The electricity price increased substantially in second quarter of 2021 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 higher price on fuel and CO2-emmisions contributed to high electricity price in the second quarter. Increased price of fuel and CO2-emmisions raised the price of electricity production from fossil fuels in Europe. Since the Norwegian and European electricity marked is closely linked, the electricity prices also increased in Norway in the second quarter.
The overall price of electricity for households, including grid rent and taxes, was on average 116.1 øre per kWh in the second quarter of 2021, according to new figures from the electricity price statistics. This is 60 per cent higher compared to the second quarter of 2020. The price of electricity amounted to 44 per cent of the overall price, while grid rent and taxes amounted to 23 and 33 per cent respectively.
Fixed price contracts cheapest
Households with fixed-price contracts paid on average the lowest price for electricity in the second quarter of 2021. The price of new fixed-price contracts, lasting 1 year or more, was 28.4 øre per kWh, excluding taxes and grid rent, in the second quarter. Only 2.5 per cent of households had fixed price contracts in the second quarter. Households with contracts paid a considerably higher price in the second quarter of 2021 with an average electricity price of 50.3 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 55.2 øre per kWh.