High electricity prices behind high profit
Energy and manufacturing
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Electricity, annual figures2006

As from December 2015 the statistics is published with Electricity.



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High electricity prices behind high profit

High electricity prices resulted in high annual profits in the power industry in 2006 despite lower production than in 2005. The operating profit increased by 21.7 per cent to NOK 30.3 billion, while the annual profit came to NOK 17.5 billion, an increase of 31.6 per cent compared with 2005.

Income statement for enterprises in electricity supply. NOK 1998.

Key figures for enterprises in electricity supply. 2006

The total electricity bill of households consists of the price of electric power, grid rent and public taxes (consumer tax and VAT). The total price paid by households increased from 62.0 øre/kWh in 2005 to 75.9 øre/kWh in 2006, excluding VAT. The power price, grid rent and consumer tax accounted for 41.6, 24.5 and 9.8 øre/kWh, respectively. The low inflow to Norwegian water reservoirs contributed to the high electricity prices.

The power price for pulp and paper products and power intensive manufacturing was 20.7 and 16.4 øre/kWh, respectively.

Operating profit margin

The operating profit margin is defined as operating profit divided by operating income. The operating profit margin decreased by 5.2 percentage points from 2005 to 2006 and was 14.2 per cent for the power industry as a whole.

Gross investments in the power industry rose by 6.6 per cent compared with 2005 and amounted to NOK 8.0 billion in 2006. Investments in water power plants, hydro-electric power stations, thermal power plants and wind power plants amounted to NOK 453 million, NOK 2192 million, NOK 824 million and NOK 184 million, respectively.

Investments in fixed assets, NOK 1998.

Potential, developed and permanent water courses.

Power production

The production of power came to 121.4 TWh in 2006, a decline of 12.0 per cent compared with 2005. Norway’s imports of power came to 9 802 GWh, while exports totalled 8 947 GWh, resulting in net imports of 855 GWh.

Lower consumption of electricity

There was a decrease of 2.6 per cent in consumption from 2005 to 2006 and total net consumption amounted to 111.1 TWh. The consumption by households totalled 32.3 TWh in 2006, a decline of 0.4 TWh in 2005.