Norway Effort to Shield Power Customers Drives Up Prices: Mind

A mechanism designed to shield Norwegian consumers from power-price volatility is boosting demand in the south of the country and pushing up prices both domestically and in neighboring markets, according to Danish energy trader Mind Energy.

Norway introduced its so-called Norge Pris last year after electricity rates surged amid rising exports to the UK and Germany, a development that also triggered the collapse of the then-ruling party. Since October, consumers have been able to choose between a floating or fixed rate, with almost 45% of the nation’s households signing up.