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What is an electricity price area?

Electricity price area

A specific zone where the electricity is traded at the same spot price as it would on a power exchange. The area is decided by the transmissions systems operator, which is entrusted to bring energy (natural gas and electrical power) on a regional or national scale using specific infrastructure.

Where have you heard about electricity price areas?

Most people who use energy will know about electricity price areas. The price of electricity usually differs from area to area, depending on a host of factors, such as transmissions capacity. This causes different prices for the energy, creating electricity price areas and bidding areas.

What you need to know about electricity price areas.

Nord Pool is the largest runner in the market of European electrical energy and it’s measured in market share and volume traded. It offers both intra day and day ahead markets and over 80% of the electrical energy usage in the whole of the Nordic market is traded using Nord Pool. It runs in over 10 countries including, Norway, Sweden, Germany and the United Kingdom. Nord Pool was established in 1932 in Norway and has now over 380 members in 20 different countries.

Find out more about electricity price areas.

If you are interested in electricity price area, visit our page on spot price.

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