Analysts believe the price will continue up in January if the weather forecasts for “abnormal cold” are correct.
The electricity price on the second day of Christmas will be NOK 1.87 in pure power price in southern and western Norway, according to recent figures from the electricity exchange Nord Pool, which determines the price one day in advance. The most expensive hour for consumers in this region is NOK 2.18 between 5 pm and 6 pm.
If grid rent and fees are included, it will correspond to a price of NOK 2.9 on the electricity bill, before surcharges to the electricity companies.
For northern and central Norway, the price of electricity rises from 32 øre to 50 øre. For these customers, the most expensive hour will be between 10 pm and 11 pm, with a price of 56 øre.
The daily price for electricity is 2.0 kroner for customers in southern and western Norway on the first day of Christmas. The most expensive hour for these customers today is between 6 pm and 7 pm, with a price of 2.38 øre for the clean electricity.
This autumn, the price of electricity has set several records, most recently on Tuesday when electricity in southern Norway cost NOK 3.95 on average without grid rent and fees.
This costs frying the ribs
Price increase in January
Tor Reier Lilleholt, head of analysis at Volue Insight, says there will still be a strained market in January.
– There are already weather forecasts that say that it looks abnormally cold until well into January. The temperature and the wind are most important, what the precipitation is is not important, because it settles like snow in the high mountains where there is power production.
Already now there is little water in the reservoirs in southern Norway. If the weather forecasts are correct and it remains cold, prices will continue to rise.
– We are already in a strained situation. In January, there is an expectation in the market of more than four kroner per kilowatt hour in Germany, while we have an average for the Nordic region of about two kroner. Southern Norway will probably be another half a kroner above that in pure power prices, he says, and adds:
– With these weather forecasts, it can go even higher, because you do not meet resistance until you meet prices in Europe. You can not stop exports to Europe until prices are in line, says Lilleholt.
Think north gets stable price
He emphasizes that everything depends on temperature. If there is a mild weather situation, prices go down. In southern Norway, however, there is so little water in the reservoirs until the spring that he does not think the price can fall significantly in this region.
For Northern Norway, the situation is completely different. As long as the consumer does not increase sharply, and the temperature drops sharply, he estimates that the price of electricity will be around 50 øre through January.