UPDATE: This is how much electricity in Norway will cost this winter
Yet another price record has been set in southern Norway, and industry experts have predicted how much you can expect to pay for electricity this winter.
Dry weather, increased demand and exports to the continent have resulted in energy price records being set and re-set throughout the summer, autumn and early winter.
On Monday, the price of electricity in Norway was set to average around 2.56 kroner per kilowatt-hour. This is just the raw cost of electricity. When grid rent and other fees are included, this will be upwards of 3.74 kroner for households. Between 5-6pm the price of raw electricity will peak at around 4 kroner.
Why will energy prices continue to rise?
Reservoirs are only around 64.5 percent full, 20 percentage points lower than the average level of the past 20 years, according to the Norwegian Water Resources and Energy Directorate (NVE).
In addition, rainfall earlier in autumn which helped to replenish reservoirs, will not be used until later into the colder months, meaning it will not affect prices until then. Furthermore, hydroelectric stocks won't be topped up significantly until after the snow melts in the spring.
"What comes into the stocks now will be able to be used later in the autumn and winter, so it will not have any immediate effect on the price," Marius Holm Rennesund, a power analyst with Thema Consulting Group, told broadcaster NRK.
Another contributing factor to record high prices is the cost of energy across Europe.
"It will probably be a determining factor for the prices this winter, and it still looks like it will be expensive," Thomas Mathisen, head of operations and development at Gudbrandsdal Energi, said of prices on the continent, particularly in Germany, to NRK.
The newly functional North Sea Link power cable, which transfers power between the UK and Norway, is expected to increase prices in Norway. Energy experts have predicted to public broadcaster NRK that the new cable will bump electricity prices in the south by as much as 5 øre per kilowatt-hour.
READ MORE: Norway to provide renewable power to UK through underwater cable
How far will prices rise in Norway?
Electricity prices could be more than double what they were last year. This is because the cold winters in Norway mean the demand and usage of electricity go up, causing typically higher prices throughout the colder months.
Last year's record low prices always meant consumers were more likely to feel the squeeze this year. However, energy experts say billpayers in Norway face the prospect of paying double the costs they incurred last winter.
"It has been drier than normal throughout the year, in addition to little wind. If the dry weather continues, electricity prices will double compared to last year's winter," energy expert Kristian Fossum explained to electricity supplier Hafslund Strøm in late August.
Tor Reier Lilleholt, head of analysis at Volue Insight AS, has warned numerous times that high prices can be expected throughout winter.
He said that consumers could expect to pay upwards of 2 kroner per kilowatt-hour throughout the winter.
"The price to the end-user, when taxes, VAT and all this is included, will on average be over two kroner per kilowatt-hour throughout the winter. We will also have weeks when prices will be far above and below this," he told newswire NTB.
The energy expert previously estimated that the cost of raw energy alone, not accounting for other fees, would be 17,500 kroner for 2021 if current prices continue for a house that uses around 20,000 kWh of power each year. This includes an estimated raw energy cost of approximately 6,500 kroner for the last three months of the year.
He also predicted that next year the total energy bill for a house that consumes around 20,000 kWh each year could come in anywhere between 30,000- 40,000 kroner when considering all fees, such as taxes and grid rent.
What can I do to save on my energy bills?
As energy prices have sky-rocketed in Norway, we've been offering readers tips, tricks and advice on cutting down their energy bills. You can check out all of our coverage on soaring energy costs here.
An obvious way to use less electricity this winter is by using firewood to heat your home. But, of course, not all homes have a fireplace. Other ways to save energy include using timers on your appliances, using comparison sites to get the best deal and checking which subsidies and grants you might be entitled to from Enova to make your home more energy efficient in the long term.
Vocabulary
Nettleie: The nettleie or grid-rent is the price you pay for the wiring connections used to bring electricity into your home. The nettleie is a set price in Norway and does not change with different energy providers.
Strømregning: electricity bill
Rabatt: discount
Koblingsur: timers
Comments (1)
See Also
Dry weather, increased demand and exports to the continent have resulted in energy price records being set and re-set throughout the summer, autumn and early winter.
On Monday, the price of electricity in Norway was set to average around 2.56 kroner per kilowatt-hour. This is just the raw cost of electricity. When grid rent and other fees are included, this will be upwards of 3.74 kroner for households. Between 5-6pm the price of raw electricity will peak at around 4 kroner.
Why will energy prices continue to rise?
Reservoirs are only around 64.5 percent full, 20 percentage points lower than the average level of the past 20 years, according to the Norwegian Water Resources and Energy Directorate (NVE).
In addition, rainfall earlier in autumn which helped to replenish reservoirs, will not be used until later into the colder months, meaning it will not affect prices until then. Furthermore, hydroelectric stocks won't be topped up significantly until after the snow melts in the spring.
"What comes into the stocks now will be able to be used later in the autumn and winter, so it will not have any immediate effect on the price," Marius Holm Rennesund, a power analyst with Thema Consulting Group, told broadcaster NRK.
Another contributing factor to record high prices is the cost of energy across Europe.
"It will probably be a determining factor for the prices this winter, and it still looks like it will be expensive," Thomas Mathisen, head of operations and development at Gudbrandsdal Energi, said of prices on the continent, particularly in Germany, to NRK.
The newly functional North Sea Link power cable, which transfers power between the UK and Norway, is expected to increase prices in Norway. Energy experts have predicted to public broadcaster NRK that the new cable will bump electricity prices in the south by as much as 5 øre per kilowatt-hour.
READ MORE: Norway to provide renewable power to UK through underwater cable
How far will prices rise in Norway?
Electricity prices could be more than double what they were last year. This is because the cold winters in Norway mean the demand and usage of electricity go up, causing typically higher prices throughout the colder months.
Last year's record low prices always meant consumers were more likely to feel the squeeze this year. However, energy experts say billpayers in Norway face the prospect of paying double the costs they incurred last winter.
"It has been drier than normal throughout the year, in addition to little wind. If the dry weather continues, electricity prices will double compared to last year's winter," energy expert Kristian Fossum explained to electricity supplier Hafslund Strøm in late August.
Tor Reier Lilleholt, head of analysis at Volue Insight AS, has warned numerous times that high prices can be expected throughout winter.
He said that consumers could expect to pay upwards of 2 kroner per kilowatt-hour throughout the winter.
"The price to the end-user, when taxes, VAT and all this is included, will on average be over two kroner per kilowatt-hour throughout the winter. We will also have weeks when prices will be far above and below this," he told newswire NTB.
The energy expert previously estimated that the cost of raw energy alone, not accounting for other fees, would be 17,500 kroner for 2021 if current prices continue for a house that uses around 20,000 kWh of power each year. This includes an estimated raw energy cost of approximately 6,500 kroner for the last three months of the year.
He also predicted that next year the total energy bill for a house that consumes around 20,000 kWh each year could come in anywhere between 30,000- 40,000 kroner when considering all fees, such as taxes and grid rent.
What can I do to save on my energy bills?
As energy prices have sky-rocketed in Norway, we've been offering readers tips, tricks and advice on cutting down their energy bills. You can check out all of our coverage on soaring energy costs here.
An obvious way to use less electricity this winter is by using firewood to heat your home. But, of course, not all homes have a fireplace. Other ways to save energy include using timers on your appliances, using comparison sites to get the best deal and checking which subsidies and grants you might be entitled to from Enova to make your home more energy efficient in the long term.
Vocabulary
Nettleie: The nettleie or grid-rent is the price you pay for the wiring connections used to bring electricity into your home. The nettleie is a set price in Norway and does not change with different energy providers.
Strømregning: electricity bill
Rabatt: discount
Koblingsur: timers
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.