Still high electricity prices for households
The average price of electricity for households, excluding taxes and grid rent, was 55.3 øre per kWh in the third quarter of 2018. This is 66 per cent higher compared to the third quarter in 2017 and the highest prices measured since the first quarter in 2011.
The overall price of electricity for households, including grid rent and taxes, was on average 123.4 øre per kWh in the third quarter of 2018, according to new figures from the electricity price statistics. This is 30 per cent higher compared to the third quarter in 2017. Of this the price of electricity amounted to 55.3 øre per kWh, the grid rent 28.9 øre per kWh and taxes came to 39.2 øre per kWh.
Figure 1. Electricity prices, grid rent and taxes for households
|Grid rent||Taxes||Electricity price|
The rise in the electricity prices in the third quarter of 2018 compared with the same period last year must be seen in light of the shortage of energy in the hydro power system, according to Norwegian Water Resources and Energy Directorate (NVE). The shortage contributed to the electricity price in Norway being close to the price in neighbouring countries, which was higher compared with the previous year due to higher prices on gas, coal and CO2 emissions.
Contracts with variable price most expensive
Households with variable price contracts had the most expensive contract type in the third quarter of 2018 with an average electricity price of 59.9 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 54.3 øre per kWh.
Figure 2. Price of electric energy for households, taxes and grid rent excluded. Q3 2018
|New fixed price contracts – 1 year or less||43.6|
|New fixed price contracts – 1 year or more||41.8|
|All other fixed-price contracts||32.3|
|Contracts tied to spot price||54.3|
|Variable price (not tied to spot price)||59.9|
Households with old fixed-price contracts had the cheapest contract type in the third quarter of 2018 with an average electricity price of 32.3 øre/kWh. Few households have power through fixed-price contracts, and these contracts represent a very low proportion of total power consumption.
Figure 3. Distribution of contract types. Q3 2018
|Fixed-price contracts||Contracts tied to spot price||Variable price contracts|
|Manufacturing excl. energy-intensive manufacturin||10.50||87.10||2.40|