An electricity bill can seem straightforward until you start comparing the details. Two contracts might both promise a low electricity price but differ significantly when surcharges, fixed fees, and terms and conditions are factored in. How do you compare electricity contracts in a way that actually makes a difference? Start by comparing the total cost for your specific household, not just the largest number in the advertisement.

For many, the electricity contract is something you choose when moving and then forget about. Reviewing it doesn't have to be complicated, but it pays to spend ten minutes on the right things. Here's a straightforward guide to what you should look at before making your choice.

Start by distinguishing between electricity grid and electricity trading

Your electricity cost normally consists of two parts. The grid fee goes to the company that owns the power lines where you live. You usually cannot choose that company yourself, as the grid is controlled by your area. This typically includes a fixed fee and a transmission fee.

The electricity trading agreement, on the other hand, is the part you can compare and switch. It concerns which company buys electricity for you and the terms they charge based on. When you switch electricity trading companies, the electricity in your outlets, the grid, or the risk of outages are not affected. You simply change who invoices for the electricity trading itself.

This is especially good to know if you are new to Sweden, helping a family member with a move, or managing a Swedish residence from the USA. Grid contracts and electricity trading contracts can be with different companies, and that is normal.

Compare prices correctly

The price that appears first is rarely the whole picture. An electricity contract might have a low price per kilowatt-hour (kWh) but a high monthly fee. Another might have a slightly higher kWh price but no fixed fee. Which is cheapest therefore depends on how much electricity you use.

Always look at three components simultaneously: the electricity price per kWh, the electricity supplier's surcharge per kWh, and the fixed monthly fee. The surcharge is an extra cost that the company adds on top of the purchase price. It may seem small but becomes noticeable for households with high consumption.

Say a contract has a monthly fee of SEK 49 and a surcharge of SEK 0.06 per kWh. For a smaller residence using 1,500 kWh per year, the monthly fee can be relatively significant. For a villa with electric heating and 15,000 kWh per year, the surcharge becomes more important. Therefore, no single electricity contract is best for everyone.

Also remember that the electricity bill contains more than just the electricity trading price. Energy tax, VAT, grid costs, and sometimes costs for origin guarantees can be shown separately. When comparing different offers, you should therefore compare the same components with each other, not pit a promotional price against a total cost from another bill.

Calculate your own annual consumption

Your latest electricity bill is a good starting point. Look for annual consumption or sum up the past twelve months' usage. If you've just moved and lack history, you can make a simple estimate based on housing type, heating, and number of people.

Apartments with district heating often have lower consumption than villas with direct electric heating or heat pumps. Electric car charging, pools, underfloor heating, and vacation homes can also change the picture. It's a good idea to use both a normal year and a year with slightly higher usage in your comparison. This way, you can see if a contract still seems reasonable when daily life changes.

Choose contract type based on how you want to manage price risk

When comparing electricity contracts, the contract type is at least as important as the fees. The most common options are variable price, fixed price, and hourly price.

Variable price suits many households

With a variable electricity price, your price follows market developments, often calculated as a monthly average for your electricity area. When the market price goes down, you generally get a lower price, but the cost can also rise during expensive months.

Variable price is often a practical choice for those who want a simple contract and can accept variations between months. It's particularly suitable if you don't want to plan electricity consumption hour by hour. But don't choose variable merely because it happened to be cheapest during a certain period. Next winter could be different.

Fixed price provides predictability, but may cost more

A fixed electricity price means that the price per kWh is locked for a specific period, for example, one or three years. You then know what the actual electricity price will be, which can feel secure if your household economy is sensitive to sudden cost increases.

The disadvantage is that the company includes a risk margin. If the market price falls, you'll be stuck with your higher fixed price until the contract expires. Therefore, check the binding period, any notice period, and what applies if you move. A fixed contract is not wrong – it's a choice for security over the possibility of benefiting from lower prices.

Hourly price can be beneficial if you can control usage

Hourly pricing follows the price hour by hour. This can suit you if you can shift electricity usage to cheaper times, for example, by charging your car at night, running the dishwasher later in the evening, or smartly controlling your heat pump.

However, for those who use the most electricity when prices are highest, hourly pricing will not automatically be cheaper. You also need an electricity meter that can measure consumption per hour and a daily routine where you genuinely want to or can change habits. Don't choose hourly pricing just because it sounds modern – choose it if you can benefit from the flexibility.

Check the terms and conditions before you decide

A good price loses its value if the terms are unclear. In particular, read what happens after a campaign period. An introductory price might be good, but check the regular monthly fee, surcharge, and contract type once the discount ends.

Also look for the binding period and notice period. A contract without a binding period gives you the freedom to switch if prices or needs change. A fixed-term contract can be suitable if you have deliberately chosen a fixed price, but you should know if there are costs for early termination.

Eco-labels and the origin of the electricity can also play a role. Some prefer to choose renewable electricity or a contract with specific origin guarantees. This is a perfectly reasonable choice, but compare what it actually means and if it incurs an extra cost. The wording might be similar between different offers, while the content can differ.

Don't forget the electricity area

Sweden is divided into several electricity areas, and the electricity price can vary depending on where the residence is located. An offer that seems cheap in southern Sweden might not yield the same result in northern Sweden. Always provide the correct postcode or electricity area when comparing.

This also applies to holiday homes. A house that stands empty for parts of the year might have low consumption but still incur a fixed monthly fee. If you have both a permanent residence and a summer house, it might be worth reviewing the contracts separately instead of choosing out of old habit.

A simple method when comparing electricity contracts

Gather your annual consumption and your electricity area. Then note down each contract's price per kWh, surcharge, monthly fee, contract type, and any binding period. Next, calculate an approximate annual cost, not just the monthly promotional price.

Then ask yourself what you prioritize. If you want the greatest possible predictability, a fixed price might be relevant. If you want to follow the market without thinking about hours, a variable price is often simpler. If you can control charging, heating, and other major loads, hourly pricing might be interesting.

It's a good idea to save the date when you sign the contract and set a reminder a few weeks before any campaign or binding period expires. This gives you the chance to make a new choice calmly, instead of ending up with a standard price due to pure forgetfulness.

An electricity contract doesn't have to be perfect forever. The best choice is one that suits your home, your consumption, and your daily life right now – and that you fully understand before the first bill arrives.