Making sense of your electricity costs

Negative prices, variable contracts, fixed contracts, and hourly rates. There are a lot of questions about electricity prices right now. "A common annual pattern is that it gets more expensive in winter, but I don't think we'll come close to last year's levels," says André Gustavsson, an analyst at Skellefteå.Kraft.

André Gustavsson and Maria Nyström discussing electricity prices. There are many factors that contribute to the final price.

André Gustavsson and Maria Nyström discussing electricity prices. There are many factors that contribute to the final price.

Foto: Gerth Hedberg

Skellefteå2023-10-23 16:00

The price of electricity is a hot topic as we approach winter. Last year, the price rose sharply and it became very expensive for many households.

– The customer service department has reported a lot of calls, says Elin Ala, press officer at Skellefteå Kraft.

Norran meets analyst André Gustavsson and business unit manager Maria Nyström to find out more about the current situation.

There is a lot of talk about negative prices. How does this affect consumers?

– It's the spot price of electricity, but there are many other charges that ultimately affect the final price. Those with hourly billing can follow the price of electricity and have the opportunity to control their consumption, says Gustavsson.

– Only about 7,600 out of about 190,000 customers have chosen hourly billing. A negative price can occur when more electricity is produced than is needed.

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Maria Nyström, business unit manager, Skellefteå Kraft.

– On "My Pages" you can see how much electricity you have used and what the next few days will look like. We are also developing the service to make it easier for you to control your electricity consumption, says Nyström.

It is much more common to choose between a fixed and a variable price electricity contract.

– We have seen that after last year more people are choosing a fixed price, says Nyström.

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André Gustavsson, analyst, Skellefteå Kraft.

– Whether you have a fixed or a variable contract is a question of how stable you want your household expenses to be. What I can say is that prices have gone down, and even the fixed contracts are lower than last year, says Gustavsson.

Skellefteå Kraft has now also introduced a new type of electricity contract.

– Winter insurance. You can temporarily fix your contract at a fixed price for six months, and then it becomes variable again when the time is up, says Nyström.

Of the total price you pay, 45 percent is made up of taxes and other charges. The rest is divided into two parts: electricity consumption and electricity transmission. You can have contracts with two different companies for these services.

The electricity trading company charges based on consumption and is influenced by the purchase price on Nord Pool. Other fees are also included, such as a monthly fee, electricity certificates, surcharges, and origin guarantee costs. VAT is then added.

The electricity grid company manages the electricity grid. There you pay a subscription fee for using the network based on the size of the fuse, an electricity transmission fee based on consumption, a regulatory fee, energy tax, and VAT.

Energy tax rise

The energy tax will increase at the turn of the year.

Last Wednesday, the government published the regulation stating that the tax will be adjusted for inflation, which is 9.2 percent or 4.5 öre per kWh, including VAT.

For a household that consumes 20,000 kWh in a year, this means a tax increase of 900 kronor next year.