October 29 is fast approaching and with it comes the new electricity price model that may shock many households around Sweden.
Simulations performed by the comparison company Darling shows that the electricity price can be increased by up to 20 percent in certain areas. The worst affected are above all households in electricity area 3, where the majority of Sweden’s electricity consumers live. For villa owners, this can mean an electricity bill that increases by thousands of kroner per year.
Åsa Hauerbusiness area manager at Elskling warns of the consequences for many households:
– After two tough years with high inflation and high interest rates, this is of course a hard blow for many households. For some, it can be thousands of kroner extra per year.
READ MORE: Unknown trick to reduce the mortgage – that’s how you do it
Some benefit – others are hit hard
According to Elskling’s calculations, the price increases can hit home owners in electricity area 3 particularly hard, which covers big cities like Stockholm and Gothenburg. For a normal-sized villa, electricity costs can increase by around SEK 2,300 annually. But for larger villas, the increase can be even greater – up to SEK 3,000 extra each year.
While electricity area 3 sees large price increases, the situation may be different in electricity area 4, which covers parts of southern Sweden. There, households can actually count on reduced electricity prices, according to the calculations – with a drop of up to 7 percent.
The model, which aims to increase the availability of electricity and equalize prices, thus has different effects depending on where in the country you live. For those living in electricity zone 3, however, this can feel like a particularly hard blow, especially when you are already struggling with financial pressure from elsewhere.
DON’T MISS: Save SEK 5,900 a month – by being a “difficult” customer
So you can minimize costs
With the new electricity price model only weeks away, the question is what the households themselves can do to minimize the consequences. One piece of advice that often recurs is to bind your electricity price, which can provide some protection against future increases.
Åsa Hauer believes that fixed contracts are currently relatively favorable, but that this can change the closer we get to October 29.
– If you want to protect yourself against price increases and avoid stress, it may be time to fix your electricity price. Prices have come down, making fixed contracts relatively cheap now. But you should act fairly soon. The closer we get to the introduction, the more the electricity companies can be expected to adjust their prices on fixed contracts,
READ MORE:
They get SEK 3,700 more in their wallet – according to Handelsbanken
650,000 Swedes have to pay the Tax Agency today – are you affected?