Norwegian businesses face surging electricity bills this winter as low water reservoir levels and tight European gas supplies threaten to replicate the severe energy crunch of 2022, according to the Confederation of Norwegian Enterprise (NHO). NHO Chief Executive Ole Erik Almlid has urged the government and parliament to implement immediate protective measures to prevent a widespread industrial investment slowdown, pointing to estimated spot prices reaching up to two kroner per kilowatt-hour in southern regions.
Winter Energy Pressures Mount Across Southern Norway
Power prices in southern Norway have climbed steadily through the autumn months, driven by volatile international markets and conflicts in Iran and Ukraine. According to market analysis from Volue cited by NHO, winter electricity prices are projected to range between 150 and 200 øre per kilowatt-hour before grid tariffs and taxes are applied. This surge contrasts sharply with average autumn prices of 70 to 90 øre per kilowatt-hour recorded during the same period last year.
Underpinning the price spike are severely depleted water reservoirs. Data from Nord Pool and industry reporting show that reservoirs in Southern Norway (price area NO2) sat below 50 percent capacity at the end of September. Over the past twenty years, the seasonal median fyllingsgrad has hovered around 84.9 percent, making the current deficit historically deep—comparable only to the low levels seen in 1996.
NHO Proposes Three Strategic Energy Fixes
To shield commercial enterprises from crippling overhead, Almlid has asked the Norwegian Storting and government to adopt a three-pronged strategy rather than pushing for direct consumer subsidies like a universal “Norgespris.” NHO’s proposals focus on boosting structural efficiency and containing operational friction:
- Energy Efficiency: Expand Enova’s mandate to provide greater financial support for business-level energy-saving measures, solar installations, and localized battery storage.
- Grid Tariffs: Keep transmission fees low by continuing to channel Statnett’s bottleneck revenues into tariff equalization funds, offsetting high costs associated with necessary power grid investments.
- Fixed-Price Contracts: Overhaul corporate fixed-price power agreements to offer greater flexibility, shorter commitment terms, and better alignment with seasonal consumption variations.
“We are not asking the Storting for subsidies or a Norgespris for businesses,” Almlid stated regarding the proposals. “That would likely face problems with EØS rules. But many companies are frustrated by high prices, and we must build more power.”
Government Response and State Revenues
State Secretary Marte Haabeth Grindaker of the Ministry of Energy emphasized that the Labour-led government remains focused on establishing competitive operating conditions through bureaucratic streamlining and expedited grid approvals. Grindaker noted that Enova already maintains active support programs designed to reduce energy consumption and boost local generation capacity.
Addressing fixed-price availability, Grindaker highlighted that recent tax adjustments have enabled competitive offerings. In August 2026, utilities such as Lyse offered fixed-price contracts starting around 75 øre per kilowatt-hour in the NO2 region, saving participating enterprises hundreds of thousands of kroner. Regarding grid tariffs and Statnett’s bottleneck revenues, the Ministry noted that extraordinary surplus revenues did not materialize in the same manner in 2026, and officials are currently evaluating whether to extend the equalization scheme past 2026.
While state revenues from the energy sector fluctuated significantly in recent years—reaching 39,6 milliarder kroner in 2022 and 52,5 milliarder i 2024—business leaders maintain that lingering cost uncertainty continues to hamper domestic capital investments.
Frequently Asked Questions
Why are Norwegian power prices expected to rise this winter?
Prices are climbing due to below-normal water levels in southern reservoirs, tight natural gas inventories across Europe, and heightened geopolitical instability affecting international energy markets.
What is the NHO proposing instead of direct price subsidies?
NHO advocates for increased Enova grants for corporate energy efficiency, the continued use of Statnett bottleneck revenues to suppress grid tariffs, and more flexible fixed-price contracts from power producers.
How full are Norwegian water reservoirs currently?
At the close of September, reservoirs in Southern Norway were under 50 percent full, significantly trailing the 20-year median of 84.9 percent for the same seasonal timeframe.
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