With an average price of 34 øre per kilowatt hour, Northern Norway was the only area in Northern Europe where electricity prices actually increased this year.
Electricity in northern Norway had the highest price increase in northern Europe in 2023, shows an overview carried out by Europower. Photo: Annika Byrde / NTBPublished: Published:
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While all the other price areas in Norway and Northern Europe had a reduction in electricity prices from the record year 2022, the Nordics received an average price increase of 36 percent this year, shows Europowers overview of electricity prices in Norway for 2023.
Electricity customers in the price range NO4 do not pay value added tax, and the average price is much lower than the price ranges in southern Norway. But while electricity prices in Eastern Norway fell by 65 per cent from 2022 to this year, it went the opposite way in the north.
In Eastern Norway, electricity customers paid an average of 76 øre per kilowatt hour throughout the year, a decrease of 118 øre from the previous year. The price is roughly the same as in 2021, but approximately twice as high as in 2019, which is the last year that is considered a fairly normal year for electricity prices.
Second most expensive year
Prices in Bergen, price area NO5, were at the same level as Eastern Norway. It was the second most expensive year ever for this part of Western Norway.
For NO2, South and South-West Norway, the price was, on the other hand, higher and stood at 90 øre on average. For three out of four hours, the electricity price was above 70 øre per kilowatt hour, which was the limit for receiving electricity support from the state.
– The price difference to the rest of southern Norway is greater than ever, writes Europower
The year it was so steep
For Central Norway, which is power area NO3, the average price this year was 44 øre per kilowatt hour. The price rose by one penny compared to 2022, but as electricity is traded in euros, it still fell slightly. Trønder has not had such expensive electricity since the crisis year 2010, when the price was 46.5 øre for a kilowatt hour.
All the electricity regions have many cases where the electricity price has been negative throughout the year. This has typically happened when power consumption has been low and large amounts of unregulated power, such as wind or solar energy, have entered the grid.
2022 was the year when electricity prices blew the roof of what was thought possible. An abrupt and dramatic cut in the import of Russian gas to Europe, combined with war in Ukraine, led to an extensive energy crisis and price jumps for gas and thus electricity.
As Norway with its 14 foreign cables is part of the European power cooperation, the sky-high prices spread to the Norwegian market, mostly in the three southern price areas NO1 (Eastern Norway) and NO5 (Bergen), but perhaps especially in NO2 (Southern and Southwestern Norway ) where several of the exchange cables are located.
2023-12-30 14:32:43
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