Cheaper electricity this summer – the new Finnish giant reactor affects

ENERGY

The crisis signals on the electricity market are gone – at least for now. Expect an electricity price, excluding taxes and surcharges, of around 50 öre this summer.

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Just in time for new electricity subsidies to be paid out to households and businesses soon, the electricity crisis has subsided.

So far in May (through May 18), the average price is between 45 öre in the north to 75 öre per kWh (kilowatt hour) in southern Sweden, according to the electricity exchange Nord Pool. These are the lowest prices for a long time, in the southern half of the country you have to go back a couple of years to find lower monthly prices – the price that governs most people’s electricity bills, that is, all those with variable contracts.

“No crisis prices”

And the rest of the year also looks fairly promising, at the moment anyway. According to the electricity contracts traded for the summer months, prices are expected to be between 42 öre in Norrland and 67 öre in the far south. Towards the end of the year, the price is expected to rise slightly when it gets cooler again, but not very much, not like last winter, up to just under the kroner for a kilowatt-hour in southern Sweden.

– No crisis prices are expected, says Björn Björnson, analyst at the electricity company Godel.

Compared to last summer, significantly lower prices are expected, at least in the southern half of the country, electricity areas 3 and 4. In August last year, the all-time monthly record was broken in southernmost Sweden, with an average price on the electricity exchange of just over three kroner per kWh.

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But of course there are uncertainties, including how hot and dry it will be in Europe. A hot summer draws up electricity consumption when many people run the air conditioner at high pressure. In addition, it affects hydropower in Southern and Central Europe negatively, Björn Björnson points out. Maintenance of nuclear power can also offer negative surprises. And before the winter, it will be decisive how the gas situation in Europe looks like.

Finnish nuclear power

Recently, the price differences between Sweden’s ends have increased again. Magnus Thorstensson, electricity analyst at Energiföretagen sees an important reason.

– The new Finnish nuclear reactor Olkiluoto 3 affects mycket.

It spills over into Central Sweden, Finnish electricity is imported more often now, it was less common in the past.

– It strengthens the balance of power in the north-eastern Nordic region, he says, noting that the Finns now often have the cheapest electricity in the entire Nordic region.

On top of the stock market prices, the electricity company’s surcharge, electricity tax, VAT and grid charge of over one kroner per kWh are added.