High electricity prices for households
The average price of electricity for households, excluding taxes and grid rent, was 44.6 øre per kWh in the 2nd quarter of 2018. This is 35 per cent higher compared to the 2nd quarter in 2017 and the highest prices measured since the 2nd quarter in 2011.
The overall price of electricity for households, including grid rent and taxes, was on average 110.3 øre per kWh in the 2nd quarter of 2018. This is 16 per cent higher compared to the 2nd quarter in 2017. Of this the price of electricity amounted to 44.6 øre per kWh, the grid rent 28.9 øre per kWh and taxes came to 36.8 øre per kWh.
Figure 1. Electricity prices, grid rent and taxes for households
|Electricity price||Taxes||Grid rent|
The rise in electricity prices in the 2nd quarter of 2018, compared with the previous year must be seen in light of little inflow of water to the Norwegian water reservoirs and increased fuel prices which increased the price of imported electricity according to Norwegian Water Resources and Energy Directorate (NVE).
Contracts with variable price were most expensive
Households with variable price contracts had the most expensive contract type in the 2nd quarter of 2018 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 43.6 øre per kWh.
Households with old fixed-price contracts had the cheapest contract type in second quarter of 2018 with an average electricity price of 30.2 øre/kWh. Few households have 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. Q2 2018
|New fixed price contracts – 1 year or less||35.6|
|New fixed price contracts – 1 year or more||34.2|
|All other fixed-price contracts||30.2|
|Contracts tied to spot price||43.6|
|Variable price (not tied to spot price)||48.5|
Figure 3. Distribution of contract types. Q2 2018
|Fixed-price contracts||Contracts tied to spot price||Variable price contracts|
|Manufacturing excl. energy-intensive manufacturin||3.80||93.50||2.58|