Which is cheap and which is not

As we go about our daily lives, probably the one thing most of us can’t function without is electricity. Ever since electricity came into our lives, it made a lot of things easier thus making us very dependent on it to do various tasks, from the simplest to the more difficult ones. As with the growing number of people, so does the demand for electricity. More so that some electric companies barely keep up with the demand. That is why some countries turn to renewable sources of energy to meet the growing demand.

One country highlighted is Norway. Norway is Europe’s largest producer of hydropower. Hydropower or hydroelectric power plants capture the energy of falling water to generate electricity. Aturbine then converts the kinetic energy of falling water into mechanical energy. Then a generator converts the mechanical energy from the turbine into electrical energy. That’s basically how a dam works. But even with these renewable sources of energy, growing demand coupled with lesser rainfall over the years has Norway also in a bit of a bind. Electric prices seem to soar as the supply tries to meet the ever growing demand. That is why some people are opting to switch to cheaper providers. Strømpriser is a site that offers a list of cheap providers in Norway as well as guides on how to minimize electricity usage.


Identifying the affordable from the expensive

Most of the time, these providers have the same power flow rates, so what you need to look at are how much their additional charges are. The lesser the charges, the cheaper the provider. What you also need to know is more or less most of these providers often get their supply of electricity from the same sources.

What you also need to look into to separate the cheap from the expensive ones are their power price agreements and contracts. Some providers offer different price agreements in their plans. There are three different types of power agreements in the Norwegian power market today. Take note of each and as to which provider offers which.

Payment agreements

There are three price agreements available, although power prices in Norway tend to change every month. Choosing the right power agreement that suits your needs as well as your budget may be the solution for you to cut back cost in the long run.

The fixed price agreement is the most common one on the market.  You buy the current at a fixed price and it will stay that way throughout the year, although you still have to pay a bit more during winter time, at least you know what you’ll be paying for the rest of the year.

The cheaper, more long-term solution is the spot price agreement since the providers often base their prices on the power exchange rates.

Quite similar to the spot price but a bit more expensive is the variable or purchase price. The providers choose to base their prices on the average daily cost of the electricity.

Knowing how to identify the cheaper providers from the expensive ones is a step further in you saving money from electrical bills. It is not and end solution though, you still have to know how to reduce usage of electricity to ultimately reduce the number found on your bill.