In 2020, Norway registered the lowest electricity price in the last 18 years

The start of 2021 has been very cold, and electricity prices have set new records. Last year, on the other hand, electricity prices were very low.

While Norwegians are receiving huge electricity bills these days, last year’s electricity price was actually at its lowest since 2002, according to Statistics Norway (SSB).

The average electricity price for households, excluding taxes and grid rent, was 20.7 øre per kilowatt-hour (kWh) in 2020. That is as much as 57% lower than the year before.

In comparison, the electricity price in the first week of February this year was up to 80 øre per kilowatt-hour, without taxes and grid rent. The reason? A record amount of snow in the mountains in the winter of 2019/2020, and a very strong hydrological balance throughout the year.

The hydrological balance is the sum of the estimated energy amount received from water and the country’s water reservoirs’ filling level.

The total electricity price for households, which consists of both power prices, grid rent, and taxes, was on average 80.3 øre / kWh in 2020, which is 31% lower than in 2019.

Electricity agreements

The SSB figures also show that in 2020 spot price agreements for electricity performed better for consumers than variable price agreements or older fixed price agreements. 

The price was as low as 17.8 øre / kWh for spot price agreements, while those with variable agreements paid an average of 30.4 øre / kWh. 

The average for those with older fixed price agreements was as much as 35.6 øre / kWh, excluding taxes and grid rent.

But, fortunately, there are very few households in Norway that still have such expensive fixed price agreements.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

Do you have a news tip for Norway Today? We want to hear it. Get in touch at [email protected]