Swedish grid fees explained

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Overview

Swedish electricity grid tariffs are regulated network charges paid to Distribution System Operators (DSOs) for the use of the electricity grid infrastructure. These tariffs are separate from the actual electricity commodity price (paid to the retailer/supplier) and are determined by the DSO operating each metering grid area (MGA). The tariffs cover the cost of metering, distributing electricity, maintaining the grid, and investing in grid expansion and modernization.

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Evolution Toward Power-Based Pricing

Swedish DSOs are transitioning from traditional energy-based pricing (kWh) to power-based pricing (effektabonnemang) to better reflect actual grid costs and incentivize efficient grid usage. This shift encourages customers to spread their electricity consumption more evenly over time rather than creating demand peaks that strain grid capacity.

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The Regulatory Mandate for Power Tariffs

In 2022, Sweden’s energy regulator Energimarknadsinspektionen (EI) issued directive EIFS 2022:1, mandating all DSOs to implement power-based tariffs by January 1, 2027. The directive pursues two goals:

1. Cost-reflectivity (Kostnadsriktighet): Customers pay for the actual infrastructure they use, not theoretical capacity.
2. Efficient grid utilization (Effektivt nätutnyttjande): Power-based pricing incentivizes load spreading to flatten peaks and defer expensive grid expansion.

This regulatory shift is critical to developers: your plugin needs to understand tariffs from both legacy fuse-based subscriptions (still common for residential <63A) and the emerging power-based models (rapidly expanding to all customer segments).

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Tariff Structure

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Subscription Types

Swedish grid tariffs are typically structured into several subscription categories:

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1. Apartment Subscriptions (Lägenhet)

• For apartments with shared grid connections
• Simple pricing: Fixed monthly fee + energy-based transfer charge (öre/kWh)
• Typically for connections with 16A, but also up to 35A single-phase
• No power-based component

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2. Fuse-Based Subscriptions (Säkringsabonnemang)

For residential and small commercial customers (16-63A, sometimes up to 200A) Traditional model still used by some customers:

• Fixed monthly fee - Based on main fuse size (kr/månad)
• Transfer fee - Volume-based charge (öre/kWh)
• May offer choice between:
  • Single tariff (Enkeltariff) - Same rate year-round
  • Time-differentiated tariff (Tidstariff) - Higher rates during winter peak hours

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3. Power-Based Subscriptions (Effektabonnemang)

Historically for customers with 80A or higher connections Modern pricing model increasingly becoming standard:

• Fixed monthly fee - Base subscription charge (kr/månad)
• Transfer fee - Volume-based charge (öre/kWh)
• Power fee - Capacity-based charge (kr/kW per month or year)

The power fee is typically calculated as the average of the three highest hourly peaks measured over three different days during the billing period (usually monthly). Night discount: Many DSOs apply a 50% reduction to measured capacity during night hours (22:00-06:00), meaning a 10 kW peak at night counts as only 5 kW for billing purposes.

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Time-of-Use Differentiation

Many tariffs differentiate pricing by time:

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Peak Period (Högpris)

• Months: November through March (winter)
• Days: Monday through Friday (weekdays)
• Hours: 06:00 - 22:00 (can be individual per DSO)
• Higher rates during these periods reflect increased grid stress

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Off-Peak Period (Lågpris)

• Months: April through October (summer)
• Days: Weekends and public holidays
• Hours: 22:00 - 06:00 (nights)
• Lower rates during periods of reduced grid demand

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Seasonal Variations

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Winter Pricing (November - March)

• Peak/off-peak time differentiation active
• Higher grid tariffs overall
• Reflects maximum grid utilization during cold, dark months
• Critical for grid cost recovery

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Summer Pricing (April - October)

• Often flat-rate pricing (no time differentiation)
• Lower overall grid charges
• Reflects lower grid stress and maintenance periods

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The Swedish DSO & Grid Architecture

Sweden has approximately 170 distribution system operators, ranging from major national players (Ellevio, Vattenfall Eldistribution, E.ON) to small municipal utilities. Each DSO operates independently within their regional service area and sets their own tariffs within regulatory guidelines. The physical electricity infrastructure is hierarchical: Transmission System (run by SvK - Svenska Kraftnät)
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Regional Grid Areas run by regional DSOs
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Local Grid Areas - smallest operational unit, serviced by local DSOs Metering Grid Areas (MGA) are the granular building blocks of Sweden’s electricity system. Each MGA typically corresponds to a single DSO’s service area, though larger DSOs may operate multiple MGAs. MGAs are identified by unique 3-letter codes (e.g., “STH” for Ellevio Stockholm area, “GBG” for Gothenburg area). When querying power tariffs via the Engrate API, you’ll specify an MGA code to receive applicable tariff rules.

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Which Variables Determine the grid fees

The actual payment that a customer has to do regarding the usage of the grid depends on a couple of variables: Fuse Size (Säkring): A customer chooses their fuse size according to the expected maximum power they need at the connection point. Its size is defined in Amperes (A). The higher the value, the more the DSO charges (in the legacy tariff model). The fuse size can be changed in alignment with the DSO. Important: Every instantaneous peak power that is above the fuse size’s capacity will trip the circuit breaker, breaking the connection and causing a blackout. For a three-phase 400V connection with a 63A fuse, the maximum power is approximately 0.693 × A (e.g., 63A = ~43.7 kW). Consumption (Energi): The total amount of electricity used over a period of time. Measured in kilowatt-hours (kWh). Consumption is what you accumulate—it’s the integral of power over time. Example: a villa that uses electricity constantly throughout a month will accumulate, say, 1,500 kWh. Under power-based tariffs, consumption determines the variable transfer charge (öre/kWh). Formula: kWh = kW × hours Power (Effekt): The instantaneous rate at which electricity is being drawn at any given moment. Measured in kilowatts (kW). Power fluctuates throughout the day based on which appliances are running. Example: at 18:00 when cooking dinner and charging an electric car simultaneously, a household might draw 12 kW; at 3 AM when everything is off, it might draw only 0.5 kW. Under power-based tariffs, the peak power (specifically the average hourly power during peak hours) determines the power charge (effektavgift). Formula: kW = kWh ÷ hours The Key Distinction:

• Consumption (kWh): “How much total energy did I use?” → Determines transfer charges
• Power (kW): “How much am I using right now?” → Determines demand charges and breaker limits

Subscribed Power (Abonnerad Effekt): A customer declares their expected maximum power need from the grid for the coming period (typically one year). The DSO approves this subscribed power level based on the customer’s historical usage or stated requirements. This replaces the physical limitation of fuse size with a contractual agreement. The subscribed power is typically calculated as the average of the customer’s highest monthly power peaks from the previous year. Under power-based tariffs, a fixed annual or monthly fee is charged based on the subscribed power level (e.g., kr/kW/year). Important: If a customer’s measured power exceeds their subscribed power (called “overtrading” or övertrassering), they are charged a penalty fee -typically double the normal power charge - on the excess power. Example: a customer subscribes to 200 kW but one month has a peak of 220 kW; they pay the overtrading penalty on 20 kW. This model provides flexibility: customers can adjust their subscribed power level annually based on changing business needs, but must manage peaks within their declared limit or face financial penalties. Subscribed Power vs. Fuse Size:

• Fuse Size (legacy): Physical safety limit; exceeding it causes immediate disconnection (circuit breaker trips)
• Subscribed Power (modern): Contractual limit; exceeding it causes financial penalty but allows continued operation

Voltage Level (Spänningsnivå): The electrical potential at which a customer’s connection point is connected to the grid. Different voltage levels serve different customer sizes and geographic coverage areas. Low voltage (lågspänning): 230V single-phase or 400V three-phase. Used for residential customers, apartments, small businesses, and rural areas. Typical DSO connections. High voltage (högspänning): 6 kV, 10 kV, 20 kV, or higher. Used for industrial facilities, large commercial buildings, and data centers. Connected to regional grid operators or local DSOs. The voltage level significantly affects tariff structure and cost. Low-voltage customers typically pay simpler tariffs with fewer components (fixed fee + transfer charge + power charge). High-voltage customers face more complex tariffs with multiple components, including annual power subscriptions, distance-dependent fees, reactive power charges, and network loss compensation. Higher voltage levels generally have lower per-unit costs (kr/kW) but require sophisticated metering and contractual agreements. Example: a high-voltage industrial customer at 20 kV pays regional grid tariffs with rates like 200 SEK/kW/year, while a residential customer at 400V pays local DSO tariffs with rates like 45 kr/kW/month. Important: The Engrate API returns tariffs for low-voltage (DSO) and high-voltage (local or regional grid) connections based on the customer’s connection point. Active Energy (Arbetande Energi): The electrical energy that performs useful work—heating, lighting, motor operation, etc. Measured in kilowatt-hours (kWh). This is the energy customers typically think of when they talk about “electricity consumption.” All DSO tariffs charge for active energy consumed via the transfer charge (överföringsavgift) in öre/kWh. Example: a household that heats water, cooks dinner, and charges an electric car consumes active energy (kWh) which is measured by the meter and billed at the transfer rate. Reactive Energy (Reaktiv Energi): Electrical energy that oscillates back and forth in the circuit without performing useful work. Caused by inductive loads (motors, transformers, fluorescent lights) and capacitive loads. Measured in kilovolt-ampere-reactive-hours (kVArh) or simply reactive power in kilovolt-ampere-reactive (kVAr). Reactive energy causes grid stress by increasing peak demand without producing output, forcing DSOs and regional grid operators to invest in larger infrastructure. DSO/Regional Grid Operator Treatment: Residential customers typically don’t pay for reactive energy—it’s absorbed as part of grid operations. Industrial and high-voltage commercial customers are charged for excessive reactive power that exceeds a permitted threshold (typically 30–50% of active power). Charges range from 15–80 SEK/kVAr depending on voltage level and DSO. Example: a manufacturing plant with large motors may have a reactive power charge of 50 SEK/kVAr/month in addition to their active energy charges. Power Factor (Effektfaktor): The ratio of active power to total power, expressed as cos(φ) or as a percentage. A power factor of 1.0 (or 100%) means all power is active (no reactive waste). Industrial facilities with poor power factors (e.g., 0.85 or 85%) waste significant reactive energy and face higher tariffs. Improving power factor through capacitor banks or synchronous motors reduces reactive charges and improves grid efficiency.