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ENERGY

How do I check my Norwegian electricity plan and decide whether to change?

Current energy prices may mean it might be worth considering switching to a different electricity plan. So, how do you go about this in Norway?

Published: 2 November 2022 15:46 CET
Updated: 5 November 2022 09:23 CET
Pictured is an energy meter.
Here's how to check your current deal and what to do if you want to change energy providers. Pictured is an energy meter. Photo by Arthur Lambillotte on Unsplash

High energy prices mean many in Norway are facing the prospect of extremely expensive bills this winter.

Electricity providers offer consumers both fixed-price (fastpris) and spotpris, where users pay a variable current market price, plans.

Spot price plans allow users to take advantage of lower prices at off peak times, such as at night. The rate you are charged can change by the hour and can be significantly lower compared to peak times though. However, if prices are high- the price you pay is high. One issue with a spot price agreement is fluctuating prices can make it hard to anticipate bills.

You can use various instruments and tools to keep an eye on the spot price and take advantage of periods where prices are lower.

Fixed price contracts set the energy price at a specified amount. This price then applies around the clock and remains in place for a set amount of time. This makes it easier to anticipate and plan ahead for bills, but makes it impossible to take advantage of off-peak pricing.

With the cost of energy being so high, and fluctuating so much, energy firms in the south-east and other areas of the country with high prices have in some cases stopped offering fixed-term agreements.

So how do you check your plan and decide whether it would benefit you to change?

Current plan

Initially, it’s worth checking how far ahead you are tied into your deal with your current supplier – the bindingstid in Norwegian. This can be seen on your contract – you may have a paper copy or be able to see it by logging on to the customer portal (selvbetjening) on the company’s website. You can also call the company to ask for your contract details.

Even if you are committed to your current company several months ahead, you may have options. Companies may allow you to switch to one of their other plans. This way, you can change from a fixed-rate to a variable contract (or the opposite), usually effective from the beginning of the next month.

It’s also okay to call a company and ask if they can offer a more suitable deal for you – especially if you think you’ve seen a better offer at another company, and are wondering if your current company can match it.

You can change your electricity supplier if you live in a rented property, provided electricity is not included in your rent. If in doubt, check with your landlord or housing association.

How do I compare options?

To find out whether you can save money by changing company or plan, you can use an online calculator or comparison site, such as this one.

You will need to enter your address and may also be asked for other details, such as how many people live there and whether you have solar power.

Some calculators can estimate your consumption based on the details you enter, but you will get a more reliable result if you put the figure in yourself.

You can find out your annual electricity consumption in kilowatt hours by reading your electricity meter or from your most recent electricity bill.

If you live in an apartment, the building’s superintendent or portner should be able to help you to read your meter, if it is not located within the apartment itself. You can check your previous bills using your internet banking records, if you have automatic payment set up.

After you enter your details into the online calculator, it will return a number of results that might be suitable for you. These could be either fixed-rate or variable plans (the results can be filtered to show one or the other).

In some parts of Norway, such as Oslo, a fixed rate deal will not be an option as firms in parts of Norway where the prices are highest have stopped offering them. However, in northern and central Norway these fixed term deals are still an option.

It’s also worth keeping in mind that levels of service can vary between companies, and companies can have different fee policies. These can offset what appears to be a saving based on the rate alone. It’s therefore worth asking around and trying to find out a little more about a company before making a final decision.

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MONEY

How to protect your Norwegian savings when the stock market jitters

Despite a rebound on the Tokyo Stock Exchange on Tuesday, Monday's stock market fluctuations have left Norwegian consumers worried about their savings invested in the market.

Published: 6 August 2024 10:01 CEST
How to protect your Norwegian savings when the stock market jitters

On Monday, concerns about a potential recession in the US influenced financial markets across Asia and Europe.

The Oslo Stock Exchange (Oslo Børs) opened with a sharp fall on Monday morning. This downturn followed a stock market crash on the Tokyo Stock Exchange.

READ MORE: What the Norwegian krone’s fresh slump means for your finances

Similar declines were seen in other Scandinavian capitals, such as Copenhagen and Stockholm.

Wall Street mirrored this negative trend, with the Nasdaq technology index plunging over 6 percent at the opening.

By the end of the trading day, Nasdaq closed down 3.43 percent, the S&P 500 fell around 3 percent, and the Dow Jones ended down 2.6 percent.

Despite a notable rebound on the Tokyo Stock Exchange on Tuesday, with the Nikkei index rising more than 10 percent, the dramatic stock market fluctuations have left Norwegian consumers worried about their savings invested in the market.

Many were left wondering whether the developments called for action.

Important not to make rash decisions, expert says

Generally speaking, when you see alarming headlines about the stock market, most people shouldn’t do anything – they should sit down and calmly ride the wave out, Américo Fernández, a household economist at the Swedish SEB bank, told The Local on Monday.

“Of course, it’s always dramatic when we have such developments in the stock market in just one or two days,” he said, adding that people with savings in the stock market shouldn’t be that worried.

“I would say that this is how the stock market works: there’s a lot of uncertainty and risk connected.

“When you have savings on the global stock exchanges, this will happen, especially when we’ve had at least six months of really, really good returns – maybe even too good. Then, this is a little bit expected,” he said.

Advice for savers across Scandinavia

Fernández shared his advice for worried savers across the Scandinavian countries, noting that it’s understandable that stock market volatility can raise concerns about the safety of people’s savings.

For those wondering how to protect themselves against such crashes, he emphasised the best strategy is to take a consistent and steady approach to investing.

“The most common thing, the best strategy for the broad masses, is to save every month,” he said, adding that investing in a mutual fund is a great way to go about this.

“In circumstances such as these (note: when there’s a crash), you buy more at a lower price. So, instead of timing the stock market, which is almost impossible, continue your monthly investments through mutual funds. That’s a good way of diversifying your portfolio,” he said.

READ MORE: How much money do you need to live on a single income in Norway?

The SEB household economist also advised against reacting hastily to alarming headlines.

“It’s understandable that a lot of people are affected by herd mentality when we have these negative headlines. Everyone, but especially households with tiny savings, acts and sells, and then they buy again when the headlines are positive, when the stock exchange is at high levels…

“That is the opposite of what you should do. Try to neglect these things and be cool in these circumstances, even though it seems bad and hurts your wallet,” he noted.

This advice is relevant across Scandinavia, according to Fernández.

“I think it’s applicable across Scandinavia. All Nordic countries save a lot of money on the stock exchange, partially because the pension system isn’t fully funded by the government,” he said.

US financial developments and new stock market tumbles

Is this stock market fluctuation a rare event, or is there more volatility on the horizon?

In recent years, the US stock market had surged on the wings of strong technology optimism, chief economist Elisabeth Holvik at SpareBank 1 told the Norwegian Broadcasting Corporation (NRK) on Monday.

However, recent declines saw technology giants like Nvidia, Apple, and Tesla falling between 4 and 7 percent.

“Now, we see that the economy is slowing down. Industry is slowing down, and consumption is slowing down. One is afraid that the whole economy will slow down too quickly and that the central bank has fallen far behind when it comes to cutting interest rates.

“So, until you get the first interest rate cut, I think there will be great uncertainty and the risk of a further fall in the stock market,” Holvik said.

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