Electricity or power bills in Norway includes internet charges, government fees, charges for electricity consumption and other surcharges that may apply. This is the standard, no matter the type of electricity contract you have or the supplier you use.
In Norway, you do not choose the internet provider that you use because specific companies are assigned to specific regions which means that you use the company assigned to your region. So in essence, geographical location determines the internet service provider that you sign up with.
However, this is not the case with electricity as there is a proliferation of suppliers per region. This is actually good news for the consumer because you have the freedom to choose your electricity or strøm (in Norwegian) supplier. This proliferation of suppliers therefore creates stiff competition amongst them as they all seek to get a slice of the consumer pie.
One of the means that suppliers use to attract customers is reduced rates and prices. This therefore makes it easy for consumers to change suppliers as often as they want. In this article, we will share basic facts about electricity and tips on how to get affordable power.
Understanding Electricity Pricing in Norway
Due to the rising electricity demand, everyone is actively looking for ways to conserve energy and save costs. The need for cheap energy has become a crucial matter and occupies center stage in discussions about the sustainability and affordability of energy. This pursuit for cheap power cannot be successful unless consumers, first of all, understand energy pricing.
Many things affect the cost of electricity and they include generation, transmission, distribution, government fees, internet fees, and surcharges. Other factors include supply and demand, market forces and competition and government policies and regulations.
Electricity pricing in Norway is a direct result of the energy landscape of the country which shows a mix of unique factors that makes them different from other countries. The country relies so much on renewable sources of energy and has a well-developed infrastructure. That is why the country’s approach to pricing in this industry shows an environmental consciousness and commitment to sustainability with a high level of efficiency.
Most of the country’s electricity is generated from hydropower plants where they harness the force of flowing water to produce clean energy in abundance. This also contributes greatly to the stability and consistency of pricing. One of the major factors that affect electricity pricing is the prevalent adoption of spot market pricing.
Spot market pricing is the model in which the cost of power is determined per time (in real time) based on the forces of demand and supply. This models promotes transparency and helps consumers to adjust the way they use power and learn how to navigate the off peak periods to maximize and at the same time conserve energy.
In addition to this, the country’s commitment to environmental sustainability is shown in the wayit encourages people to lean more toward energy sources that are environmentally friendly. One deterrent Norway employs is by adding the external cost of carbon emission into the power pricing structure. This makes options that are not environmentally friendly costlier than those that are.
Best of all, government policies such as incentives and subsidies for renewable energy projects, impact the electricity pricing structure in the country. These policies encourage and support the growth of alternative energy sources that are sustainable. This in turn contributes to the predictability and sustainability of the cost of electricity.
Based on the above information, we would now share some tips that will help you get the best rates for energy at all times.
Strategies and Tips for Securing Cheap Electricity
We took out time to briefly show you what informs the pricing structure in Norway. While that information is foundational, it would do you no good if you do not use it to position yourself for the most affordable energy cost possible. So find below strategies and tips to employ
Employ Technology
This aspect involves your power usage and how you can adjust to enhance your energy efficiency. Thankfully, technology is great resource that can help us achieve a lot of things including energy conservation. Find below how you can engage technology for this purpose:-
- Smart Thermostats– They learn the temperature you desire for your home and adjusts it automatically. You can control them remotely to adjust the temperature when you are not at home.
- Smart Lighting – These are programed to come on only when needed.
- Smart Power Strips – Help to curb Phantom energy by turning off electronics connected to then when the electronics are not in use.
- Smart Appliances – You can upgrade to smart appliances such as fridges with camera so that you use your smart phone to see what’s inside the fridge instead of opening it often.
- Smart Windows – These are configured to adjust their tint based on the amount of sunlight you want in the house.
Visit https://phys.org/ for more information in how technology can help you conserve energy in your home.
Upgrade your Appliances and Change your Habits
For those who are not ready to go all the way with technology, there are still ways that you can conserve energy without letting go of your creature comforts:-
- Change your light bulbs – If you are still using incandescent bulbs, change them to LED bulbs. By so doing you can save as much as 90% of the power you use in lighting your home.
- Upgrade your Appliances – Buy energy saving appliances; look out with household items that have the Energy Star on them. This Energy Star emblem certifies that the appliance is an energy efficient one and adheres with the standard of the Green initiative.
- Use less hot water – You can do this by shortening your shower times and using cold water to do your dishes and laundry.
- Employ a Time-of –Use –Plan – This means that you will organize chores that consume heavy energy to be done in the off peak periods. Find out when that is in your region and organize your chores accordingly.
- Turn off lights and appliances when they are not in use or when you are leaving a room.
Tips for Getting the Cheapest Supplier
It is recommended that you check out other suppliers once every year. This is because electricity suppliers are in competition to get more clients therefore they give out different incentives to attract customers. So if you go a whole year with one supplier, chances are that there is a cheaper supplier in town.
When looking at suppliers, ensure that you prioritize those that give you a long fixed price guarantee. This means that you get pay the same price on your contract throughout the period of warranty. After that period ensure that the price is still competitive and has not been arbitrarily set to what you’ve been paying.
The following are factors to consider and things to do before you sign up with a new supplier:-
- Find out the spot market price or the prevalent pricing in the market.
- Determine your electricity requirements (that is your necessary usage).
- Find out whether there are exit fees for leaving the old supplier.
- Make sure you do not have any outstanding bills.
- Compare different companies.
- Find out what the details of the new contract.
The following are steps for switching suppliers:-
- Find the cheapest option
- Begin the process of switching
- Read the terms of the new agreement carefully and ensure that you understand every detail and agree with it.
- Sign the contract
When you sign the agreement, the new company will facilitate the termination of the old contract. This process takes about 2 to 3 weeks before the switch is effective.
Conclusion
In a country where there is a proliferation of electricity companies, it wouldn’t do for you to keep paying high rates for electricity. In this article, we have shared some strategies and tips that will help you navigate affordable power. Bear them in mind and implement so that you can enjoy the best service possible at the cheapest price.
