In the new scheme, the support will be calculated based on the hourly average of the prices instead of the monthly average. This may mean little to the consumer, according to senior adviser Thomas Iversen at the Consumer Council. Nevertheless, the scheme can help to even out prices. – The support will be more “fair”, in that the highest price peaks hour by hour will be equalized with the support, says Iversen to news. This is the change The new scheme comes after the government received a lot of criticism last year for its response to the high electricity prices. Previously, they calculated the electricity subsidy based on the monthly average for the electricity price in the area you live in. Now it is calculated hour by hour based on the spot price – the ongoing and changing price. The government has changed the electricity subsidy a number of times since it was introduced in December 2021. The principle of covering 90 per cent of the electricity price above 70 øre per kilowatt hour kWh remains the same. – Calculating the electricity subsidy for each hour means that you get electricity subsidy for what the electricity actually costs for the hour you use it, says Prime Minister Jonas Gahr Støre (Ap). EXPENSIVE AGREEMENTS: Thomas Iversen of the Consumer Council advises consumers against signing up for unnecessarily expensive agreements. Photo: Emma-Marie B. Whittaker The most expensive electricity contract Although electricity prices have changed, Iversen believes it is still important to sign up for the right electricity contract. He sees that several people have agreements where the electricity company sets the price once a month. These should be avoided, according to Iversen. – They are the most expensive agreements available on the market. If you have such an agreement, it is really just a tip, and it is to change, he says, and points to the Consumer Council’s website. The weather makes electricity cheaper for some The recent rainfall has had an impact on electricity prices. Senior analyst Benjamin Thomassen in Volue Insight believes the rainfall is positive for electricity prices. Nevertheless, there are large price differences, based on where in the country you live. While the rainfall has ravaged Eastern and Western Norway, it is Southern Norway that benefits the least from the weather conditions. The reason is that it has rained much more in the east and west recently. – For example on Friday, it was ten times as expensive to live in Southern Norway as in Oslo. But this winter the prices will be much more similar, says Thomassen. PROFIT: In August, electricity prices were in the red, and several people profited from the low electricity prices. Photo: Tom Nicolai Kolstad / news This year’s winter will also be far better for the wallet compared to previous years, according to the analyst. – You have Europe as a joker, you have the wars and Ukraine as a joker, in addition to the development of both temperature and precipitation throughout the winter, says Thomassen. – But in our analysis, it looks much better this winter compared to the previous winter. Recommend spot price agreement The price you pay for your electricity changes all the time. And the electricity price becomes more expensive the more we use. Whether it is smartest to choose a fixed price per month, or to stick to a current price, i.e. a spot price agreement, varies. In most cases, the latter is the best for most people, believes Benjamin Thomassen. Senior analyst Benjamin Thomassen at Volue Insight. Photo: Private – I myself and those I know now have an agreement with a running price. Then we have control over the price day by day, and we know what we are going to pay when we install the heating cable, hot tub, or whatever we need. – The best thing is to use little electricity. Then you get the lowest possible electricity bill. Regret fixed contract It was not long ago that electricity prices were high. In order to ensure security, there were several who undertook to pay a fixed price for the electricity. But at the start of August, the average daily price for electricity was negative in all five Norwegian price areas. This meant that some people made money from using electricity, while others lost money from it. One of those who secured a fixed price agreement was butcher Jens Eide in Lillesand in Southern Norway. He felt cheated after the electricity crisis was considered over. In July, the average price was 68 øre kWh, while he is bound to pay NOK 2.04 per kWh for the rest of the year. UNFAIR: The butcher Jens Eide felt cheated after committing to a fixed electricity price, as the prices became lower. Photo: Anne Wirsching / news Although the butcher felt cheated, senior analyst Benjamin Thomassen believes that the decision may have been wise in the long run. – It is easy to have hindsight. You couldn’t know that the weather would turn, that it would get wet, says Thomassen. – If prices are high, he will get more support. If the prices are low, he will be stuck, and he will not get any help. Because the support only kicks in when the price is over 70 øre plus VAT, he says.
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This means the new power scheme for you – news Norway – Overview of news from different parts of the country
