Electricity prices have always been known for changing day after day, and even hour after hour. Nobody has, however, paid that much attention to it, given that the price changes weren’t that big, and people usually didn’t even feel them. At one point, though, things have started getting worse and we have all experienced spikes in electricity prices, which made us curious, among other things. Curious about how the pricing actually works and what affects the strømpriser in Norge. Here are your bills explained.
So, you’ve become curious about learning more on the electricity situation in Norway and about the factors that actual affect the prices. You probably want to do the learning so as to figure out if there is anything you can do to actually lower your bills. While you understand that most things are not in your power and that you’re not the one dictating the prices, you also know that you are the one consuming the energy, and thus affecting the overall bill as well. Meaning, you want to check if there are absolutely any steps you could take so as to make the situation better.
Before we get talking to the part you’re playing in this whole story, it is certainly important for you, and for everyone, to finally understand what it is that actually affects strømpriser in Norge, objectively. That way, you’ll know exactly what’s increasing those bills, and you’ll realize exactly how much is in your power. And, of course, you’ll also learn to make peace with those facts that can’t be changed, upon realizing that the increases are there for a good reason and that they simply had to happen. So, let us first talk about those factors affecting the prices, and then proceed to checking what you can do about it.
Table of Contents
What Affects the Strømpriser I Norge?
As it’s been cleared up, talking about the factors that affect the strømpriser in Norway should be the first topic for us to cover. As you may know already, electricity is exchanged on the Nord Pole, the Nordic power exchange. Power companies sell them to electricity suppliers, and then those suppliers deliver them to the end customers. Apart from the Nordic countries, a lot of Northern European countries trade on the Nord Pole as well.
Electricity is not exactly suitable for being stored for a long time, meaning that it has to be sold soon after being produced. The price under which it will be sold tends to be different every day. Basically, the exchange receives necessary info from the electricity suppliers and producers about how much power is to be transported the next day to which areas. Then, the Nord Pole sets and publishes the price for the following day, usually at 1 p.m.
Now, while you get how the pricing process works, you may still be confused about the factors that affect the cost of this commodity. So, here’s what we will do next. I’ll list those most important factors that affect the price of electricity in Norway, thus allowing you to get a clearer idea as to why the number on your bill may be changing so often. After that, of course, we’ll tell you if there’s anything oyu can do to actually decrease the bills.
Supply and Demand
Supply and demand are those two concepts that dictate the costs of any commodity and any product on the market. Things are not any different when power is in question. Higher demands lead to higher prices, which is precisely why the price of electricity changes hour after hour. The demand is highest between 7 a.m. and 10 a.m., as well as between 17 p.m. and 8 p.m.
That’s because consumption is at its highest levels during these periods, which automatically means that the price will increase as well. On the other hand, you get cheapest electricity between 2 a.m. and 5 a.m. The demand is rather low in that period, which is also why people with electric cars are encouraged to charge them during that period.
The Season
This may come as a bit of a surprise, but when you think about it carefully for a moment, you’ll realize it’s perfectly logical. The season affects the prices and, as explained at https://bestestrøm.no/dagens-strømpris/, the strømpriser will increase during fall and winter. That’s also because the demand is higher during those colder months.
The Weather Conditions
The weather conditions further impact the cost of electricity, but not only because you’ll use more power when it’s cold. You see, Norway mostly uses hydropower to produce electricity, and if the demand for power is high and the water levels are low in power reservoirs, meaning supply could be low, the prices are also bound to go up. Sufficient rainfall, as well as snowmelt, will fill up the reservoirs and thus decrease the prices.
The International Electricity Market
We’ve made it clear that Norway is actually a part of a larger power market and that other European countries exchange electricity on the Nord Pole as well. This simply means that the prices in those other countries will have an impact on the prices in Norway as well. As much as 85% of Europe’s electricity is traded on the Nord Pole.
Your Region
We can’t fail to mention that the region you’re located in will further impact your bills. There are 5 different electricity regions in Norway, and both the production capacity and the consumption will vary in all of those. Plus, the regions all have different transmission capacity, which will further impact the price. In short, your bills will vary depending on where you live, and the prices are usually highest in the south of the country and lowest in the north.
Your Power Supplier
The electricity supplier you’ll choose will also have a say in the prices you’ll get. Although they buy the power for their consumers at the same spot price on the exchange, suppliers have the right to set their own prices. They can add certain surcharges that will increase your bill, which is why checking regularly if the agreement you have with the supplier you’ve chosen is favorable or not is quite important.
What Can You Do About It?
So, you now get which factors impact the costs of electricity, meaning the next thing you want to learn is whether there’s anything you can do about it. Well, there are a few things. For starters, you could introduce some power saving measures to your household so as to get a lower bill at the end of the month, but I’m guessing you already knew that. If possible, you could also change regions, but nobody will actually build their life around electricity prices, so this is a long shot.
The most significant thing you can do is, of course, choose the right power supplier, because it’s perfectly clear that they have a huge say in the costs. So, if you suspect that the current agreement you have isn’t that favorable and that you could find a better one, feel free to do just that. Shop around and find the best supplier that will offer you the most reasonable option and thus lead to a reduction in your bills.
