What Affects the Dagens Strømpris in Norway & How to Lower Power Bills

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Have you ever stopped to wonder what it is that affects the electricity prices in Norway? Or, have you just been looking at the bills, wondering how come they change month to month, but not really knowing what to do about it and how to actually control those changes yourself? You would definitely love to be able to lower the power bills, but chances are you’re not sure how to do it, given that you don’t really know what it is that’s driving the prices up.

Here is a nice article that may shed some light on some of the factors that are increasing the prices: https://www.theglobeandmail.com/world/article-europe-electricity-prices-norway/

So, you don’t know what it is that is affecting the prices. Well, then, it’s time to get to the bottom of that. By understanding the specific factors that play a role here, you will get a much better idea on why your bill looks the way it looks. Not only that, but you will also gain more control over the bill, being able to make some changes that could lead to it being lowered. And, in the end, that is precisely what you want, isn’t it?

What Affects the Current Electricity Price in Norway?

Since I am sure that the above is precisely what you want, let us now proceed towards answering those important questions for you. Starting with the question of what it is that affects the current electricity prices in Norway in the first place. As explained, it is through understanding those factors that you will automatically understand your bills much better and thus be able to take the right measures towards lowering them. So, let us explore the factors that affect the energy costs.

  • The Season

One of the most obvious factors is the actual season, that is, the time of the year. This has to do with the supply and the demand, which we will talk in a bit more details later on. For now, though, what you should know is that the prices tend to be lower in the summer, and higher in the winter. After all, the winter is the time of year when most people rely on certain heating devices to keep themselves warm and comfortable in their own homes, so it is no wonder that the prices are higher, given that the consumption is higher as well.

On the other hand, the summers are amazing when it comes to energy bills, because the consumption is lower. And, when the consumption is lower, the prices tend to go down as well. Of course, certain energy saving measures can help you during the winter as well, such as not heating the rooms you don’t usually use, keeping the doors closed, properly insulating your home and similar things. Here is a tips for charging your vehicle that could also lead to some savings.

  • The Climate

As you most likely know by now, hydropower is the primary source of electricity in Norway. This further means that the climate will significantly affect the prices, given that it will affect the amount of production. For instance, if the water level in the reservoirs is low, and the demand is high, there is absolutely no doubt that the prices will go up. When there is enough rainfall, and wind for that matter, because Norway relies in part on wind power as well, chances are that the production will increase, which will automatically result in lower prices.

In short, the overall weather conditions will affect the costs. Although we all love warm weather, especially during the summer, the truth is that dry summers can actually negatively affect the prices of electricity. So, the next time rain starts falling in the middle of the summer, don’t be frustrated about it. Instead, remember that this will reflect positively on your power bill.

  • Supply and Demand

Above I’ve mentioned that the supply and the demand have a significant effect on the electricity prices. In fact, this is the crucial factor that affects those costs. The demand changes during the day, which is why the prices fluctuate. Thus, electricity is usually cheapest during the night, when the demand is low, and it is most expensive in the morning and after office hours, when the demand increases.

Furthermore, if the production is low due to unfavorable weather conditions, the country will have to import electricity, which will also have an impact on the costs. Norway relies on both production and importing, so there are bound to be some fluctuations here during the year. The supply and the demand have the biggest impact on those bills, meaning that you sometimes won’t be able to do anything but accept the increases and wait things out.

  • Your Current Region

The production capacity and the demand for electricity vary in different parts of the country. This is why Norway is actually divided into 5 current regions, that all have different production capacity, different demands, as well as different transmission capacity. Usually, the prices are lowest in the Northern Norway region, while they are highest in the South-West Norway and Eastern Norway regions. So, the overall costs also depend on where you live in the country.

  • The International Electricity Market

As I’ve explained previously, the country relies on import in part. Thus, the international electricity market will definitely affect the prices. In fact, 19 European countries buy and sell power on the Nord Pool power exchange, which undoubtedly has an impact on the overall costs. Coal and gas prices in Europe are bound to affect energy costs in Norway, as those are basically raw materials used for the production of electricity.

  • Your Provider

One last thing. If you are not happy with your bills and you suspect it has nothing to do with the factors mentioned above, then you should consider switching providers. To put things simply, different electricity providers will have different prices on the market, even though they buy the power at the same spot price at the exchange. Some surcharges have to be added for the purposes of delivering the power to the end customers, and that is completely normal. But, you should be aware of this, so as to ultimately understand if the provider could be significantly affecting your bills in a negative way.

How to Lower Those Bills?

You’ve taken the time to understand what affects the dagens strømpris in Norway, and now you have a better idea about why your bills look the way they look. But, this has raised a bigger question for you. Basically, you are wondering how to actually lower those bills. Is there anything you can do towards achieving that goal, or should you just make peace with the amount of money you are paying for power, without trying to do anything about it? Well, the good news is that there are certainly some things you can do to affect those bills and lower the amount you are paying, and we will talk about them below.

  • Be More Mindful of Your Consumption

First and foremost, you should try and be more mindful of your consumption. This can go a long way in helping you achieve this goal and saving money on energy. Given that the energy prices fluctuate during the day, you should try and plan your consumption so as to use certain appliances during those periods of the day when the prices are at their lowest points. The nights are perfect in this regard, but so are some afternoon periods, usually between 12pm and 15pm, when the demand is quite low. When you make even small changes to your consumption, you are bound to see some big changes on your energy bills and thus be able to save some money in the process.

  • Take Energy Efficiency Measures

Furthermore, there are some energy efficiency measures you can take. Starting with the most simple actions, such as turning the lights off when you leave the room, as well as always unplugging any devices you are not using, instead of leaving them plugged in. Then, there is also the fact that you can buy energy-efficient appliances, as well as invest in proper insulation so as to keep the heat in the room for longer periods of time, instead of having it escape and then needing to turn on your heating devices once again. So, making small behavioral changes, as well as investing in the right appliances, can go a long way in helping you save money on electricity.

  • Change Your Provider

One last thing. If you remember those factors that I have been talking about above, then you know already that the provider has a huge impact on the amount of money you are paying for electricity. Thus, if you have tried some of those tips and tricks for lowering the bills, and if nothing worked, it may be time for you to start thinking about switching to a different provider. Carefully research your options and take time to select the perfect provider, so as to be happy with the new prices.

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