Lysaker, 11 January 2006 Nord Pool has received the following information from the Norwegian Water Resources and Energy Directorate (NVE): Cold weather contributed to high electricity demand and increased prices in the first week of 2006. As a consequence of this, the Norwegian electricity production increased. Particularly at the start of the week, in peak hours, the utilisation of the production and export capacity was high. High production combined with low inflow made an impact on the reservoir filling, which fell 3.4 percentage points during week 1. In Sweden the level dropped 3.6 percentage points. The level in Norway is 4.1 percentage points above normal, while the level in Sweden is 0.9 percentage points below normal. The electricity price in the south of Norway was 0.297 NOK/MWh in week 1 (calculated at the Nordic power exchange, Nord Pool). That is 0.107 NOK/MWh above the price in the corresponding week last year, despite a higher present reservoir level. The accumulated snow pack in the mountains, however, is considerably lower than in the same week last year. The average price at the German Power Exchange, EEX, was 0.429 NOK/MWh in week 1. Compared to the corresponding week last year the price has increased with above 0.020 NOK/MWh. Higher fuel prices in thermal production, increased prices for CO2 quotas and colder weather are factors that can contribute to explain the increased price level. ------------------------------- Contact person at the Norwegian Water Resources and Energy Directorate: Nils Spjeldnæs NVE, tel: +47 2295 9274