Electricity prices, Q4 2011

The average price for households was reduced considerably in 2011. In the first quarter, the average price totalled 57.5 øre/kWh, excluding grid rent and taxes, while in the fourth quarter of 2011 the price was 35 øre/kWh. The high electricity price in the first quarter of 2011 was mostly due to low temperatures and a record low reservoir filling. During the next three quarters, the situation completely changed. In the first week of 2011, the reservoir filling was 27 percentage points below the median filling level, while in week 52 the filling level was close to 9 percentage points higher than the median level.

The overall average price of electricity for households, including grid rent and taxes, amounted to 89.8 øre/kWh in the fourth quarter. In 2010 as a whole, the overall average price was 101.5 øre/kWh; 2.2 per cent lower compared to the year before. The grid rent and taxes came to 27.8 and 29.1 øre/kWh respectively.

Spot contracts cheaper than variable price contracts

Households tied to spot price contracts paid 44.1 øre/kWh on average, excluding grid rent and taxes, in 2011, while the price of variable price contracts amounted to 47.5 øre/kWh. One-year fixed-price contracts and other fixed-price contracts totalled 44.2 and 41.5 øre/kWh respectively.

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 fourth quarter was 36.5 øre/kWh, excluding taxes and grid rent. This is 18 per cent lower than the price in the fourth quarter of the previous year. In 2011 as a whole, the price increased by 7.4 per cent compared to the year before.

In manufacturing excl. energy-intensive manufacturing, the average price in the middle of the fourth quarter amounted to 29.7 øre per kWh. This is 16 per cent lower compared to the same period in 2010. The yearly average price increased by 12 per cent compared to 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 27.8 øre per kWh in the middle of the fourth quarter, excluding taxes and grid rent. This is 29 per cent higher than the fourth quarter of 2010. The annual average price increased by 20 per cent compared to 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 fourth quarter of 2011 was week 45. The average elspot price for the whole quarter was 5.9 øre/kWh lower than the elspot price in week 45.

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