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ENERGY

Sweden’s electricity rebate: Here’s how much cash you’ll get back on your bills

Here's our guide on how much compensation households in Sweden will get for their record-high energy bills this winter.

Sweden's electricity rebate: Here's how much cash you'll get back on your bills
The Swedish government has pledged to offer a cash boost to households affected by high electricity bills. Photo: Fredrik Sandberg/TT

The Swedish government in January announced proposals to offer a cash boost for electricity bills in December, January and February.

Due to historically high energy prices in Sweden (and Europe) some households saw their December bill more than double compared to last year, in some cases adding up to increased costs of thousands of kronor. Prices have so far been going down in January, however.

Negotiations between the government, electricity companies, authorities and parliament are complete, so it is now possible to see just how compensation is going to be allocated.

Who is eligible for the compensation?

The compensation will be based on consumption rather than income, with the maximum offered to those using more than 2,000 kWh per month. The maximum amount of cash back will be 2,000 kronor per month ($223), so it will be capped at a total of 6,000 kronor.

Households that consume less electricity than 2,000 kWh per month will also be able to get money back, but not as much.

To receive any form of compensation, a household must have used at least 700 kWh per month. If this is the case, users will receive 100 kronor for that month.

Here is a breakdown of the scale:

700-899 kWh: 100 kronor per month

900-999 kWh: 200 kronor per month

1,000-1,099 kWh: 300 kronor per month

1,100-1,199 kWh: 400 kronor per month

1,200-1,299 kWh: 500 kronor per month

1,300-1,399 kWh: 700 kronor per month

1,400-1,499 kWh: 900 kronor per month

1,500-1,599 kWh: 1,100 kronor per month

1,600-1,699 kWh: 1,300 kronor per month

1,700-1,799 kWh: 1,500 kronor per month

1,800-1,899 kWh: 1,700 kronor per month

1,900-1,999 kWh: 1,900 kronor per month

Over 2,000 kWh: 2,000 kronor per month

The fact that it will be based on consumption also means that it will not take into account the actual cost of your electricity bill. Electricity prices are generally higher in southern Sweden than in northern Sweden, but they will both get the same level of compensation.

The compensation will be handed out regardless of whether you have a fixed-rate or variable-rate contract with your electricity supplier. The latter usually works out cheaper in the long term, but is more affected by fluctuations – which means that people with a variable-rate contract will have been hit much harder by the record-high prices this winter, unless they had already prepared by saving up money in better times.

The compensation can be paid out to apartments or houses, but in practice it is more likely that houseowners, who usually consume more electricity, will be covered by the proposal. Many people in apartments pay their electricity bills only through their housing association fee.

According to the government’s estimate, around 2 million households across Sweden will be eligible for the compensation, but it is not entirely clear exactly who will be able to get it. “Not everyone will get compensation. Generally those with detached homes or small homes which are heated by electricity will be covered by this proposal,” said Finance Minister Mikael Damberg when he unveiled the plans.

How do you claim cash back on your energy bill?

You will not claim it back yourself. Compensation will be paid out automatically by electricity providers to eligible households in Sweden.

Funds will be available to electricity providers at the end of February at the earliest, after a parliamentary vote on whether to alter the budget to include this compensation is carried out.

This means that users are unlikely to receive compensation before March, so it won’t help you pay your December bill right now, and you won’t get a lower bill for January or February.

The date at which users receive compensation will also differ depending on which energy company they use, as energy companies must administer compensation handouts individually.

Member comments

    1. Moving tax rates has much bigger implications than a one time rebate.

      I’d much rather have seen an announcement that the closed reactors at Ringahls are reopening along with plans for a new NorthSouth interconnector. Long term security instead of feel good sticky plasters.

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2022 SWEDISH ELECTION

Sweden’s Moderates call for state to foot private energy bills

The opposition Moderate Party has proposed that the government contribute towards households' electricity bills this winter, as electricity prices are expected to rise.

Sweden's Moderates call for state to foot private energy bills

The party is proposing a high-cost protection or högkostnadsskydd similar to that found in Norway, where the state will commit to covering a percentage of all costs over a certain figure.

It is not yet clear how the system would work, but the Moderates’ finance spokesperson, Elisabeth Svantesson, said it the government should set a price threshold, above which the government would shoulder the majority of any extra cost. 

“You could expect the state to pay for 75 percent of the cost of everything over one krona per kilowatt hour,” she suggested, adding that a one krona threshold would cut around 6,000 kronor off the energy bill of an average family in Norrland.

“We can’t completely protect the consumer, but we can make it easier,” she said. “No one should be forced to leave their home this winter because of an electricity bill.”

The cost to the state, if this model were to be adopted, would be around 15 billion kronor for a three-month period, she added. 

The Moderates suggest financing the proposal in a number of ways, including taking funds from labour market policy measures which are not currently used, the klimatklivet – a programme providing investments for climate-friendly initiatives, as well as from profits generated by state-owned Swedish power company Vattenfall.

In addition to this, the Moderates are pushing for expansion of Sweden’s nuclear power production, as well as increasing the discount on building solar panels from 15 to 20 percent.

Svantesson also proposed that this discount be expanded to include other environmentally friendly alternatives, such as the installation of air source heat pumps.

“It would both lower electricity consumption and increase electricity production,” she said.

Prime Minister Magdalena Andersson is open to the suggestion, stating that her party would “study the proposal very carefully”.

“We have shown in government during the spring that we are prepared to support households during this difficult time for many,” she said, with a caveat. “It is important to say that we will not be able to compensate for every price increase caused by the war in Ukraine.”

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