The electricity price outlook for continued, relatively low electricity prices for the rest of the year looks favourable.

The record level of three kroner per kilowatt-hour in Southern Sweden in August has been almost forgotten.

In October, the average cost had come down to around 80 öre, even lower than the same month last year. In fact, it was the lowest since July 2021.

Almost halfway into November, the average price is around 40-45 öre per kilowatt-hour in Southern Sweden (electricity area 4), which can be considered historically normal levels.

Higher up in the country, the price is lower.

In recent days, households have been able to recharge their electric cars or turn on electric heating in the house at very favourable terms. The average price during the day on Friday and Saturday has been two öre per kilowatt-hour.

Worst-case scenario avoided

Although prices probably won’t remain that cheap when the winter and the cold hit, the worst price shock has now passed.

There are several reasons why analysts expect somewhat more moderate electricity prices this winter.

Some are weather-related, such as the fact that Norway, after a lot of rainfall, has now sorted out its previous water shortage in the reservoirs in the south of the country.

Furthermore, the weather has been mild – and is expected to stay that way for quite a while.

Gas prices decreasing

Another decisive factor is that gas prices have fallen strongly in Europe (note: gas is largely used for electricity production).

The reason? Full gas stocks despite cuts in Russian gas imports. Right now, it is almost difficult to take in all the gas flowing into Europe.

“There are a lot of tankers (with liquefied gas) outside the ports waiting to be unloaded,” Johan Sigvardsson, an analyst at the electricity trading company Bixia, pointed out.