The alarm: The price of electricity may triple after the turn of the year

Electricity prices have been low during the Christmas holiday, in contrast to last year’s high levels. This year it has been just over 30 öre per kilowatt hour. But colder weather is moving in and that will affect the price significantly.

– Around Epiphany and the working days thereafter, prices can be around one kroner per kilowatt hour, says Christian Holtz, energy market analyst, to SVT.

The increased electricity prices will last as long as it is cold and windless, believes Christian Holtz. Increased gas prices also affect the price of electricity and cause it to rise. Concerns about the situation in the Middle East in turn cause the gas price to increase, and it went up six percent on Wednesday.

The tax is also increased

When the clock strikes midnight on New Year’s Eve, the electricity tax is also raised. It follows the rate of inflation and is therefore increased by 9.2 percent – which, calculated in kroner and ören, is 4.5 öre per kilowatt hour, according to DN.

– The electricity tax increase means around one thousand Swedish kroner per year in electricity price increases for an ordinary villa, Ann-Catrin Dahlbom at the electricity trading company Elskling tells the newspaper.

More stable electricity market

However, electricity prices as high as last year’s record highs are not to be expected. Christian Holtz points out that the gas reserves around Europe are more well-filled, which means that we are not quite as sensitive to the power of the weather.

– The situation is completely different this year. Although it will be a cold winter, it is more stable this year, so I don’t think we will see prices as high as last year, he says.

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