Sweden Electricity Prices Hit Two-Year High During Cold Snap

Electricity prices in Sweden have surged to over 2 kr per kilowatt-hour following extreme cold and the opening of a new power cable to Finland. Oskar Hjertström and Martina Tamrell in northern Sweden reported a monthly bill of 12,629 kr after temperatures dropped to -38 degrees Celsius. The Energy Markets Inspectorate will mandate new grid effect fees by January 2027 as economist Joakim Ottander advises households to reduce peak energy usage.The Hjertström Tamrell family saw their energy consumption nearly double to 5,560 kWh while prices in the north reached levels typically seen only in southern regions. Data from Nord Pool indicates that these are the highest costs recorded since early 2024 with stagnant wind production further straining the national grid.Government high-cost protection failed to trigger for many northern residents because average monthly prices remained below the required 1.50 kr per kilowatt-hour threshold despite the daily spikes. Joakim Ottander warns that charging electric vehicles at high power contributes to effect peaks that can significantly inflate household bills regardless of the base electricity price.