Record low electricity prices were registered in Norway in both the second and third quarters of this year. The prices have not been as low for households since the third quarter of 2000.
The average electricity price for households, excluding taxes and grid rent, was 14.4 øre per kilowatt-hour in the third quarter of the year.
This is about as low a price as the previous quarter, and a decrease of as much as 66% compared with last year’s third quarter, Statistics Norway (SSB) announced.
Lots of water
In its quarterly report on the electricity situation, the Norwegian Water Resources and Energy Directorate (NVE) pointed out that the level of water filling in the reservoirs in Norway at the beginning of the third quarter is close to the historical maximum, contributing to very low power prices throughout the first part of the quarter.
Heavy rainfall and snowmelt led to a further increase in the fill levels during the period, which reached 94% at the end of the quarter, according to NVE.
That is almost 12% points above the median value for the third quarter in the period 2000 to 2019.
Decrease of 33%
The total electricity price for households, including taxes and grid rent, was on average 72.9 øre per kilowatt-hour in the third quarter of this year, according to new figures from the statistics of Electricity prices.
That is a decrease of 33% compared to the third quarter last year.
Out of the total electricity price, the power price amounted to 20%, the grid rent to 39%, and the taxes on electric power the remaining 41%.
The grid rent and fees make up a larger part of the total electricity price in times of very low electricity prices.
Electric spot price contracts cheapest
Households with contracts linked to the electricity spot price had the cheapest type of contract in the third quarter of 2020, with an average electricity price of 12.2 øre per kilowatt-hour, excluding taxes and grid rent.
The average electricity price for variable price contracts was 22.8 øre per kilowatt-hour.
Households with new fixed-price contracts over a one-year duration had the most expensive type of contract in the third quarter with an electricity price of 38.1 øre per kilowatt-hour.
Only 2% of Norwegian households had such contracts in the third quarter of this year.
© NTB Scanpix / #Norway Today