Electric grid and electric trade, what is the difference?

In order to have access to electricity, you need two agreements, one for the electricity grid (elnät) and one for electricity trade electricity trade (elhandel). Here, we explain the difference between them and what you pay for.

Två kvinnor syns bakifrån när de tittar på tv hemma

What is electricity trade (elhandel)?  

Nord Pool, the Nordic electricity exchange, is the shared marketplace for trading electricity in the Nordic region. This is where the electricity producers sell their electricity to electricity supply companies. The price on the exchange is governed by supply and demand in exactly the same way as on a normal share market. The electricity supply companies then sell the electricity on to you and to other customers on the electricity grid (elnätet). You buy your electricity from an electricity supply company by entering into an agreement.

The electricity market (elhandelsmarknaden) in Sweden is deregulated, which means that you can choose whichever electricity supply company you want. In fact, you can keep the same electricity supplier no matter where in Sweden you may move to. If you have not made a choice when moving to a new grid region, you will automatically receive a designated contract (anvisningsavtal) agreement from your power transmission and distribution network company. These contracts are a little more expensive, so it is a good idea to choose a different agreement that offers you a better price as soon as possible. 

Person tar det lugnt i hemmet

What is the electricity grid (elnät)? 

You cannot choose your power transmission and distribution network company, as it will have a monopoly in the area where you live. Power transmission and distribution network companies are responsible for the infrastructure, i.e. the cables and other equipment needed to deliver electricity to your home. It would be extremely expensive and complicated if different power transmission and distribution network companies had to lay their own cables to customers spread all over the country. That is why the Swedish Parliament has decided that power transmission and distribution network companies are to have exclusive rights to the distribution of electricity in their areas.

Mjölby-Svartådalen Energi AB (MSE) manages the local electricity grid on behalf of the wholly owned subsidiary Mjölby Kraftnät AB (MKN). Visit natomraden.se to see which electricity grid area (elnätsområde) you belong to (the information is in Swedish).

If you are moving to or from an address included in our grid area, you need to report this to us as soon as possible so that we can draw up a new contract for you – or terminate the old one.

Grafik över en kunds elkostnad på engelska

What makes up your electricity cost?

Your electricity cost is divided into two parts: the cost of the electricity you use, and the power transmission and distribution network fee (elnätsavgiften). The power transmission and distribution network fee (elnätsavgiften) is, in turn, divided into three parts.

The cost of the electricity you use 

You pay this cost to the power transmission and distribution network company you have chosen.

The three parts of power transmission and distribution network fee (elnätsavgiften)

The power transmission and distribution network fee (elnätsavgiften) is monitored by the Swedish Energy

Markets Inspectorate and consists of:

  • A fixed annual fee that has to do with the cost you pay to have electricity connected to your residence.
  • A variable electricity transmission fee that has to do with the cost of having electricity delivered to your home. This fee is based on the amount of electricity you have used. 
  • Energy tax (energiskatt) which comprises the taxes and duties payable to the Swedish state – and which you must pay by law.  

You pay this cost to your power transmission and distribution company to ensure that electricity is delivered to your home. Your power transmission and distribution fee (elnätsavgift) is based on the size of your main fuse (huvudsäkring) and on how much electricity we have transmitted to your home.

* The picture presents an example of a customer’s electricity cost based on annual energy consumption of 20,000 kWh and a variable (rörligt pris) agreement. The costs payable to the electricity supply company and to the power transmission and distribution company each account for 25 percent of the total costs of the electricity. Taxes, VAT and the renewable energy certificate duties make up the remaining 50 percent of the total cost.

Source: The Swedish Energy Agency

To find out more about the cost of electricity to customers, see the Swedenergy (Energiföretagen Sverige) website.

What does the power transmission and distribution network fee (elnätsavgiften) include?  

The power transmission and distribution network fee (elnätsavgiften) comprises a number of things designed to make your everyday life easier:

  • We make sure that the electricity you purchase from a power transmission and distribution company is carried via our network of cables to your home. 
  • We perform ongoing maintenance and future-proof the electricity grid (elnätet) so as to minimise interruptions. 
  • You can track your consumption on My Pages (Mina sidor) (the information is in Swedish). 
  • You can quickly access help in connection with power outages, 24 hours a day, every day of the year. We always have skilled personnel on hand to deal with disruptions to operations. We also pay “outage compensation” if you are without power for more than 12 consecutive hours.
  • You can subscribe to information about operations by SMS or email, and you can check the current status online. Log into My Pages (Mina sidor) (the information is in Swedish) to subscribe to information about interruptions to operations. 
  • We help you to switch electricity supply company. 
  • You can access free help in monitoring tree felling and to mark cable routes in the ground.

How does the electricity market work?

The electricity market in Sweden consists of a great many parts that are all linked to one another. For us to maintain a reliable supply of electricity, we need to generate electricity in all parts of Sweden, to have a well-functioning electricity market, and to be able both to import and to export electricity. Click here to read about how the electricity market functions.