Twofold increase in electricity price for households

The electricity price increased substantially in first quarter compared to 2020 when the price was very low throughout the year. In their quarterly electricity market report, the Norwegian Water Resources and Energy Directorate (NVE) emphasized that record high electricity consumption and periods of low wind power production in the Nordic countries contributed to the high electricity price in the first quarter. The electricity consumption was particularly high in January and February when the average temperature in Norway was 3.3 and 2.0 degrees bellow the normal temperature for the period 1991-2020 respectively.

The overall price of electricity for households, including grid rent and taxes, was on average 120 øre per kWh in the first quarter of 2021, according to new figures from the electricity price statistics. This is 37 per cent higher compared to the first quarter of 2020. The price of electricity amounted to 45 per cent of the overall price, while grid rent and taxes amounted to 23 and 32 per cent respectively.

Fixed price contracts cheapest

Households with fixed-price contracts paid on average the lowest price for electricity in the first quarter of 2021. The price of new fixed-price contracts, lasting 1 year or less, was 32.3 øre per kWh, excluding taxes and grid rent, in the first quarter of 2021. Only 2.3 per cent of households had fixed price contracts in the first quarter. Households with spot price contracts paid a considerably higher price in the first quarter of 2021 with an average electricity price of 53.8 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 54.4 øre per kWh in the first quarter.