Electricity price decreased from a high level
The average price of electricity for households, excluding taxes and grid rent, was 42.5 øre per kWh in the third quarter of 2019. Compared to the third quarter of 2018, which had a very high price, the electricity price was down 23 per cent.
In their quarterly electricity market report NVE (the Norwegian Water Resources and Energy Directorate) points out that the water reservoirs level in Norway increased 10 per cent during the third quarter of 2019. A much better hydrological balance and lower fuel prices contributed to a lower electricity price compared to last years according to their report.
The overall price of electricity for households, including grid rent and taxes, was on average 108.8 øre per kWh in the third quarter of 2019, according to new figures from the electricity price statistics. This is 12 per cent lower compared to the third quarter in 2018. Of this the price of electricity amounted to 39 per cent, the grid rent 28 per cent and taxes came to 33 per cent.
Figure 1. Electricity prices, grid rent and taxes for households
|Grid rent||Taxes||Electricity price|
Contracts with variable prices were most expensive
Households with variable price contracts had the most expensive contract type in the third quarter of 2019 with an average electricity price of 48.5 øre per kWh, excluding taxes and grid rent. For households with contracts tied to the spot price, which is the most common type of contract (see figure 3), the average electricity price was 41.0 øre per kWh.
Households with old fixed-price contracts had the cheapest contract type in the third quarter with an average electricity price of 36.5 øre per kWh. Few households have power through fixed-price contracts, and these contracts represent a very low proportion of total power consumption in households.
Figure 2. Price of electric energy for households, taxes and grid rent excluded. Q3 2019
|New fixed price contracts – 1 year or less||38.8|
|New fixed price contracts – 1 year or more||42.9|
|All other fixed-price contracts||36.5|
|Contracts tied to spot price||41.0|
|Variable price (not tied to spot price)||48.5|
Figure 3. Distribution of contract types. Q3 2019
|Fixed-price contracts||Contracts tied to spot price||Variable price contracts|
|Manufacturing excl. energy-intensive manufacturin||8.6||89.8||1.7|