Twofold increase in electricity price for households

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The average price of electricity for households, excluding taxes and grid rent, was 53.5 øre per kWh in the first quarter of 2021. This is about twice as high compared to the first quarter of 2020 when the price was very low.

The electricity price increased substantially in first quarter compared to 2020 when the price was very low throughout the year. In their quarterly electricity market report, the Norwegian Water Resources and Energy Directorate (NVE) emphasized that record high electricity consumption and periods of low wind power production in the Nordic countries contributed to the high electricity price in the first quarter. The electricity consumption was particularly high in January and February when the average temperature in Norway was 3.3 and 2.0 degrees bellow the normal temperature for the period 1991-2020 respectively.

The overall price of electricity for households, including grid rent and taxes, was on average 120 øre per kWh in the first quarter of 2021, according to new figures from the electricity price statistics. This is 37 per cent higher compared to the first quarter of 2020. The price of electricity amounted to 45 per cent of the overall price, while grid rent and taxes amounted to 23 and 32 per cent respectively.

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

Electricity price Taxes Grid rent
Q1-2012 34.4 26.9 26.3
Q2-2012 26.1 25 26.3
Q3-2012 20 23.6 26.1
Q4-2012 30.4 26.3 26.4
Q1-2013 34.9 27.3 26.4
Q2-2013 34.6 27.1 26.4
Q3-2013 33.4 26.7 26.4
Q4-2013 35.6 27.3 26.4
Q1-2014 31.5 27.3 26.0
Q2-2014 26.6 26.3 26.0
Q3-2014 31.6 27.3 26.0
Q4-2014 31.7 27.4 26.0
Q1-2015 31.3 29.8 26.3
Q2-2015 26.0 28.7 26.3
Q3-2015 20.0 27.9 26.0
Q4-2015 25.9 29.2 26.0
Q1-2016 28.7 32.1 26.6
Q2-2016 28.8 32.3 27.3
Q3-2016 30.5 32.7 27.3
Q4-2016 37.6 34.9 27.9
Q1-2017 34.3 34.3 27.9
Q2-2017 33.1 33.9 27.9
Q3-2017 33.3 34.0 27.9
Q4-2017 36.0 34.5 27.9
Q1-2018 42.5 36.0 27.9
Q2-2018 44.6 36.8 28.9
Q3-2018 55.3 39.2 28.9
Q4-2018 54.8 39.2 29.4
Q1-2019 55.2 38.7 30.4
Q2-2019 45.6 36.6 30.4
Q3-2019 42.5 35.9 30.4
Q4-2019 46.8 36.6 28.9
Q1-2020 26.8 32.1 28.9
Q2-2020 14.9 29.8 28.1
Q3-2020 14.4 29.9 28.6
Q4-2020 22.2 31.6 28.6
Q1-2021 53.5 38.9 27.6

Fixed price contracts cheapest

Households with fixed-price contracts paid on average the lowest price for electricity in the first quarter of 2021. The price of new fixed-price contracts, lasting 1 year or less, was 32.3 øre per kWh, excluding taxes and grid rent, in the first quarter of 2021. Only 2.3 per cent of households had fixed price contracts in the first quarter. Households with spot price contracts paid a considerably higher price in the first quarter of 2021 with an average electricity price of 53.8 øre per kWh, excluding taxes and grid rent. Spot price contracts are the most common contract type for households (see figure 3). The average price for variable price contracts was 54.4 øre per kWh in the first quarter.

Figure 2. Price of electric energy for households, taxes and grid rent excluded. Q1 2021

Øre/kWh
New fixed price contracts – 1 year or less 32.3
New fixed price contracts – 1 year or more 32.4
All other fixed-price contracts 36.6
Contracts tied to spot price 53.8
Variable price (not tied to spot price) 54.4

Figure 3. Distribution of contract types. Q1 2021

Fixed-price contracts Contracts tied to spot price Variable price contracts
Households 2.3 76.1 21.6
Services 7.3 86.6 6.1
Manufacturing excl. energy-intensive manufacturin 3.7 90.3 6.1