Lower energy prices, higher grid rent
Energy and manufacturing
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Electricity, annual figures1999

As from December 2015 the statistics is published with Electricity.



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Lower energy prices, higher grid rent

The production of electric energy was 122 445 GWh in 1999. The high production led to lower prices. The average price of electric energy was 15.2 øre/kWh, a decline of 9.5 per cent, while the grid rent rose by 4.4 per cent.

The total price of electric energy and transmission decreased by 2.8 per cent.

Higher production

1999 was characterised by much rain and snow, and the production of electric energy rose by 4.9 per cent from 1998. With normal amount of rain and snow the Norwegian production of electric energy a year is 118 TWh. While the production was 122.5 TWh in 1999, the preliminary figures for 2000 show that we have entered the new millennium with rain and reached a production of 143 TWh. Exports of electric energy doubled in 1999, and imports fell by 14.8 per cent.

No changes in consumption

In spite of lower prices the consumption did not change from 1998 to 1999, and the net consumption was 110.5 Twh. The consumption has increased the last years, and Norway is among the highest consumers of electric energy in the world. There are several reasons for this high consumption. Other economies have a different combination of energy use that includes more oil, gas and district heating. The Norwegian energy use is slightly above the average of the OECD economies.

The largest consumers are households and agriculture who consume 33 per cent of the total. The plentiful access to inexpensive water power has led to a high amount of energy intensive industry that consumes 30 per cent of the total.

Lower power prices but higher grid rent

The total bill for electric energy to the consumer is composed by the price, transmission, VAT (value added tax) and excise on electric energy. The grid rent is payment for the transmission of electric energy, and the prices are regulated by The Directorate of Water and Energy. The price on electric energy is payment for the power itself, and in this part of the market there is open competition. For an average household consumer the bill is roughly divided by a third to each part.

The price on electric energy varies a great deal during a year, and from one year to another. For the producers of water power the trickle of water is decisive for how much and to what price they can offer electric energy. In 1999 there was more rain and snow than in a normal year, and the power business could offer more and cheaper power in the market, and total prices fell by 9.5 per cent.

The grid rent rose by 4.4 per cent. The grid rent varies over different parts of Norway, and is among other things due to how many consumers that make use of the transmission net.

High sales income gives no change in business results

The sales income in the power sector rose by 20 per cent in 1999. Nevertheless, the operating result fell by 2 per cent to 10.5 billion NOK in 1999. Fixed assets like the power stations, grid systems and other fixed assets amount to 84 per cent of total liabilities and equity. The average for all joint-stock companies in Norwegian industry was 48 per cent.