– Here are our ovens. Heavy ovens! Chairman Morten Hals of Baker Hansen shows around the production premises in Østerås, just outside Oslo. Here, seven large baking ovens bake thousands of breads and cakes every day. The ovens use one gigawatt-hour of electricity a year – this is roughly equivalent to the annual consumption of 50 homes. – Electricity prices started to run wild last year. It was very expensive at times, says Hals. – We had no choice but to tie the electricity price when we got that opportunity. 90 øre is still very high for us, but then we have security and predictability, explains Morten Hals. Photo: Peder Martin Bergholt / news 90 øre per kilowatt hour Altogether, the entire bakery and outlets use four gigawatt hours of electricity a year. In 2022, the electricity bill ended up at a record high NOK 8 million. Then the bakery chain decided to take action and tie the electricity price to 90 øre per kilowatt hour. – In January and February it was profitable. This summer it was a disaster, because then the electricity was almost free. But that’s the way the game is. We have chosen safety over gambling when it comes to electricity, says Hals. And now it is also profitable. At certain hours, the price of electricity in southern Norway has exceeded NOK 4 per kilowatt hour in recent days. Between 6pm on Thursday afternoon, one kilowatt hour of electricity costs NOK 4.29. – It is bad to say that we almost hope that the electricity prices will be at least 90 øre or more in order for us to make a profit on our agreement, says Hals and continues: – But overall, we want prices as low as possible. Predictable, low prices for production in Norway are very important. The ovens that bake bread use 1 gigawatt hour of electricity a year. Photo: Peder Martin Bergholt / news The companies must decide for themselves Last year electricity prices were at a record high. The fixed-price agreements were launched in December to give businesses predictable electricity prices. Industry Minister Jan Christian Vestre (Ap) believes that companies should think through whether fixed price agreements can be good. – Ultimately, they have to make the decision themselves. I have great confidence in Norwegian business leaders, says Industry Minister Jan Christian Vestre (Ap). Photo: Eskil Wie Furunes – Ultimately, they have to make the decision themselves. I have great confidence in Norwegian business leaders. – But what do you say to companies who might come and complain about high electricity prices this winter? – In any case, I would encourage all companies to familiarize themselves with what the fixed price agreements entail. I would also encourage the companies to check the fixed prices with several players, he replies.
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Sky-high electricity price – but Baker Hansen only pays 90 øre – news Norway – Overview of news from different parts of the country
