Electricity prices increase for households

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The average price of electricity for households, excluding taxes and grid rent, was 33.1 øre per Kwh in the second quarter of 2017. This is an increase of 15 per cent compared to the second quarter in 2016.

The overall price of electricity for households, including grid rent and taxes, was on average 95 øre per kWh in the second quarter of 2017, according to figures from the statistic Electricity prices. This is over 7 per cent higher compared to the second quarter in 2016, which was a quarter of low electricity prices.

Of the overall price of electricity in the second quarter of 2017, the grid rent amounted to 27.9 øre per kWh, taxes 34 øre per kWh and the price of electricity to 33.1 øre per kWh.

Figure 1

Figure 1. Electrisity prices, grid rent and taxes for households

According to the Norwegian Water Resources and Energy Directorate (NVE), the main reason for the increase in electricity prices in the second quarter of 2017, compared with the previous year, is that the Norwegian reservoir filling rate was lower at the start of the period this year. However, this improved over the period and was at about the same level as the previous year at the end of the quarter.

Contracts with variable price were most expensive

Households with variable price contracts had the most expensive contract type in the second quarter of 2017, with an average electricity price of 36.5 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, the average electricity price was 32.1 øre per kWh.

New fixed-price contracts lasting up to one year had the cheapest contract type in the second quarter of 2017. The average electricity price for these was 30 øre / kWh. Few households receive power through fixed-price contracts, and these contracts represent a very low proportion of total power consumption.

Figure 2. Price of electric energy for households, taxes and grid rent excluded. 2nd quarter 2017
Figure 2. Price of electric energy for households, taxes and grid rent excluded. 2nd quarter 2017
Price Øre/kWh
New fixed price contracts, 1 year or less 30.0
New fixed price contracts, 1 year or more 30.6
All other fixed-price contracts 30.6
Contracts tied to spot price 31.8
Variable price (not tied to spot price) 36.5

Figure 3. Distribution of contract types. 2nd quarter 2017
Figure 3. Distribution of contract types. 2nd quarter 2017
Fixed-price contracts Contracts tied to spot price Variable price contracts
Households 1.68 69.20 29.10
Services 5.46 88.70 5.80
Manufacturing excl. energy-intensive manufacturin 7.25 89.90 2.90

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