Consequences for tariffs and end-use after deregulation: Experiences from the Norwegian utility industry

Klaus Livik and Nicolai Feilberg, Norwegian Electric Power Research Institute (EFI)
Ståle E. Johansen, SRC International

Abstract

Since January 1991 the Norwegian electricity supply industry has been deregulated and restructured. This restructuring abolishes the utilities… former exclusive right to supply a consumer within its supply area, by that introducing supply-side competition.

Customers, theoretically of any size, can now shop around for the best supply deal from any utility. However, distribution and transmission networks will still be monopolies while the sale of electricity among producers, distributors and consumers will lend itself to market conditions. This situation is intended to create a more efficient market for trading. It will also give a greater interest among utilities for energy services to their consumers. This paper presents main experiences and future possibilities regarding to tariffs for transportation (transmission and distribution) including energy services, marketing, new technology for metering systems and consequences for the end-use. Because of the deregulation, utilities have experienced both problems and opportunities for the future. This paper describes the current deregulation in Norway, and gives examples of solutions to achieve a more efficient supply industry with the consumer in focus.