Over the past three years, grid fees have risen by an average of 26 percent, while inflation has been at five percent. The reasons for this are being questioned as the industry signals further increases ahead.

Since last year, the electricity grid fee rose by an average of eight percent. This is shown by figures from a new report from the Nils Holgersson Group, an alliance of housing organizations. And over the last three years, the increase has been significantly higher.

– Grid fees have risen 500 percent more than inflation in three years. The largest increases this year are mainly found among grid companies that have introduced so-called capacity charges, says Björn Berggren, chairman of the Nils Holgersson Group.

A capacity charge is part of the grid cost that is based on how much electricity you use at the same time, in other words, your highest power consumption over a certain period. It is usually measured in kilowatts (kW). The purpose is to reduce the load on the electricity grid at times when many people use a lot of electricity simultaneously. By spreading out electricity consumption, customers can often achieve lower fees.

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Today, the most expensive grid is more than twice as expensive as the cheapest one.

– That the difference is this great shows there is no reasonable explanation, says Björn Berggren of the Nils Holgersson Group to TT.

The most expensive grid is operated by Kraftringen, a company owned by municipalities in Skåne, at 195 öre/kWh including VAT. But in Bromölla, also in Skåne, the grid price is 90 öre.

– Therefore, it cannot be said that it is more expensive in southern Sweden, or that it is pricier outside metropolitan regions. On the contrary, it shows that there simply is no explanation, says Berggren, who also notes that regulation by the Swedish Energy Markets Inspectorate is not working.

Large Investments

The national average grid fee is 132 öre/kWh including VAT. Electricity companies point to the large investments required as justification for recurring price increases.

According to Tomas Malmström, head of grid issues at Energiföretagen Sverige (Swedenergy), society’s expectations require grid companies to invest and ensure that customers continue to receive safe and reliable electricity deliveries.

– Swedish grid companies invest about 30 billion SEK per year, which naturally is reflected in price developments. The investments deliver results in the form of very high supply security and few interruptions for Swedish grid customers, he says.

Increased Investment Pace

At the same time, there are warnings that the pace of investment must increase going forward to meet requirements for delivery security and effective connections, both now and in the future, especially due to electrification and new demands from industry and society.

– Finding the balance between customers’ costs and grid companies’ ability to invest is the foundation of grid operations. And even though the debate about grid prices is heated, it is also important to consider what an underinvested grid would mean in terms of future costs.

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