Ishavskraft’s commercial manager Tom Eirik Olsen.

Although weakened prices for coal, gas and CO2, as well as better fill rates in the water reservoirs, lower prices than in 2018, the significantly weakened krone has offset much of the fall in prices. For a Norwegian electricity customer with normal consumption, this can amount to NOK 2,000 more a year in electricity, according to Olsen.

– “Over the past 17 years, the average price of one euro has been NOK 8.40. This year, the highest listing has been NOK 10.30. If the euro gets to 10.30 in 2020, it will increase the electricity price by more than 22 percent,” says Olsen.

However, there is little evidence of persistently high prices.

– “But the krone depreciation thus means that we have a higher electricity bill than we could have,” says Olsen.

© NTB Scanpix / #Norway Today


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