Very low electricity prices in the second quarter
The average price of electricity for households, excluding taxes and grid rent, was 14.9 øre per kWh in the second quarter of 2020. This is 67 per cent lower compared to the second quarter of 2019 and a record low electricity price.
In their quarterly electricity market report, the Norwegian Water Resources and Energy Directorate emphasized high electricity production, a large hydrological surplus and reduced export capacities as important reasons for the record low electricity prices in Norway in the second quarter.
The overall price of electricity for households, including grid rent and taxes, was on average 72.8 øre per kWh in the second quarter of 2020, according to new figures from the electricity price statistics. This is 35 per cent lower compared to the second quarter of 2019. The price of electricity amounted to 20 per cent, the grid rent 39 per cent and taxes came to 41 per cent.
Figure 1. Electricity prices, grid rent and taxes for households
|Electricity price||Taxes||Grid rent|
Spot price contracts cheapest
Households with spot price contracts had the cheapest contract type in the second quarter of 2020 with an average electricity price of 12.3 øre per kWh, excluding taxes and grid rent. This is the lowest spot price recorded since the third quarter of 2007. Spot price contracts are the most common contract type for households (see figure 3).
Households with older fixed price contracts had the most expensive contract type in the second quarter of 2020 with an average electricity price of 35.5 øre per kWh, excluding taxes and grid rent. Only two per cent of households had this contract type in the second quarter of 2020.
Figure 2.Price of electric energy for households, taxes and grid rent excluded. Q2 2020
|New fixed price contracts – 1 year or less||23.7|
|New fixed price contracts – 1 year or more||34.3|
|All other fixed-price contracts||35.5|
|Contracts tied to spot price||12.3|
|Variable price (not tied to spot price)||22.8|
Figure 3. Distribution of contract types. Q2 2020
|Fixed-price contracts||Contracts tied to spot price||Variable price contracts|
|Manufacturing excl. energy-intensive manufacturin||5.3||88.3||6.4|