Definition
The spot price is the market price for electrical power set through bidding on Nord PoolNordic electricity exchange where power is traded in the wholesale market - the basis for electricity prices in Norway and the Nordic region.'s Day-Ahead market (Elspot). The price is set daily for the following day, hour by hour, based on supply from producers and demand from consumers and electricity suppliers. The price varies by bidding area (NO1–NO5) to reflect bottlenecks in the grid - Norway is divided into five price areas. The Norwegian spot price is closely linked to the European gas market, reservoir fill levels, wind power generation in the Nordic region and cable capacity to other countries. A Norwegian household with a spot price contract pays the spot price plus a supplier mark-up per kWh. The electricity supplierCompany that sells electricity to end users - purchases power in the wholesale market and sells it to consumers. purchases power on the spot market and sells it on to the customer - the difference is the supplier's margin and price risk. With AMSAdvanced Metering and Control System - the digital electricity meter Norwegian households received from 2019, reporting consumption hourly to Elhub. and hourly resolution, the supplier can calculate the customer's actual cost hour by hour.