Significant drop in electricity prices

In their quarterly electricity market report, the Norwegian Water Resources and Energy Directorate points out that much rain, especially snow in combination with mild temperatures led to high water reservoirs level and an extraordinary strong hydrological balance in Norway.

The overall price of electricity for households, including grid rent and taxes, was on average 87.8 øre per kWh in the first quarter of 2020, according to new figures from the electricity price statistics. This is 29 per cent lower compared to the first quarter of 2019. The price of electricity amounted to 31 per cent, the grid rent 33 per cent and taxes came to 36 per cent. The overall price of electricity has not been lower since the first quarter of 2016.

Contracts with spot price the cheapest

Households with spot price contracts had the cheapest contract type in the first quarter of 2020 with an average electricity price of 22.9 øre per kWh, excluding taxes and grid rent. This is the most common contract type (see figure 3). During the first quarter of 2020 the spot price was at its lowest level in March. The spot price was about 30 øre per kW at the start of the first quarter, but plummeted to 6 øre per kWh at the end of the quarter.

Households with variable price contracts had the most expensive contract type in the first quarter of 2020 with an average electricity price of 40.3 øre per kWh, excluding taxes and grid rent. About one fifth of the households had this contract type in the first quarter of 2020.