Electricity prices, Q3 2011

The average price for household contracts was 34.5 øre/kWh in the third quarter (week 32).

The overall average price of electricity for households, including grid rent and taxes, amounted to 89.2 øre/kWh in the third quarter. The grid rent and taxes came to 27.8 and 26.9 øre/kWh respectively. Compared to the same quarter in 2010, the sum total electricity price faced by the households went down by 4.6 per cent.

Rainy weather and increased water reservoirs

The service industry and manufacturing (excl. energy-intensive manufacturing) follow the same pattern as the households, with a marked decline in prices compared to the middle of the third quarter in 2010. The price drop is connected to the increased level of water in the Norwegian reservoirs. The level of water in the reservoirs was 77.3 per cent in the middle of the third quarter this year, compared to 65.3 per cent at the same time last year, according to the Norwegian Water Resources and Energy Directorate (NVE). This increase in water levels is due to unusually large amounts of rainfall in Norway during the spring and summer months.

Variable price contracts more expensive than spot contracts

The price to households broken down by contract types shows that fixed price contracts were the most expensive contract type on average in the middle of the third quarter, followed by variable price contracts. One-year fixed-price contracts and other fixed-price contracts totalled 42.6 and 41.3 øre/kWh respectively. Households tied to variable price contracts amounted to 37.8 øre/kWh on average in the middle of the third quarter of 2011. Spot contracts were the cheapest contract type in the period, at an average cost of 31.2 øre/kWh; a total of 6.6 øre/kWh cheaper than the average for variable price contracts.

Lower electricity prices for the service industry and in manufacturing excl. energy-intensive manufacturing

The average price of electricity in the service industry in the middle of the third quarter in 2011 was 32.9 øre/kWh, excluding taxes and grid rent, in the middle of the second quarter. This is 9.7 per cent lower than the price one year ago.

In manufacturing excl. energy-intensive manufacturing the average price in the middle of the third quarter amounted to 27.9 øre per kWh. This is 4 per cent lower compared to the same period in 2010.

Increase in electricity prices for energy-intensive manufacturing

For energy-intensive manufacturing and the pulp and paper industry, the average price of electricity was 24.4 øre per kWh in the middle of the third quarter, excluding taxes and grid rent. This is 17.6 per cent higher than the second quarter of 2010. The price increase must be viewed in conjunction with the substantial reduction in the share of contracts not entered in the market, and the increase in more expensive contracts like spot and fixed price contracts.

The measuring period for the third quarter of 2011 was week 32. The average elspot price for the whole quarter was 0.8 øre/kWh higher than the elspot price in week 32.

Tables:

• Table 1 Electricity prices in the end-user market, quarterly. Exclusive taxes. øre/kWh
• Table 2 Electricity prices and grid rent for households, quarterly
• Table 3 Range of electricity prices in end-user market and distribution of sold quantity in the sample
• Table 4 Time series covering quarterly and yearly prices of electric energy, taxes excluded. øre/kWh
• Table 5 Time series covering quarterly and yearly prices of electric energy for households, taxes included. øre/kWh
• Table 6 Electricity prices in the wholesale market, quarterly. øre/kWh
• Table 7 Time series covering quarterly and yearly prices of electric energy in the whole sale market, taxes excluded. øre/kWh