New figures from Statistics Norway show that Norwegians paid more for online rent than for electricity in the third quarter. On average, Norwegian households paid 40.1 øre per kilowatt hour in network rent – compared to 35.3 øre per kilowatt hour in the electricity price. In addition, there are 37.0 øre per kilowatt hour in fees. The explanation is a combination of favorable weather conditions, lower electricity prices and higher online rent. – Solid hydropower production. These are the main reasons why spot prices have been so low, says Rystad Energy’s vice president, Fabian Skarboe Rønningen. news has been in contact with several power analysts who say that the figure from the third quarter may herald a new trend where the spot price makes up the smallest part of the electricity bill. – This can be a foretaste of what will apply in the coming year, says Rønningen. – People are in for a net rent shock – There is good reason to believe that this distribution is symptomatic of future electricity bills, says Anders Lie Brenna, who is editor of the trade journal EnergiWatch. He insists that the electricity price “is notoriously difficult to predict”. – The only thing we know with great certainty is that the electricity price will vary greatly in the future. We will have many hours with very low electricity prices – also negative, and many hours with high electricity prices. In return, it is certain that online rental will be more expensive. – People are in for an online rental shock, says Sofie Marhaug in Raudt. NVE announced earlier this autumn that network rent for “ordinary customers” will increase by around 25 percent until 2030. The reasoning is that the network must be strengthened to handle more “traffic” and more variable production from solar and wind power. In total, NVE believes that Norwegian consumption will increase by 22 TWh until 2030. – Increased investment in the power grid is expected in the coming years. These investments have to be paid for, and this is done through net rent, says watercourses and energy director Kjetil Lund. Here together with Prime Minister Jonas Gahr Støre. Photo: Snorre Tønset / Snorre Tønset – The most beautiful word in the dictionary In the Economic Outlook report, which was published on Friday, the European Commission announces that it expects high energy prices right up until 2026. At the same time, there is tension in the LNG market and the trade currents when the “customs king” Donald Trump occupies the White House in the New Year. – With the exception of “love” and “religion”, customs is the most beautiful word in the dictionary, the American president has stated. The gas price is important because it also determines the price of electricity in the EU. In Germany, the futures contracts are currently at more than NOK 1 per kilowatt hour – both for 2025 and 2026. – There is no guarantee that it will be the actual price level, but this is what the market expects, says Rønningen. – And it usually hits well. Development in online rental per region. Graphic: NVE The government will equalize the regional differences The increase in network rental for Norwegian electricity customers will depend on the interest rate level and the bottleneck income of Statnett. In addition, the costs will vary from region to region. – Because there is a difference in how many people will be on the splicing team, says Knut Lockert, day-to-day manager at Distriktsenergi. In the Hurdalsplattforma, the government has announced that it will equalize the regional price differences, but so far without visible results. – The Hurdal lift is still in the drawer, says Lockert. – This has obviously passed many houses by. Otherwise, far more people had protested. Leif Dalen / news Tor Reier Lilleholt, power analyst I am surprised that online leasing has not been more of a focus in recent years. Because it has had an underlying large growth, while there has been a lot of focus on the power price. When you see what the power price has been in recent months in large parts of the country, it is clear that online rental will gain greater dominance in the final bill itself. Sunniva Linjord / news Elisabeth Sæther, State Secretary in the Ministry of Petroleum and Energy First of all, I am very happy that electricity prices have fallen. The electricity price in southern Norway is this year 75% lower than the peak year of 2022. How much online rent increases varies around the country. But generally speaking, it increases somewhat for most people. Both because the network is old and needs to be replaced, and because we have companies that need more electricity to secure jobs and create value for Norway. Ole Berg-Rusten / NTB Sofie Marhaug, RaudtFolk has an online rental shock in store. We are calling for measures to reduce online rent. Firstly, we believe that it should not be possible to take a surplus on network rental from either Statnett or the network company. And secondly, we have to prioritize more strictly which networks are to be developed. We are against building new Denmark cables., and sending the bill to the electricity customers. Caroline Roka / Energi Norge Ulf Møller, industrial policy advisor at Fornybar Noreg Electricity prices usually increase throughout the winter in line with increasing electricity consumption. In the fourth quarter, the electricity price will therefore probably make up a larger part of the electricity bill than the network rent. A general rule of thumb is that the electricity bill consists of one third electricity price, one third online rent and one third taxes and fees. For certain months and quarters, however, the picture may look different. Vista Åsmund Sunde Valseth, partner in Vista Analysis New technology makes it possible to shift consumption without it costing too much. For example through smart pressure heaters or smart electric car charging. Then we can avoid unnecessary network investments and get lower network rent. But for it to be profitable for people to move their consumption, grid rent must be linked to the capacity of the electricity grid to a greater extent. Rystad Energy Fabian Skarboe Rønningen, Vice President at Rystad Energy When the power mix gets a larger portion of variable power, you typically have to scale up the grid, which happens in many European countries, including Norway – even though Norway is not currently building much new power. An insane amount of solar and wind will be built in Europe in the coming years, also in our neighboring countries, something that will continue to be a driver for more grids, which in turn typically leads to higher grid rents. Fredrik Kveen Knut Lockert, day-to-day manager of DistriktsenergiWe expect an increase in net rent of approx. 25% until 2030. It is upgrades of the new network and maintenance of the old that in sum give this increased cost. What is worth noting is that the increase is very different depending on where we live in Norway because online rent varies in size between approx. 29 øre per KWH at 76 øre, i.e. a difference of closer to 50 øre. A new survey carried out by Respons Analyze for Fremtind shows that Norwegians are prepared for several electricity-saving measures in the future. 35 percent consider turning down the heat in the house as a cost-saving measure. At the same time, 7 percent of Norwegians are considering turning down or turning off the heat in the cabin. – Explosive cooling and power saving are a bad combination, says Therese Hofstad-Nielsen at the insurance company Fremtind. – Always remember to have sufficient heating in rooms with water pipes. Preferably above 10 degrees. Internet rental shock, says Rødt and wants to cut dividends from internet rental companies and drop new Danmarkskabel. – We would like to keep the network rent down, but must first secure jobs and expand the old power grid, says the Labor Party. Published 19.11.2024, at 19.13 Updated 19.11.2024, at 19.27
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Online rental can be more expensive than electricity purchase – news Vestland
