Frequently asked questions about the electricity market
Why are electricity prices so high?
Electricity prices are affected by the supply and demand of electricity, which in turn are affected by several factors. The main factors right now include:
- Russia’s war against Ukraine and its energy war against Europe, which has led to exceptionally high gas prices in Europe, and this affects electricity prices throughout Europe, including Sweden.
- Too little wind power production. On very windy days, electricity prices go down because we get a large surplus of electricity when wind power is running at full capacity.
- Reduced Swedish nuclear power because the Ringhals 4 nuclear power reactor is out of operation.
- When many people use a lot of electricity at the same time, the price will be high. If everyone instead uses less electricity, electricity prices may be lower.
How much do you think electricity prices will increase this winter?
No one knows exactly what this winter’s electricity price will be, but our experts have calculated two scenarios:
- For the price of electricity to go down, we need a mild winter with a lot of wind. This would lower the demand for heating and increase the production of electricity from wind power.
- On the other hand, if we have a cold winter with little wind, electricity prices will probably remain at high levels, or even increase.
Together we can reduce electricity prices
If we all reduce our electricity consumption and spread it out over the day, the demand for electricity decreases and we avoid bottlenecks in the grid – this would contribute to lower electricity prices. Both the EU and Swedish government are reviewing measures to reduce electricity prices.
Which electricity contract should I choose?
At the moment, the situation in the electricity market is extremely unpredictable. When choosing an electricity contract, you need to make the choice based on your own economy.
- If you can handle the price going up and down, we recommend one of the electricity trading contracts Managed Electricity Fund or Variable Hourly Rate.
- If you want to know exactly what the price will be per kWh, you should choose a fixed electricity contract – but it is then important to be aware that the price will be valid for the entire contract period, regardless of how market prices develop in the meantime.
- It is always better to make an active choice of electricity contract. If you do not make an active choice, you will be given a temporary monthly or designated price.
What can I do to lower my consumption and costs?
- On our page titled 22 Tips for Saving Electricity, you will get practical tips on how to reduce your electricity use.
- Monitor the spot price! The spot price affects you if you have a variable hourly rate and variable electricity price. The spot price does not affect our fixed electricity price contracts, since these are priced on a futures market and not on the Nord Pool electricity exchange.
What happens if I can’t pay my electricity bill?
If you have difficulty paying your invoice, it is important that you contact our Customer Centre well in advance. We will then, together with you, try to help you by setting up a deferred payment or an instalment plan.