Whether you have been living in Norway for a while now, or you have recently started thinking of moving to this country, there is one thing that you finally want to understand, so as to get a clearer idea on the bills you should expect to get. In simple words, you want to figure out what the current electricity price in Norway is and what it is that actually affects it. By getting a better understanding of what affects the cost of the power, you may be able to gain better control over it – that is, not only over your consumption, but also over the price you are paying for electricity.
To say it differently, you may be able to gain more control over the bills you are receiving, which is definitely a big deal. If you’ve been in Norway for a while, then you must have seen some increases on those bills in recent years, and chances are that you are wondering what the current prices are, as well as what it is that affects those, and why it is that they have gone up recently. That is, without a doubt, a rather significant question that all consumers should get an answer to, so as for them to clearly understand how the prices are formed and why they are seeing the increases I have mentioned.
The same goes for if you are moving to this country. You want to get better familiarized with the prices of electricity in Norwegian households, as talked about in this article, and you also want to get a clearer picture on what it is that affects those prices, so as to be able to play your part in lowering the bills if that winds up being possible. So, it doesn’t matter if you’ve been a resident of Norway for a long time now, or if you’re new to the country, the questions on your mind are pretty much the same right now, when word goes of electricity, and below we are going to offer you the answers you need.
What Is the Current Electricity Price in Norway?
Let us begin with the most basic question here – what is the dagens strømpris in Norway? And, what should you expect to see on your bills? Well, the most significant thing that you have to understand here is that the price actually fluctuates, not only from one season to another, but actually from day to day. In fact, it even fluctuates during the day.
Norway is one of the largest producers of hydropower in Europe, and the power is traded on the Nord Pool, which is the power exchange created not only for the Nordic country, but also for many other countries in the Northern Europe. Meaning, thus, that the power is sold to a big number of companies through the Nord Pool. And then, it is those companies that later distribute the power to the main customer.
This being said, it is probably easy for you to conclude that the current price will have to do with the situation on the Nord Pool exchange. And, that is precisely why that price fluctuates during the day, as I have mentioned above. So, while you can expect it to be somewhere around 0.2€/kWH, the truth is that you won’t know for sure until you actually check the price for today. The great news is that the prices seem to have dropped a bit, compared to some of the previous years, which goes to show that the market is probably about to stabilize. Of course, a more stabilized market leads to happier end consumers, given that such stabilization is bound to reflect on the electricity prices and the actual bills people receive.
What Affects It Specifically?
The above should have made it clear that the prices actually fluctuate and that you, therefore, may not be able to say for sure how much electricity will cost at what point in the day. We do know that there are certain periods during the day when it is cheapest, such as late in the night and in the afternoon, when most people are at work. But, what you want to know is what it is that actually affects the prices of electricity in Norway. And, you want to get quite specific about it, which is why below I will provide you with a list of those factors that play a role in the costs of the power and in the bills you will receive as the end customer.
- The Supply and Demand
We cannot talk about what it is that affects the prices without actually touching upon the subject of supply and demand. In the simplest words possible, if the supply is low and the demand is high, the prices are bound to spike. And, the supply being low means that not enough electricity is produced in Norway itself, in which case the country may have to import some of it, which will further affect the costs. On the other hand, when the demand lowers, such as during the summer, the prices are certainly going to decrease. I suppose it is probably completely clear how the supply and the demand affect the prices of electricity, as those are the two factors that affect the cost of pretty much anything sold on the market.
· The Weather
Next, we can’t forget to mention the weather. Since Norway relies on hydropower to produce electricity, it should be perfectly logical to everyone that the weather will have a say in the actual amount it will produce. And thus, in the supply. When there is a lack of rainfall, for example, and then the water levels in the reservoirs are low, the supply may decrease, in which case the prices could go up. Norway relies on wind to a certain extent as well. Thus, when there is not enough wind, the country’s production of electricity will also be hindered, which is bound to ultimately affect the final prices and reflect on your actual bill. This is a factor that is beyond your control, but it is one that will have a significant impact on the prices of electricity in the country. · The Region Moving on, here is a factor that may not be completely beyond your control. Basically, the region you are living in will have a further influence on those prices. Usually, electricity is cheapest in the north part of the country, and most expensive in the south. As you will be able to see at www.bestestrøm.no/dagens-strømpris/, Norway is actually divided in 5 power regions, so where you live is definitely going to have a say in how much you’re paying. I mentioned that this may not be out of your control because, well, you could always move – although we’re sure you won’t be moving due to the power prices alone. · The International Market What happens when Norway cannot produce enough power to supply the whole country? Well, as I’ve mentioned above already, the country will rely on import in those cases. In fact, Norway definitely does rely on import to some extent. Meaning, therefore, that the international market, and the entire situation in the world, including gas prices and similar things, will affect the cost of the power as well. · The Supplier Finally, the supplier you are getting your electricity from is also going to have a say in the costs. I have already talked about the Nord Pool and about companies buying electricity there and then distributing it to the end consumers. Well, those companies have the right to add certain surcharges to the power they are selling, which means that you may pay different prices with different suppliers. This is, of course, why you should review the agreement you have with your current supplier, to determine if the actual terms work for you, as well as research other options, aiming at checking if you could score a better deal.