The Swedish Electricity Market: A Guide for Foreigners

Moving to a new country can be quite challenging in itself, and understanding how essential services like electricity work is no exception. If you're an expat, student, or simply new to Sweden, this article will help you understand the Swedish electricity market, and we'll cover electricity contracts, the difference between the electricity grid and electricity trade, understanding your electricity invoice, and electricity rates in Sweden. Let's get settled!

Electricity Contracts in Sweden

In Sweden, there are two main types of electricity contracts: fixed and variable rates.

• Fixed-rate contracts: These contracts lock in your electricity price for a set period, usually one to three years. This can provide stability and protect you from market fluctuations.
• Variable-rate contracts: The price of electricity in these contracts varies based on market conditions. While you might benefit from lower prices at times, there is also a risk of paying more when market prices increase
  • There are also hourly-rate contracts as a variant to monthly variable-rates, where you can plan your electricity usage on an hourly basis to potentially save money on your electricity.

Electricity Grid vs. Electricity Trade in Sweden

Understanding the distinction between the electricity grid and electricity trade in Sweden is crucial.

• Electricity Grid: The electricity grid is the infrastructure that delivers electricity to your home. In Sweden, you cannot choose your grid provider as it is assigned based on your location, and your local grid operator maintains the infrastructure and ensures reliable delivery of electricity.
• Electricity Trade: This refers to the actual buying and selling of electricity. Unlike the grid, you can choose your electricity supplier. This allows you to shop around for the best rates and terms that suit your needs.

Understanding Your Electricity Invoice in Sweden

Swedish electricity invoices can be a bit confusing at first, even for most Swedes. Here’s a simple breakdown of common components:

• Energy Consumption (Energiförbrukning): This shows the amount of electricity you've used, typically measured in kilowatt-hours (kWh).
• Electricity Cost (Elkostnad): The cost of the electricity you've used, based on your contract rate.
• Grid Fee (Nätavgift): A fee for the maintenance and operation of the electricity grid. This is usually a fixed monthly fee plus a variable part based on your consumption.
• Taxes and VAT (Skatter och moms): These are government-imposed charges.

Also good to know is that if you have chosen an electricity trade provider which is not the same as your electricity grid provider, you’ll get two invoices each month; one for the grid, and one for trade. 

Electricity Rates in Sweden

Electricity rates in Sweden vary based on several factors, including market conditions, your contract type, and location. Generally, electricity prices can fluctuate seasonally, with higher rates in the winter due to increased demand for heating. 

Is Electricity Expensive in Sweden?

Electricity costs in Sweden are moderate/high compared to other European countries. Prices have been rising in recent years, and the cost you'll pay depends on your consumption, contract type, and the electricity supplier you choose.

Tips for Managing Your Electricity Costs in Sweden

• Compare Providers: Regularly monitor your costs, and search for alternative providers to find the best electricity rates, plans and providers for your needs.
• Monitor Consumption: Also keep track of your energy use and look for ways to reduce it. If you sign up for an hourly-rate contract, you can be smart about when to use your laundry machine, dishwasher and similar during low-cost hours.
• Consider Fixed Rates: If you prefer predictable costs, a fixed-rate contract might be the best option for you. It’s however never a guarantee to save money simply by choosing a fixed rate contract.

Can I Get An Electricity Contract in Sweden Without A Swedish Personal Identity Number?

Some electricity companies in Sweden allow you to register for an electricity contract without a Swedish personal identity number, but you usually need to contact them via phone or chat to provide the necessary details. Generally, however, a Swedish personal identity number is required to register for an electricity contract, and you oftentimes also need BankID in order to sign your contract online.

Popular Electricity Companies in Sweden 2024

Tibber

Tibber is a very popular option, thanks to their innovative approach to electricity by providing 100% fossil-free energy at hourly rates. With the Tibber app, you can easily monitor and analyze your electricity consumption, making it easy to shift usage to cheaper hours and reduce costs. They also have referral bonuses and their own store, Tibber Store, where you can buy smart gadgets for your car and home.

Read more and sign up for a contract on Tibber's website.

Greenely

Greenely offers a smart and sustainable approach to managing your electricity consumption through their user-friendly mobile app. Greenely helps households save money on their electricity consumption through their hourly rates, and contribute to a more stable and eco-friendly power grid.

Learn more and find a contract for you at Greenely's website.

Fortum

Fortum provides a variety of electricity plans to suit different needs and preferences, all while providing 100% fossil-free energy. With various pricing plans and generous special offers, Fortum is a popular electricity provider for Swedish households.

Find more info about Fortum and their contracts on Fortum's website.

Skellefteå Kraft

Skellefteå Kraft offers electricity plans to meet the various needs of households across Sweden, and has a focus on sustainability, eco-friendly energy and high customer satisfaction. They offer Fixed-Rate Plans, Variable-Rate Plans, and Mixed-Rate Plans.

Check the latest info and sign up on Skellefteå Kraft's website.

Enkla Elbolaget

Enkla Elbolaget is a company offering sustainable energy solutions to Swedish homes. With 100% renewable energy and customer-friendly plans, they make managing electricity effortless. They also offer EV-charging solutions, their own electricity fund called Elfonden Relaxa, and solar panel solutions.

Read more details and sign up at Enkla Elbolaget's website.

Kärnfull Energi

Kärnfull Energi stands out in the market by providing 100% nuclear-generated electricity, focusing on research, sustainability and reliability. With a mission to offer clean and stable energy, Kärnfull Energi wants your power supply to be both eco-friendly and dependable.

Read more about their contracts and rates on Kärnfull Energi's website.