How to beat high energy prices in Norway and save money on your electricity bill
Consumers in Norway are paying more money than ever for electricity. The Local has spoken to experts for their tips on saving money on your energy bills.
Residents in Norway are paying more and more money for electricity.
According to data from Statistics Norway (SSB), Norwegian households paid an average of 117.2 øre/kWh for electricity (without fees and grid rent) in the year's first quarter.
The average electricity price for the whole country in the first quarter of 2022 was 75 øre/kWh higher than the average for the same period in the last five years – and there are currently no indications that the increasing trend will reverse.
However, there are significant regional differences, and those in the south typically pay more than in the north.
"As you know, there are five electricity price zones in Norway, and there are extreme price differences between the north and the south. The electricity price in Northern Norway is pretty low, but the transmission capacity isn't large enough, so all the excess hydropower can't be sent to the south.
"Therefore, the prices are a lot higher in the Oslo area, the Bergen area, and the southern market zones. These are connected to the UK and Germany by cables, so we see the influence of European prices feeding into Norwegian prices there," Nathalie Gerl, the lead power analyst at Refinitiv, told The Local.
At the end of May, state-owned Statnett announced that the supply situation in Norway might be under strain – in some scenarios – all the way up to and through the winter, especially if Southern Norway experiences drier than usual weather in the second part of the year.
High prices have left consumers struggling despite government support.
High prices led to the government introducing a temporary scheme that covered 55 percent of a consumer's energy bill that surpassed 70 øre/kWh. Following pressure, the percentage of the bill the state picked up was raised to 80 percent.
Despite the subsidy scheme, consumers in Norway are still feeling the pinch of high energy prices.
"We have some people (in the group) who are now forced to choose between paying for electricity bills and medicines – that's horrible.
"Furthermore, many people who live in Norway don't read or speak Norwegian. Many foreigners don't know much about the electricity market in Norway, so they get higher prices and bad deals with companies. For example, their landlord tells them to call a certain company and get electricity, and they follow the advice because they don't know better.
"In the group, a lot of international citizens ask for help, and we try to help them save money on electricity," Power expert and founder of Facebook group Prismatch Strøm, Mathias Nilsson, told The Local.
Lawyer Olav Sylte manages the Facebook group Vi som krever billigere strøm (we who demand cheaper electricity), has said the current scheme isn't working.
"Today, the subsidy covers 80% of expenses over 70 øre/kWh in a month. From August, it will be 90%. However, that doesn't help at all if the remaining 10% of the price turns out to be ten times more expensive than what people were paying before... We're talking about extreme increases in prices," Sylte said.
How to save money on your electricity bills
Both Slyte and Nilsson shared some tips on how to save money on electricity in Norway, and we compiled a list of their advice – along with additional suggestions from power companies operating in the Norwegian market.
You can find these tips below:
1. Get to know your electricity invoice – and different offers on the market
According to Nilsson, many people in Norway get their electricity invoices sent to them automatically and electronically, and they don't even bother to read them. The first step in formulating a plan is going through the invoice. After that, get informed on the options, prices, fees, and types of contracts available on the market.
2. Find contracts with no additional fees
Companies in Norway are now dropping fixed-price contracts because they're too risky. In the last week, multiple companies have cut their fixed-price contract offer or priced these agreements well above market price. However, you can still find companies that don't impose additional fees on you, so be sure to look for them.
3. Find non-binding contracts, use apps to plan electricity use
There are electricity companies in Norway that offer non-binding contracts, Nilsson points out, such as Tibber, Elekt, and Nordkraft. Some of them also have apps that allow you to see electricity prices and daily price overviews. You can use this information to avoid high-priced periods of the day and, for example, do your laundry on days or hours in the day with lower prices.
4. Price matching
If you get an offer from another electricity company, try contacting your company first and see if you can get the same price there. That way, you won't need to change energy suppliers often. Several companies in Norway are willing to match prices (e.g., Fjordkraft, NorgesEnergi).
5. Don't commit to offers on the spot
Don't get into contracts that are sold in person or over the phone. You will likely find cheaper options online.
6. Consider using heat pumps
Nilsson states that heat pumps are very efficient. By using heat pumps, people can often obtain a noticeable reduction in energy expenditure compared to a heating system based on electricity or other types of heating.
7. Changing personal habits
You can save a lot of money by, for example, cutting your shower time. According to Sylte, indoor heating can also often be lowered (e.g., floor heating, guest rooms, and similar), especially during the summer months.
8. Install a thermostat
Install a thermostat to control the heating of rooms and set up times when the temperature is lowered.
Comments
See Also
Residents in Norway are paying more and more money for electricity.
According to data from Statistics Norway (SSB), Norwegian households paid an average of 117.2 øre/kWh for electricity (without fees and grid rent) in the year's first quarter.
The average electricity price for the whole country in the first quarter of 2022 was 75 øre/kWh higher than the average for the same period in the last five years – and there are currently no indications that the increasing trend will reverse.
However, there are significant regional differences, and those in the south typically pay more than in the north.
"As you know, there are five electricity price zones in Norway, and there are extreme price differences between the north and the south. The electricity price in Northern Norway is pretty low, but the transmission capacity isn't large enough, so all the excess hydropower can't be sent to the south.
"Therefore, the prices are a lot higher in the Oslo area, the Bergen area, and the southern market zones. These are connected to the UK and Germany by cables, so we see the influence of European prices feeding into Norwegian prices there," Nathalie Gerl, the lead power analyst at Refinitiv, told The Local.
At the end of May, state-owned Statnett announced that the supply situation in Norway might be under strain – in some scenarios – all the way up to and through the winter, especially if Southern Norway experiences drier than usual weather in the second part of the year.
High prices have left consumers struggling despite government support.
High prices led to the government introducing a temporary scheme that covered 55 percent of a consumer's energy bill that surpassed 70 øre/kWh. Following pressure, the percentage of the bill the state picked up was raised to 80 percent.
Despite the subsidy scheme, consumers in Norway are still feeling the pinch of high energy prices.
"We have some people (in the group) who are now forced to choose between paying for electricity bills and medicines – that's horrible.
"Furthermore, many people who live in Norway don't read or speak Norwegian. Many foreigners don't know much about the electricity market in Norway, so they get higher prices and bad deals with companies. For example, their landlord tells them to call a certain company and get electricity, and they follow the advice because they don't know better.
"In the group, a lot of international citizens ask for help, and we try to help them save money on electricity," Power expert and founder of Facebook group Prismatch Strøm, Mathias Nilsson, told The Local.
Lawyer Olav Sylte manages the Facebook group Vi som krever billigere strøm (we who demand cheaper electricity), has said the current scheme isn't working.
"Today, the subsidy covers 80% of expenses over 70 øre/kWh in a month. From August, it will be 90%. However, that doesn't help at all if the remaining 10% of the price turns out to be ten times more expensive than what people were paying before... We're talking about extreme increases in prices," Sylte said.
How to save money on your electricity bills
Both Slyte and Nilsson shared some tips on how to save money on electricity in Norway, and we compiled a list of their advice – along with additional suggestions from power companies operating in the Norwegian market.
You can find these tips below:
1. Get to know your electricity invoice – and different offers on the market
According to Nilsson, many people in Norway get their electricity invoices sent to them automatically and electronically, and they don't even bother to read them. The first step in formulating a plan is going through the invoice. After that, get informed on the options, prices, fees, and types of contracts available on the market.
2. Find contracts with no additional fees
Companies in Norway are now dropping fixed-price contracts because they're too risky. In the last week, multiple companies have cut their fixed-price contract offer or priced these agreements well above market price. However, you can still find companies that don't impose additional fees on you, so be sure to look for them.
3. Find non-binding contracts, use apps to plan electricity use
There are electricity companies in Norway that offer non-binding contracts, Nilsson points out, such as Tibber, Elekt, and Nordkraft. Some of them also have apps that allow you to see electricity prices and daily price overviews. You can use this information to avoid high-priced periods of the day and, for example, do your laundry on days or hours in the day with lower prices.
4. Price matching
If you get an offer from another electricity company, try contacting your company first and see if you can get the same price there. That way, you won't need to change energy suppliers often. Several companies in Norway are willing to match prices (e.g., Fjordkraft, NorgesEnergi).
5. Don't commit to offers on the spot
Don't get into contracts that are sold in person or over the phone. You will likely find cheaper options online.
6. Consider using heat pumps
Nilsson states that heat pumps are very efficient. By using heat pumps, people can often obtain a noticeable reduction in energy expenditure compared to a heating system based on electricity or other types of heating.
7. Changing personal habits
You can save a lot of money by, for example, cutting your shower time. According to Sylte, indoor heating can also often be lowered (e.g., floor heating, guest rooms, and similar), especially during the summer months.
8. Install a thermostat
Install a thermostat to control the heating of rooms and set up times when the temperature is lowered.
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.