Prices of electric energy, 1st quarter 2010 Higher electricity prices

Cost of electric energy

Energy

The average price of electricity was higher for all groups in the middle of the first quarter compared to last year. The average price for households increased by 32.4 per cent compared to the first quarter in 2009.

Cold and dry weather led to higher electricity prices in the first quarter. Due to unusually low temperatures, net consumption of electricity was record high in both January and February. At the same time, the inflow of water to the reservoirs and the amount of snow in the mountains was below normal. Reduced production at Swedish nuclear power plants and repairs on the NorNed cable may also have contributed to the price increase.

The overall average price of electricity for households, including grid rent and taxes, amounted to 112 øre per kWh in the first quarter. The grid rent and taxes came to 27.6 and 30.8 øre/kWh respectively.

Expensive spot contracts

Households tied to spot price contracts paid 57.8 øre/kWh on average, including grid rent and taxes, in the first quarter of 2010. This is higher than both fixed price contracts and variable price contracts (not tied to spot price). Variable price contracts amounted to 49.6 øre/kWh, while one-year fixed-price contracts and other fixed-price contracts totalled 37.8 and 40.1 øre per kWh respectively.

Higher electricity prices for service industry and manufacturing excl. energy-intensive manufacturing and pulp and paper industry

The average price of electricity in the service industry was 52.8 øre per kWh, excluding taxes and grid rent, in the middle of the first quarter. This is 36 per cent higher than one year ago.

In manufacturing excl. energy-intensive manufacturing and the pulp and paper industry, the average price in the first quarter amounted to 45.8 øre per kWh. This is 38 per cent higher compared to the same quarter in 2009.

Higher electricity prices for energy-intensive manufacturing and the pulp and paper industry

For energy-intensive manufacturing and the pulp and paper industry, the average price of electricity was 24.5 øre per kWh in the first quarter, excluding taxes and grid rent. This is 16.6 per cent higher than one year ago.

The measuring period for the first quarter of 2010 was week 6. The average elspot price for the entire quarter corresponds well with the elspot price in the measuring period.

Source: Statistics Norway

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