The electricity price in third quarter of 2021 also increased substantially 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 very high electricity prices in most of Europe and low filling level in the water reservoirs in the south of Norway as important explanations for the very high electricity price in the southern part of Norway in the third quarter. An important explanation for the high electricity price in Europe is increased price of fuel and CO2-emmisions, which raised the price of electricity production from fossil fuels.

The overall price of electricity for households, including grid rent and taxes, was on average 147 øre per kWh in the third quarter of 2021, according to new figures from the electricity price statistics. This is 50 per cent higher compared to the average overall price for third quarter the last five years. The price of electricity amounted to 52 per cent of the overall price, while grid rent and taxes amounted to 18 and 30 per cent respectively.

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

Older fixed price contracts cheapest

Households with older fixed-price contracts paid on average the lowest price for electricity in the third quarter of 2021. The price of older fixed price contracts was 34,9 øre per kWh in the third quarter, while new fixed-price contracts, lasting 1 year or more, totaled 80.7 øre per kWh, excluding taxes and grid rent. Only 3.6 per cent of households had fixed price contracts in the third quarter. Households with contracts paid a high price in the third quarter of 2021 with an average electricity price of 79.4 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 69.7 øre per kWh.

Figure 2. Price of electric energy for households, taxes and grid rent excluded. Q3 2021

Figure 3. Distribution of contract types. Q3 2021