Electricity prices vary less between north and south

The spot price in southern Norway was almost 40 per cent lower in March than in the same month last year. This is the lowest price for the month of March that we have seen in three years, according to Renewable Norway’s electricity price index.

On average, people received an electricity bill of between NOK 2,034 and 2,183.

Electricity prices in southern Norway are on the way down once more following the sharp rise we have experienced in the last two years. Prices skyrocketed following Russia cut gas exports to Europe in autumn 2021.

Gets less power support

Even though electricity prices have fallen sharply, ordinary people will get electricity bills that are regarding the same level as last year.

– The reason is that households are now paid much less electricity subsidy, writes Fornybar Norge.

While the electricity subsidy in March last year accounted for an average of NOK 730 on the electricity bill for people in southern Norway, the sum was just under NOK 70 in March this year.

In Central Norway and Northern Norway, electricity prices are generally lower, and for that reason less electricity subsidy is paid. In Central Norway, the electricity subsidy averaged NOK 40 in March, while in Northern Norway, an average of NOK 30 was deducted from the bill.

More expensive in the north

Northerners, however, have received higher electricity bills in March than in February. This year’s average price for March is the highest ever recorded in the price area for Northern Norway.

The reason is that there has been little rainfall, cold weather and that the degree of filling in northern Norwegian water reservoirs has been below normal for a long time, according to Renewable Norway.

– There is also little snow, so depending on the amount of precipitation, the situation may persist for a while longer, says the overview.

Despite the record, prices are still the lowest in Norway and the Nordic region.

Renewable Norway’s electricity price index calculates the actual electricity bill, including electricity subsidy, network rental and taxes. It also takes account of different average consumption in the different parts of the country.

Prices vary less

The development shows that price differences within Norway have reduced this spring.

– There have not been such small differences between southern and northern Norway since February 2021, according to Fornybar Norge, with reference to the price areas covering southern and northern Norway.

At the same time, people use less electricity because the weather is warmer. The month of March was warmer and wetter than normal, when you look at the country as a whole, according to the Meteorological Institute.

However, there were large variations. In Central Norway and Northern Norway it was an unusually dry March, but in Eastern Norway and Southern Norway it was very wet with twice as much rainfall as normal in several places.

In all five price ranges, the electricity consumption of an average household fell from February to March by between 7 and 13 per cent, according to figures from Elhub.

Average price of 68 øre in the south and east

The electricity prices were as follows in March in the various electricity zones:

* Eastern Norway (NO1): Average spot price of 68 øre/kWh. Slightly up from 67 øre k/Wh in February this year, but lower than 113 øre/kWh in March 2023. The electricity bill for the average household: NOK 2,070 following electricity subsidy.

* Sørlandet and Sørwestlandet (NO2): Average spot price of 68 øre/kWh. Slightly up from 67 øre/kWh in February this year, but lower than 113 øre/kWh in March 2023. Electricity bill for the average household: NOK 2,180 following electricity subsidy.

* Northern part of Western Norway and Central Norway (NO3): Average spot price of 61 øre/kWh. Increase from 50 øre/kWh in February this year, but slightly lower than 64 øre/kWh in March 2023. Electricity bill for the average household: NOK 2,030 following electricity subsidy.

* Northern Norway (NO4): Average spot price of 55 øre/kWh. Increase from 41 øre/kWh in February this year, and also up from the average price in March last year of 49 øre/kWh. Electricity bill for the average household: NOK 2,050 following electricity subsidy.

* Central part of Western Norway (NO5): Average spot price of 69 øre/kWh. Slight increase from 68 øre/kWh in February this year, but lower than the average price of 113 øre/kWh in March 2023. Electricity bill for the average household: NOK 2,120 following electricity subsidy.