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The price of power to industries with a power requirement of under 10 MW has risen from 17.3 to 17.9 øre/kWh from 1 July last year to 1 January this year. The difference between the two prices is now less than half a year ago. This is because power plants are increasingly offering the same price for power, irrespective of the customer's annual consumption and power drawn down, in new one-year contracts.
The price of power in new one-year contracts with industrial customers with a power requirement under 10 MW has climbed by about four per cent in the last half year, while transmission tariffs have risen five per cent.
The increase in transmission tariffs is due to many reasons. A combination of increased normal returns and new income frameworks for power transmission operations, and the writing-up of grid systems over the past four years, have enabled power plants to increase tariffs. For 1998, the Norwegian Water Resources and Energy Administration has increased the permitted normal return from 7.5 to 8.3 per cent. Transmission tariffs were also somewhat low in1997 because power transmission operations in the power plants had to pay back additional returns from the 1995 and 1996 income years.
Weekly Bulletin issue no. 9, 1998