More unstable electricity prices await, according to power organization

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The price of electricity could make several short-term increases ahead when solar and wind power replace more of the stable sources of coal and nuclear power, Energi Norge predicts.

Interest and employer organization Energi Norge is now preparing its customers for the electricity price to vary widely in the future, E24 writes.

In the short term, prices will increase, but in the longer term, Energi Norge expects prices in the power system to fall because much solar and wind power is produced. This can lead to price shocks in the winter, but extra cheap electricity in the summer when there is a large surplus in the market.

The power organization’s assumptions are in line with both Statnett and the Norwegian Water Resources and Energy Directorate’s estimates, according to E24.

However, customers should not be intimidated by major fluctuations in electricity prices, says CEO Toini Løvseth of Energi Norge.

“When there is that kind of imbalance between supply and demand, prices go up. But such variations over a short period of time are hardly noticeable on the electricity bill,” says Løvseth.

In October, electricity and grid rent in Norway increased by 5.4 per cent, according to the latest Consumer Price Index (KPI) from Statistics Norway (SSB).

© NTB Scanpix / #Norway Today

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