Friday, November 26, 2010

Fears over cold winter push up power price

Electricity prices are rising sharply, due to a combination of the cold weather and low water levels in hydropower dams. Both Norway and Sweden are affected, reports news agency TT.

On the Norwegian electricity trading exchange Nordpol prices are already up by 40 per cent since last Friday. Prices on this exchange directly effect the bills for customers who have a floating-price deal with a power company.

When asked whether we are headed towards last winter's situation - with extremely high electricity prices - Sigge Eriksson at power company Vattenfall says "I don't really know what to think. I'm a little scared myself." he adds that it is hard to tell right now whether this is just an overreaction by the market.

Vattenfall's reservoirs are still at a low level, and all that is falling is snow, rather than rain - and Sigge eriksson says that there will be an even bigger lack of water in the coming weeks.

Consumers can take comfort from the fact that, unlike last winter, many nuclear power stations are running, or about to start up.

Prices on this exchange directly effect the bills for customers who have a floating-price deal with a power company.

No comments:

Post a Comment