The price of electricity has never been so low in Norway, after lots of snow in the mountains last winter and lots of rain this summer have fueled the country’s hydroelectric plants. Analysts think electricity rates will stay low throughout the fall and winter.
“Rates are lying at around 1.5 øre (1.5 percent of a krone) per kilowatt hour in Southern Norway, and that’s incredibly low,” power analyst Ole Tom Djupskås told newspaper Dagens Næringsliv (DN) late last week. It’s also historically low, reported DN, following a winter that was unusually warm.
That reduced consumption as reservoirs filled up in the mountains. Djupskås thinks average electricity rates in Norway will lie at around 20 øre per kilowatt hour in the fourth quarter, with the network (distribution) costs of electricity and taxes making up the largest portion of monthly bills.