Anyone who has lived in Norway for a while can attest that electricity used to be quite cheap until recent times. The current surge in power price is due to so many different factors. While this change is not welcomed, consumers have to figure out means to adapt to it.
One way of reducing how much you spend on electricity is reducing how much energy you consume. But what about cases where this is not achievable? This is what has made the search for cheap electricity a common thing in Norway.
If keeping up with your electricity bill is becoming a struggle for you, then you are right where you need to be. This article is written to help you make the best out of this situation. Here, we will be discussing some tips to help you get cheap electricity deals.
However, it is important to understand the reason for this hike in price. While your concern is getting the best deal, it’s also necessary that you understand the reason behind the price rise. This will not remove the additional cost, but it will likely reduce your frustration about the new normal.
Therefore, in this article, we will also look at some of the reasons why electricity is now this expensive in Norway. These reasons can also help you figure out the best means to minimize your energy usage to make the most out of the money you spend. Now that we’ve said all that, let’s get right into it.
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Tips to Help You Get Cheaper Electricity Deals
If reducing your energy consumption is not an option or perhaps, it isn’t bringing the desired result, then getting a cheaper deal is the best way to go. However, when looking for cheap power costs, the cheapest one on paper may not necessarily be the cheapest. Sometimes, a company can make their offer so enticing on paper but at the end of the day, you end up spending more than you bargained for.
Knowing what to look out for when considering your electricity cost can significantly influence how much result you get. Below, we will look at some of the steps that you can take to achieve this. Combining the best deals with being energy efficient will help you spend way less on your power bill.
Talk to Your Current Electricity Company
If you feel like you can get a better deal from the current power company that you are using, then you need to talk to them about it. First, do your research to find out whether or not the company has other deals (other than the one you are currently using) that will favor you more. Once you have found this, speak to the company about it and find out what you have to do to make the switch.
If you cannot find any replacement plan through your research, then talk to the company directly about it. Find out the plans they have other than what you currently have. If you do not find a suitable deal with the current company, then it may be time to switch companies.
Shop Around (Compare Prices)
You can’t find the best deal without shopping around. This is the case with anything and it isn’t any different when it comes to getting cheap electricity or billig strøm as they say in Norway. So, contact as many companies as possible and learn what they offer.
You can also use any comparison site to find different agreements from different companies around you. These sites can help you compare prices between companies based on peculiar factors like your location, your energy demand, and even the size of your home. This makes them a perfect place to compare prices without even contacting several power companies.
But remember that just because a deal looks good on paper does not mean it is the cheapest. Take your time to properly understand what you are offered. If possible, ask for a breakdown of the charges and be sure that you won’t end up paying more than you thought.
Consider Switching Contracts
There are three different types of power agreements in Norway: fixed-price, spot-price, and standard-variable contracts. Most companies offer all three different contracts. Let’s take a quick look at these different contracts individually for you to understand them better.
Fixed Contracts
As you can guess by the name, with this type of power contract, the consumer is charged a fixed amount per kWh for a specific period. The power company must provide the consumer power at this specified cost regardless of the current price of power. This means that whether the cost of power increases or decreases, you as the consumer will still pay the same amount you agreed upon signing the contract.
The power company will set the fixed cost based on their forecast of power prices. The way they do this guarantees that they’ll be able to cover the total cost of providing you (the consumer) electricity. You may feel cheated when you have to pay more money when the market price is lower than what you have to pay.
But remember that even if the market price is higher than what you pay, the company will still provide you power at the specific price. So, you can look at having a fixed contract as a premium for a stable price. While this option offers more peace of mind, it may be more expensive than the other options.
Spot-Price Contracts
With this type of contract, your power company will charge you according to the current price of electricity in the market. It means that your cost is determined by the hour. This could be beneficial or not depending on the time of the day or year.
Standard-Variable Contracts
The cost of power with these contracts can change based on certain changes or events in the market. However, the change isn’t as frequent as spot-price contracts. Before a company changes the price with this type of contract, they must inform the consumers 14 days before the change.
Now that you know the difference between the different contracts, the big question now is which should you go for? Well, it all depends on your power needs and your particular situation. For instance, if you are currently using a fixed contract but you have particular hours when you tend to use energy more, then you may reduce your electricity cost by switching to a spot-price agreement.
This is because when you do this, you can schedule activities that require more energy during hours when the price is lower. However, this would require you to pay attention to the market price fluctuations. But it would be more cost-efficient than using a fixed contract.
In the same way, fixed or variable contracts may be more cost-efficient than a spot-price contract sometimes. When you look at a fixed contract, it may likely look more expensive at first glance. However, it could end up being cheaper than a spot-price contract in the long run.
It’s also a good choice if you’d rather know for sure how much your monthly power bill will be. In the same way, it could be a great choice for certain periods when power prices tend to increase massively, like during winter when people need energy to keep their houses warm. When you take a fixed contract before the expected hike, you can save some money during this period. So, the best way to get a deal that will be cost-efficient for you is to tailor it to your needs.
Why Power is Expensive in Norway
There are so many factors contributing to the high costs of electricity in Norway. Knowing these different reasons may help you understand the costs of power better and how to make the best out of it. So, let’s look at two of these reasons below.
Electric Heating
The weather in Norway can be quite cold and houses rely on electricity to heat their homes during cold weather. This means that energy usage is much higher during these periods. The increase in demand in turn causes a hike in the cost of electricity.
Optimizing your power cost during this period can be simple. You can decide to switch to a fixed-price contract before the hike. Doing this will mean that even when the price goes up, you’ll still pay the amount specified in your contract.
Connections Between Germany and the UK
In 2021, Norway got two cables that connected Norway to Germany and the UK. A lot of people have since blamed the hike in electricity costs on these connections. To an extent, they are not wrong as the connections contribute about 10-25% to the increase.
The exact working of this is quite complicated and we won’t be able to give full details on it. But to keep the explanation short, these cables are used to export energy. So, when electricity becomes more expensive in Germany or the UK than it is in Norway, power will be exported from Norway to them. This would increase demand and cause an increase in the price of power in Norway.
Conclusion
Getting cheap electricity in Norway may prove difficult, especially with the recent increase in price. This, however, does not mean it’s impossible to reduce your electricity cost in Norway. One way of doing this is reducing your energy consumption but this is not always attainable.
This is why this article has discussed some tips that can help you out better. All you have to do is consider your needs and particular situation. Then, you can use these factors to decide on an electricity contract and deal that will be most cost-efficient for you.
