Still very low electricity price

Both in the second and third quarter of 2020 the electricity price was record low. Last time such a low price was recorded for household was in the third quarter of 2000.

In their quarterly electricity market report, the Norwegian Water Resources and Energy Directorate (NVE) emphasized that large hydrological surplus was an important reason for the very low electricity prices in the first part of third quarter. In the beginning of the third quarter the filling level in the water reservoirs was close to the historical maximum. A lot of rain, combined with snow melting in the mountains, increased the filling level even more to 94.1 per cent at the end of the quarter, according to NVE.

The overall price of electricity for households, including grid rent and taxes, was on average 72.9 øre per kWh in the third quarter of 2020, according to new figures from the electricity price statistics. This is 33 per cent lower compared to the third quarter of 2019. The price of electricity amounted to 20 per cent of the overall price, while grid rent and taxes amounted to 39 and 41 per cent respectively.

Spot price contracts cheapest

Households with spot price contracts had the cheapest contract type in the third quarter of 2020 with an average electricity price of 12.2 øre per kWh, excluding taxes and grid rent. Spot price contracts are the most common contract type for households (see figure 3). The average price for variable price contracts was 22.8 øre per kWh in the third quarter.

Households with new fixed-price contracts lasting 1 year or more had the most expensive contract type in the third quarter of 2020 with an average price of 38.1 øre per kWh, excluding taxes and grid rent. Only two per cent of households had this contract type in the third quarter of 2020.