The decline in energy prices, which the inhabitants of, for example, Denmark may have recently felt, is due to its large overproduction. Unfortunately, this does not apply to the Norwegian state.
While the noticeable decline in energy prices is pleasing to many countries, Norway is struggling with their rise. As you can see, even a favorable summer and a large overproduction of electricity did not reduce prices, on the contrary, their high level is record-breaking. Recently, we could witness very strong winds that occurred over Scandinavia. This phenomenon has led to very large electricity production by numerous wind farms in Denmark as well as in Germany.
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Unfair distribution of energy prices
Due to large overproduction electricity on the Danish market saw not only a drop in prices for energy, but their level reached a negative result. This is not surprising because excess energy must be used. On the first day of the new year, the average electricity price in Denmark was -3,9 øre per kWh. A moment later, a surprising situation occurred because the price of electricity dropped to an extremely low level of minus 48,3 øre per kWh. Such prices indicate only one thing: Denmark is selling energy to neighboring countries at a great financial loss. Of course, this also applies to the Norwegian state. In Sweden and Finland, prices also dropped significantly, which cannot be said about Norway. Unfortunately, the price for electricity has not changed here and still fluctuates around 50 øre per kWh. This price also includes VAT, taxes and shipping fees.
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Why is the price of energy still the same in Norway?
Each of us is probably asking ourselves this question now. This is quite unfair, but data from Statnett, the state-owned energy network operator, explain the whole matter. During the period low prices in Norway the production of hydroelectric power plants is limited. Thanks to this, there is still a high demand for electricity in the country, there is no overproduction of energy, and therefore prices remain at the same high level.
