That electricity prices are soaring is nothing new. In recent years, it has been synonymous with winter and cold.
On Wednesday, December 11, the prices of electricity in Svealand and Götaland rose to sky-high levels, similar to those during the 2022 energy crisis.
– Seventy percent of the industry’s energy use is in southern Sweden. So it has a strong impact on the competitiveness of the industry, said then Johan Bruceenergy manager at the organization SKGS to TT.
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Then the electricity will cost you SEK 11,000 more
The fact is that many have also chosen to take advantage of rising electricity prices during the winter of 2024. The electricity trading company Tibber now reports that close to half a million Swedes have signed fixed electricity contracts during 2024. But that choice also has a downside: it costs them approximately SEK 11,000 more per year than the cheapest option.
A survey they carried out, with statistics from Statistics Sweden, points out, however, that the electricity subscribers who have not chosen to act, in combination with those who have chosen fixed contracts, are the ones who pay the most for their consumption during the year.
Tibber’s mapping shows that a fixed electricity contract entails more than twice as high costs in relation to an hourly price contract during the period January to September.
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Those who are considered to be winners and thus fared the best when electricity prices soar are those who have chosen an hourly price agreement.
Close to 700,000 households in Sweden have chosen to get one in 2024, which gives an average annual cost of SEK 7,600, compared to the fixed one, which is around SEK 11,000.
In a written comment to News24 writes Tibber’s electricity market expert, Joakim Stenbeckthat more people should think through which contract they have and should get.
“Electricity prices are really high today, but the highest prices are limited to a couple of hours. Seen over the whole day, the electricity price is SEK 2.93/kWh. In order to deal with the rampant electricity prices, consumers should both think about which electricity contract suits their consumption patterns and review opportunities for energy efficiency in the home. For example, you can lower the indoor temperature, use electricity at cheaper times and invest in energy-efficient appliances to reduce your costs in the long run,” he writes.
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The appeal to you: Review your electricity contract now
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Electricity market expert Joakim Stenbeck. Photo: Press image Tibber.
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The big losers: “Most expensive electricity contract this year”
The cold, which has now taken hold in most parts of the country, means that a large number of people are stuck with electricity contracts that can make their wallets slowly but surely empty.
According to Stenbeck, there are clear losers who are hit hardest by the rising electricity prices, based on the statistics produced by Statistics Norway.
“Those who were on the most expensive electricity contract this year are the households, around half a million, who have signed fixed electricity contracts. Many choose a fixed contract to feel a certain security, especially in times of uncertainty, but it is important to understand that that security often comes with a high cost. In 2024, fixed contracts have been significantly more expensive than both hourly rate and variable contracts. To avoid paying more than necessary, it may be wise to evaluate your contract and consider alternatives that better suit the household’s energy needs and consumption patterns,” he concludes by writing to Nyheter24.
Then a fixed electricity contract can be an advantage
A fixed electricity contract can in some cases be advantageous for you. Namely, you know what the cost will be per kilowatt-hour each month, unlike if you choose a variable contract. Therefore, based on your financial ability, you can budget for that expense in advance.
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