Consumer price of electricity still high

Despite the drop in the price of electricity to households in recent months, the price level is still 8.6 per cent higher than in May last year. Fully 90 per cent of electric utilities still operate with a price level that is higher compared to the same time last year.

The consumer price climbed 0.3 per cent from April to May 1997. From May 1996 to May 1997 prices went up 2.7 per cent. There was a decline in the 12-month growth rate in the first quarter which was mainly connected to the change in the price of electricity. The all-items index for May was 269.7.

Even though the price of electricity to households has fallen in the last three months the price level of electricity is about 20 per cent higher than when the Norwegian electricity market was restructured in 1991. In the period 1991 to 1997, the valued added tax (VAT) has gone from 20 to 23 per cent, and charges for electricity have risen from 4 to 5.62 øre per kWh. Nonetheless, the higher VAT and increased charges do not completely explain the entire price increase for electricity during this period. Higher prices for both grid rental and power are other factors behind the increase in electricity prices.

New Statistics

Consumer price index at 15 May 1997.
Statistics are published every month in the Weekly Bulletin of Statistics. More information: Berit Koht, tel. +47 21 09 44 58, e-mail: bkt@ssb.no, Randi Johannessen, +47 21 09 47 30, e-mail: raj@ssb.no, Lasse Sandberg, tel. +47 21 09 47 16, e-mail: san@ssb.no, Geir Ormseth, tel. +47 21 09 47 22, e-mail: geo@ssb.no.

Weekly Bulletin issue no. 25, 1997