The power crisis hit many Norwegian companies hard. The government has promised that fixed-price contracts could give Norwegian companies control over galloping electricity bills. So far, sales seem to be fairly modest. Kolbjørn Hembre, CEO of the electricity company Entelios Photo: Entelios – We have not sold any contracts so far, says CEO Kolbjørn Hembre of Entelios. Entelios has electricity agreements with several Norwegian municipalities, the health authorities and large companies such as Telenor. On their website, they write that they are Norway’s largest electricity supplier for the business market. Entelios does not produce the power itself, but resells electricity it buys from the power companies. Now they advise the companies to wait to sign the fixed price agreements they offer themselves. At the moment, a three-year contract costs 108.50 øre in Eastern and Western Norway (NO1 and NO5). And the agreements then only start in April. news has not seen agreements from other electricity companies that are significantly cheaper. – We are very uncertain about the price level and advise customers to wait. Futures prices in the market are falling due to a mild winter in Europe. It is not in our interest to sell expensive contracts to customers, says Hembre. Another power seller, Fjordkraft, has sold a little more. 39 contracts. They have sent out a new price list for electricity from Statkraft. A 3-year contract costs just over NOK 1.20 in southern Norway. Rød support Rødt believes that it should ring some bells when a large electricity company in practice does not sell what was supposed to be the government’s most important measure against the electricity price crisis. Sofie Marhaug, parliamentary representative for Rødt Photo: Tony Ågotnes / news – The fixed price regime is still not good enough, says energy policy spokesperson for Rødt Sofie Marhaug. She points out that the prices companies have to pay for electricity are far above what they have paid in the past. – It goes without saying that many companies are facing very uncertain times then, says Marhaug. Red will regulate the electricity market and have a maximum price of 35 øre. Great interest Business Minister Jan Christian Vestre (Ap) has several times called on the leading power companies Statkraft to offer reasonable fixed price agreements to Norwegian companies. Prices have fallen towards Christmas. He believes prices will continue to fall. Minister of Industry, Jan Christian Vestre (Ap) Photo: Peder Bergholt / news – I hear from several electricity suppliers that they have sold fixed price agreements both before and after Christmas and that there is great interest from the business world. It is natural that electricity suppliers with the best terms have the most demand, and that suppliers who charge high prices experience less demand from potential customers, says Vestre. And the prices of the contracts offered now are clearly lower than the first contracts that came on the market. – We see that competition is beginning to arise, as the government has worked to facilitate. I have seen seven-year contracts at 79 øre, five-year contracts at 84 øre, says Vestre. But his own power company does not attribute the price drop to internal competition in Norway. Statkraft points out that future prices for Nordic power have fallen. – We set market-based prices, within the framework of competition legislation and market regulation, says press spokesman for Statkraft Lars Martin Günther. He says Statkraft has therefore reduced the fixed prices in line with the expectation of electricity prices going forward. Don’t be psychic – Of course I can’t predict what the market will look like in a week, a month or a year. Neither can anyone else. The whole point of fixed price agreements is precisely the opportunity to hedge against such uncertainty, writes Industry Minister Jan Christian Vestre. news has asked the Minister of Business and Industry if he wants to put pressure on Statkraft to offer good fixed price agreements. Vestre has not answered that question. Yo-yo prices make fixed contracts more expensive Many companies have complained that the contracts oblige them to buy the same amount of electricity day and night. This means that the night electricity they do not use is sold. If it is sold cheaper than what the company has paid, the company gets the bill. That problem has not diminished, says Entelios CEO Kolbjørn Hembre. – The challenge of companies having to buy fixed volumes is at least as great as before because we see violent fluctuations in prices throughout the day, week and months. The agreement we are offering is for the time being with a flat annual profile, he says. Statkraft has already warned that agreements where companies can use more electricity during the day than at night will be expensive. – But won’t they make money if the spot price is high at night? – Why should it be? The price curve is governed by supply and demand and at night demand is low, says Hembre.
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Haven’t sold a single power contract – news Norway – Overview of news from different parts of the country
