CPI up 3.3 per cent last 12 months

From October 1, the Norgespris scheme was introduced for household electricity consumption. The program allows households to choose a fixed electricity price — currently set at NOK 0.50 per kWh including VAT, plus any surcharge from the power supplier. The contract runs until the end of 2026. 

To quantify the impact of the Norgespris scheme, we must account for the fact that participating households would otherwise have received electricity subsidies. When substituting those subsidies for Norgespris in the calculations, we find that the increase in national electricity prices from September to October would have been about six percentage points higher. In other words, the introduction of Norgespris reduced electricity prices measured in the CPI by roughly six percentage points in its first month.

Throughout October, an increasing number of households in southern Norway joined the scheme. In the CPI calculations for October, we assumed that 40%, 55%, and 31% of households in price areas 1, 2, and 5, respectively, had registered for Norgespris. For holiday homes, the corresponding shares were 62%, 69%, and 56%. These figures are based on Elhub registrations as of October 26 and will be updated monthly.