Reed NewsReed News

Swedish grid companies must adopt effect tariffs by 2027

Economy & businessEconomy
Swedish grid companies must adopt effect tariffs by 2027
Key Points
  • Swedish grid companies must implement effect tariffs by January 1, 2027.
  • Ellevio introduced a new pricing model with effect fees in January 2025 for certain customer segments.
  • Implementation varies across grid companies, with some already having effect tariffs and different approaches.

In April 2022, the Energy Market Inspectorate tasked all Swedish grid companies with introducing effect fees by January 1, 2027 at the latest, according to a report from the Energy Market Inspectorate. This mandate requires all grid companies to have an effect tariff in place by that date. The effect tariff aims to make it profitable to spread electricity usage throughout the day, according to the Energy Market Inspectorate.

Ellevio has been an early adopter, introducing a new pricing model on January 1, 2025 for villa, row house, and holiday home customers as well as business customers up to 63A, where effect was a part, according to Ellevio. In Ellevio's case, the fee consists of three parts: a fixed fee depending on the customer's main fuse, a transmission fee based on electricity usage in kWh during the month, and an effect fee based on the average of the customer's three highest power peaks within an hour during the month, according to Ellevio. The effect fee accounts for 40 percent of the total grid fee, according to Ellevio, and at night from 22:00 to 06:00, only half of the power peak is counted, according to Ellevio.

Implementation varies across grid companies and customer segments. Some grid companies have already introduced the effect tariff, according to the Energy Market Inspectorate, but grid companies that already have an effect tariff have different ways of implementing it, essentially having customers pay partly for individual power peaks during a month, according to the Energy Market Inspectorate. Effect fees were not introduced for apartment customers, according to Ellevio, while customers over 63A have had effect fees for a long time, according to Ellevio. The exact financial impact on customers from the effect tariff, including typical cost increases or savings, remains unclear, as does how other grid companies besides Ellevio are implementing their effect tariffs beyond the general description.

From June 1, the grid company Ellevio is implementing changes, though the specific details are unknown as the article in Arvika Nyheter is locked. Uncertainties also surround how the Energy Market Inspectorate will enforce the January 1, 2027 deadline and what penalties non-compliance might entail, as well as whether there are any exemptions or special cases for certain customer groups beyond those mentioned, such as low-income households.

Corroborated
Östersunds-PostenDala-DemokratenSVT VärmlandAftonbladetArvika Nyheter+1
6 publications
View transparency reportReport inaccuracy
Swedish grid companies must adopt effect tariffs by 2027 | Reed News