Electricity prices in Sweden hit lowest point since 2000 despite regional discrepancies

Electricity customers in most parts of Sweden have enjoyed unusually low prices, with an average electricity price of 8.5 öre per kilowatt-hour (kWh) in August, according to the Nord Pool electricity exchange. This is reportedly the lowest price since August 2000, primarily attributed to favorable weather conditions, including sunny, windy, and warm days.

However, southern Sweden (electricity area 4) experienced significantly higher prices, averaging 46 öre/kWh. This price discrepancy is partly due to reduced transmission capacity from maintenance and the annual overhaul of the Ringhals nuclear power plant, causing prices on the continent to affect those in Skåne.

Looking ahead to September, electricity buyers can expect continued favorable pricing trends, supported by persisting high temperatures and normal levels in water reservoirs. On the financial electricity market, future electricity contracts for the fourth quarter are trading at an average of around 40 öre/kWh across the Nordic region (system price), typically indicating lower prices in the north and higher prices in the south compared to this average.

For the first quarter of 2025, the current system price is slightly over 60 öre/kWh. So far this year, the average price has been 35 öre in Norrland, 41 öre in Svealand and northern Götaland, and 59 öre/kWh in southern Sweden, according to Nord Pool. It is important to note that additional costs, such as electricity tax, VAT, and network fees, exceeding one krona per kWh, are added to the market prices.