Our power grid covers a total of approx. 50,000 km2. This corresponds to an area slightly larger than Denmark – and operates 24 hours a day, 365 days a year. This means that we are always working to ensure that all our customers receive power, and are quick to make repairs in the event of a fault in the power grid.
The power grid is critical infrastructure
While the vast majority of us take electricity for granted, a secure power supply is essential for Norwegian society to function. Virtually all critical societal functions and tasks such as hospitals, food production and schools depend on a power system that provides a reliable supply of electricity. This will be even more important as our lives increasingly become more reliant on electricity – at home, at work and in society at large. If you experience a power outage, you can be sure that we are already working on it to ensure that your power supply is reinstated as quickly as possible.
Grid rent fund operation and maintenance activities
When you pay your electricity bill, part of the amount you pay constitutes grid rent, i.e. what you pay to have electricity transmitted through the power grid to your home. It also covers costs related to operating the power grid, emergency response, expanding the power grid and improving the existing grid. This all ensures that you will enjoy a stable and reliable power supply.
Around one third of what you pay in grid rent goes to Elvia, and we use this to operate and maintain our power grid. In addition, 18 percent of grid rent goes to Statnett as rent for the high-capacity power lines into cities and local communities. The rest goes to state taxes in the form of taxes on electricity, VAT and contributions to the Enova Energy Fund.
Our monopoly is designed to benefit our customers
While you can pick and choose from many electricity suppliers when you buy your electricity, you automatically become an Elvia customer when you live in Innlandet, Oslo or Viken. The power grid is a natural monopoly as the average cost per transmitted unit decreases with increased utilisation of the power grid. This means that it would be more costly for society to have parallel power grids. Imagine a dozen electrical pylons right next to each other.
Grid operators are strictly regulated. The Norwegian Water Resources and Energy Directorate (NVE) regulates the grid rent that grid operators are permitted to charge. This is in order to prevent grid operators from charging too much and also to ensure that they always have the financial resources to make the necessary investments in the power grid, as well as to provide proper operation and maintenance.