Warmer weather and more precipitation have helped bring down electricity rates in Norway, after an unusually expensive January. They hit their lowest level in three months this past week.
“We’ve gone from a situation with cold, winter weather to milder, and not least wetter, weather forecasts,” John Brottesmo, a power analyst for Kinect Energy, told newspaper Dagens Næringsliv (DN) this week. He says the change in the weather was the most important reason that electricity rates fell by more than expected, after some shocking bills last month.
Rates rose well over 70 øre per kilowatt hour in January, double what they were in the same month a year earlier. This week rates fell to just over 40 øre, still high by Norwegian standards because of the country’s abundant hydro-electric power, but only a bit higher than last year at this time.
There’s still much less snow in the mountains than normal, though, and Norway’s reservoirs still haven’t filled up after last summer’s drought. More snow and rain in the past few weeks have helped, though, and analysts are now predicting somewhat lower electricity rates ahead.