A Balancing Act – Report from the Electricity Price Committee

Background

The core of the committee’s mandate was to explore measures that can mitigate the effects of possible future electrical price increases. These proposed measures are meant to protect electricity consumers from price increases range from significant changes to the power market, to the introduction of support schemes. Moreover, the committee’s findings analyzed the effects of various forms of measures, including price effects, other consequences, and barriers to their implementation.

The Electric System Must Always Remain in Balance

Thousands of producers and millions of consumers in Norway and Europe must ensure, both individually and together, that electricity is produced and consumed in precise amounts at the same time. As electricity prices and their variations play a crucial role in conveying information to coordinate all these decisions, this balancing act is pivotal for future pricing stability.

Analysis by Electricity Price Committee

The committee analyzed both the current system, as well as possible measures to achieve lower, more competitive electricity prices in the future. This included both short and long-term effects. The report also focused on ensuring investments in renewable energy. It addressed end-users, industry, and businesses. After the analysis of 50 various measures, the committee highlighted three fundamental aspects in their report that can influence future prices:

• Maintaining the electricity balance to ensure competitive and stable prices.
• Preparedness for possible redistribution, which must be permanently in place to manage undesired distribution effects.
• Regulatory measures to adapt to significant changes in the internal and European markets.

Hjort-partner Kristin Bjella participated in the Electricity Price Committee:

You can read the full report here.