The Norwegian retail market for electricity is a well-functioning market. There are several retailers, a wide selection of contracts and moderate switching activity. NVE’s Department of Energy Market Regulation supervises the retail market in accordance with provisions under the Energy Act and adjoining regulations. As a regulator, NVE works to ensure that the retail market is well-functioning and easy for consumers to engage with.
The retail market will be affected by major developments between 2015 and 2021, as a result of new regulations from NVE. A common theme for these changes is the digitalisation and the Nordic regionalisation of the retail market.
In 2015, the Norwegian Consumer Council launched a new price comparison tool for the retail electricity market. NVE implemented new reporting regulations for the tool under the Energy Act, which came into force the same year.
In 2016, the Nordic Balance Settlement (NBS) mechanism will come into operationl. This entails a common balance settlement mechanism between Norway, Sweden and Finland, operated by eSett Oy in Finland.
- The implementation of common Nordic balance settlement is recommended by NordREG.
In 2017, Statnett will launch Elhub, a new centralised database for electricity meter data from smart meters, simplifying the market structure and putting consumers in control of their data. NVE has mandated the development of Elhub through regulatory amendments.
- The implementation of data hubs in the Nordic region is recommended by NordREG.
In 2019, the roll-out of smart metering will be completed for all metering points in Norway. This has been decided by NVE through regulatory amendments, which also specify requirements for the functionality of smart meters.
NVE will develop new regulations for the implementation of a supplier centric model, making retailers the main point of contact for consumers in the retail market.
- The implementation of a supplier centric model is recommended by NordREG.
In 2021, legal and functional unbundling will apply to all DSOs irrespective of size. A new unbundling leglisation was enacted by the Norwegian Parliament in March 2016 and enters into force 1 January 2019.