– Unfortunately, I don’t think it will be as mild as in October later this winter. Powerful wind production and almost historically mild weather for the time of year is a combination that gives a weak price, says Olav Johan Botnen, senior advisor at Volue Insight to news. Soft rainfall, a fall in European gas prices and high temperatures have led to electricity prices being lower than they have been for a long time. In October, the spot price averaged NOK 1.32 in Oslo, according to figures from the power exchange Nord Pool. By comparison, it was NOK 3.51 in August and NOK 3.55 in September. Nevertheless, there is no reason to dismiss the electricity price crisis, according to power analysts. Expect short-term effect Analyst Tor Reier Lilleholt at the same company, says the prices on long-term power contracts indicate that electricity will cost approximately the same as now in a week’s time. After that, the market expects a considerable price increase until the New Year. – In January and February, the market expects the price to be between NOK 3.5 and 4, he tells NTB. He also points out that gas has become cheaper in Europe recently, because high temperatures have led to lower electricity consumption. If the temperatures become more normal, Lilleholt believes that the gas price and thus also the electricity price will quickly rise to approximately the same level as was predicted before the reservoir filling increased. Analysts predict higher electricity prices later this winter. Photo: Ole Berg-Rusten / NTB It can be different Future electricity prices are still difficult to estimate, he points out. – It depends on the weather. Those who get it right now can beat themselves, but they will probably be wrong next year, he says. Lilleholt’s company, Volue Insight, expects prices somewhat below what it costs to buy contracts in the future. – We are just under 3 kroner for January and February – in any case approximately 50 øre below the market, he says. He believes that the uncertain future prospects drive up the price of the long-term contracts. – There are, for example, many factories that do not tolerate prices of NOK 5-6. They buy now even if they think the price will be lower later, he says. NVE: – Good news Norway’s Directorate of Water Resources and Energy (NVE) believes that the power situation will be better than there has previously been reason to expect. – A warm and wet autumn was exactly what we needed this year. There is good news for magazine filling and the power situation this winter, said director Inga Nordberg in NVE’s licensing department in a press release on Wednesday. She points out that because the power producers have had low production recently, and saved on water, it will take time before reservoir filling is weakened. Last week magazine filling in southern Norway increased by 1.9 percentage points, and in the last five weeks the increase has been 14 percentage points. NVE writes that Norway has rarely experienced such a sharp increase in magazine filling as we saw in October.
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Analysts think the electricity price will soon skyrocket – news Sørlandet – Local news, TV and radio
