Electricity Crisis at the Door

Rising electricity prices are on top of the list of Norwegians' fear concerning their personal finances in 2011. Record cold temperatures in December and an early winter start have increased the consumption of electricity in the last quarter of 2010 compared to last year. Combined with rising energy prices, it could create a significant additional expense on electricity bills in January 2011. Nordea Bank commented that it is understandable that the main private economic concern Norwegians have for 2011 is the electricity and heating costs as the numbers indicates. For the last quarter, an average household had to pay at least 1500 NOK more than last year.

Special consultant Are Tomasgard wrote that the situation in the power supply of Norway is strained. "Low reservoir levels result in high electricity prices. Little snow in the mountains can make it more difficult to fill up the reservoir again, even with normal rainfall during the summer", said Tomasgard in the article published on Tomasgard also reported that Norwegian households and companies could experience an electricity crisis due to a fall of water levels in the reservoirs combined with the continual exports of electricity to other countries.

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