Power prices in Norway may increase by 30% in the second half of this year, show new forecasts. This could give Norwegian electricity customers an extra bill of over 4,000 kroner.
Empty water reservoirs have led to the price of electricity being already more than twice as high as last year, and prices are now at winter levels.
‘’We have a forecast that gives an average electricity price of approximately 50 øre for the past six months of this year’’ said senior analyst Odd Gunnar Jakobsen of Wattsight to NRK news.
The reservoir did not fill up
The reason is very little water in the water reservoirs.Then there is less water to drain to power generation.
“We expect a very expensive winter,” said Jakobsen, who sees few opportunities for a normalisation of electricity prices now.
“We may have to have almost doubled the rainfall over a period of time to fill up the water reservoirs,” he believes.
The snowy winter did not fill up the reservoirs as many believed. According to NRK, the explanation is that some of the snow lay in the lowlands, and not at the height of the water reservoirs. In addition,water that could have created billions of kilowatt hours of electricity has evaporated while the rainfall has disappeared.
Requires tax cuts
Energy Norway believes the majority have used the years of low electricity prices to increase electricity costs. 35% of the electricity bill is now taxes to the state. Now they demand cuts.
‘’Elavgift is the first to be cut. Only it now amounts to more than NOK 14 billion, including VAT,’’ said Oluf Ulseth, CEO of Energy Norway.
He pointed out that the electricity tax alone has increased 60% in ten years and believes politicians must tame their zeal after taxing environmentally friendly electricity. But state secretary, Petter Kvinge Tvedt of Fremskrittsparti (Frp), at the Ministry of Finance will not promise lower electricity tax.
“The last time we set up the electricity tax actually was in 2016. The Elav tax will provide state revenues to roads, schools, hospitals, defense and police,as well as contribute to reduced consumption of electricity,” said Petter Kvinge Tvedt to NRK news.
© NTB scanpix / #Norway Today