Norway

Electricity prices in Norway may remain high until spring

Drought, rainfall and expensive coal and gas have all contributed to high electricity prices. Festive season is around the corner, more electricity usage will be recorded in coming days which will eventually increase electricity bills. On Tuesday, a kilowattime cost 52.7 øre, writes Dagbladet.

Based on Nasdaq’s monthly contracts, the market expects the price to remain at the same level in the future, says information manager Aslak Øverås in Energy Norway to Dinside.no. The contracts for January to March are all at around 50 øre per kilowattime, which indicates that the electricity will remain expensive until spring.

In recent years, the prices of electricity in winter have been relatively low and we have to return to 2010 or 2011 to find the same price level as we have this winter. The weather this year has contributed to the high prices, with great fluctuations from dry summer to record wet harvest. In addition, higher prices for coal, gas and CO2 emissions have brought European electricity prices upwards.

In the third quarter of this year, production and exports were lower than in the same period last year, and for a few weeks we were net importers of electricity.

“This means that power producers have saved water for the winter,” explains Øverås, adding that the rain this autumn has filled up the water reservoirs to closer to the norm for the season.

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