Power companies positive about offering a maximum electricity price 

ElectricityPhoto: Håkon Mosvold Larsen / NTB
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The large power companies are positive about offering a fixed price for electricity from the New Year, but the electricity company Tibber believes that most people will lose out.

The government has proposed that the power companies should be able to offer households fixed price agreements for electricity in contracts over three, five, and seven years. However, that could be expensive if prices fall within that period.

Several of the large power companies in Norway are positive about fixed prices, the newspaper Aftenposten writes. CEO of Lyse, Eimund Nygaard, says the price must be lower than today’s spot prices.

“So, there will always be a certain risk for both the electricity producer and the customer. But I have faith that we can find a market-wise sensible solution,” Nygaard noted.

PR manager Kristian Myrseth in Fortum says they will offer fixed-price agreements with terms that are acceptable to everyone. Still, he thinks households wouldn’t want agreements that last three to seven years.

Although most companies are positive, Tibbers CEO Edgeir Aksnes Vårdal is cautious.

“Through traditional fixed price agreements, you risk binding yourself to an agreement where you have to pay too much for electricity for many years,” Vårdal warned.

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

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