Higher electricity prices for households
The average price of electricity for households, excluding taxes and grid rent, was 42.5 øre per kWh in the first quarter of 2018. This is 24 per cent higher compared to the first quarter in 2017.
The overall price of electricity for households, including grid rent and taxes, was 106.4 øre per kWh on average in the first quarter of 2018. This is 10 per cent higher compared to the first quarter in 2017. Of this, the price of electricity amounted to 42.5 øre per kWh, the grid rent 27.9 øre per kWh and taxes came to 36.0 øre per kWh.
The rise in electricity prices in the first quarter of 2018 from the previous year must be seen in light of higher electricity consumption due to the cold weather and increased fuel and CO2 prices, according to the Norwegian Water Resources and Energy Directorate (NVE). Statistics Norway’s monthly electricity statistics show an increase in the total electricity consumption of 7 per cent from the first quarter in 2017 to the first quarter in 2018.
Contracts with variable prices were most expensive
Households with variable price contracts had the most expensive contract type in the first quarter of 2018, with an average electricity price of 44.4 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 42.2 øre per kWh. New fixed-price contracts lasting more than one year had the cheapest contract type in the first quarter of 2018 with an average electricity price of 27.6 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. Q1 2018
|New fixed price contracts – 1 year or less||32.9|
|New fixed price contracts – 1 year or more||27.6|
|All other fixed-price contracts||30.4|
|Contracts tied to spot price||42.2|
|Variable price (not tied to spot price)||44.4|
Figure 3. Distribution of contract types. Q1 2018
|Fixed-price contracts||Contracts tied to spot price||Variable price contracts|
|Manufacturing excl. energy-intensive manufacturin||4.97||92.44||2.58|