A year of dry weather has given the highest electricity price in Norway since 2010.
The high price level is expected to last throughout autumn and may even increase
In the second quarter of this year, 40% less rain occurred in Norwegian power stations than usual, which contributed to a price level of 50 øre per kilowatt per hour. The market estimates that the monthly contracts for the autumn will continue to be on the same level.
Electricity prices may actually be even higher unless the rainfall level changes in the coming months.At worst, households may get a price increase this autumn, equivalent to an annual cost of 5,000 kroner, according to analyst chief Tor Reier Lilleholt in Wattsight.
“We are very dependent on normal rainfall in the autumn. If not, there is a danger that the electricity prices may get very high, he told NTB news.
Danger for 2019
“I’m also concerned for 2019 as there are often delays in power supply.The snow coming this autumn will melt and could be a power resource for spring 2019. Then it is important that there is plenty of snow,’’ he added.
Following a production level in 2017, which Lilleholt refers to as “comfortable”, production levels fell by 3.5 billion kilowatt hours in the second quarter of this year, compared with last year.However, it was a reminder to save water by 2017, according to the analyst.
“Producers must work for the principle of optimization of raw materials, and as the
conditions were at the end of 2017, it was correct with such a production level,” says
Warns against crisis maximization
Although the price cut for 2018 is the highest in eight years, it is still within normal variations Lilleholt reminded us and pointed out that the situation is manageable.
“It is also important to remind electricity customers that the electricity bill consists of one-third electricity, one-third net rental and one-third state electricity taxes. An increase in electricity prices often constitutes a modest increase in total electricity bills,’’ said the chief executive officer.
Tax alone, however, amounted to NOK 14 billion, including VAT, and had increased by 60% in the past ten years, according to Energy Norway. They think the tax level is a burden for customers.
“It also sends out an unfortunate signal for the use of climate-friendly energy. Electricity tax should therefore be reduced,’’ Energy Norway said in a press release.
© NTB scanpix / #Norway Today