Twofold increase in electricity price for households
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|
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
|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|
|Manufacturing excl. energy-intensive manufacturin||3.7||90.3||6.1|