This is called an effect tariff. Many electricity grid companies have already introduced it, including Göteborgs Energi, but among the three largest, Vattenfall, Eon, and Ellevio, the latter will be the first. 375,000 villa customers (apartment customers are not affected yet) will have to get used to a new way of thinking.
We believe in the idea, and also because there are regulations that we must follow, says David Bjurhall, head of pricing and regulatory issues at Ellevio.
Capped Peaks
By 2027, all electricity grid companies must have switched to effect tariffs. The purpose is to spread out electricity consumption. This will be achieved by charging more for peak power. Running all the household's power-hungry appliances at the same time will cost extra.
Will households respond to the price signal? One cannot be certain. But studies of other electricity companies that have gone ahead show that peak power is reduced by between 2 and 7 percent. Ellevio's own pilot study with 2,000 customers shows that simultaneous power consumption decreased by 3.5 percent, according to David Bjurhall.
For the customer, it can be tricky to know exactly how to act.
For the vast majority, it will mean roughly the same cost, says David Bjurhall.
A Few Hundred Kronor
But this is how it can work out: Those who use a lot of electricity but spread it out more over the day can win a few hundred kronor a month. On the other hand, those who use little electricity but most of it at the same time will lose out on the new system.
A clear example. Those who go out to a cold summer cottage and turn on the electric heaters full blast can be penalized with expensive peak power on their electricity grid bill.
Then it might be better to warm up the cottage step by step, says David Bjurhall.
Half of the electricity grid fee will still be a fixed cost, but 45 percent will depend on how well the customer adapts their consumption. It is the three highest peaks per month that set the variable price, and the peak is determined by consumption during one hour. Turning on a power-hungry kettle for a few minutes doesn't make much difference. However, running the washing machine and vacuum cleaner for an hour at the same time has a much greater impact.
To make it even more complicated. In parallel, Ellevio, like several other companies, is increasing the electricity grid fees, by six percent in Ellevio's case. So, those who manage to keep their electricity grid fee unchanged next year can feel like winners on the new system.
The two other large electricity grid companies say they have not decided when they will switch to effect tariffs.
Today, Ellevio, in addition to the fixed fee, charges for the amount of electricity transferred in the lines during a month. With the effect tariff, it is the peak power that forms the basis for the variable fee, where the total consumption/electricity transfer only makes up a smaller part.
The effect tariff can be likened to congestion pricing in traffic. It is more expensive to drive your car in and out of the tolls in Stockholm during rush hour compared to evenings and weekends when it is free. The purpose may not be exactly the same, but if fewer people drive their cars when everyone else does, traffic flow improves.
Then the electricity grid, or roads, can be used more efficiently. Fewer new electricity grids/roads are needed.
The electricity grid fee should not be confused with the electricity price, which is invoiced separately by an electricity trading company.
The electricity grid fee will consist of half a fixed cost, about 45 percent of the effect fee, and the rest of the electricity consumption.
The effect is measured as the average effect, which means the average of your total electricity consumption during one hour.
The effect fee is based on the average of the three highest peak power, i.e., the three hours with the highest average effect, distributed over three different days during the month.
Every day between 10 pm and 6 am, it is also cheaper to use the electricity grid. Then, only half of the peak power is counted.
Source: Ellevio
