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Power tariffs – what are they and how do they affect the manufacturing industry?

April 3, 2025

Energy costs are a major challenge for the manufacturing industry in the Nordics. In the coming years, changes will be introduced in how electricity network fees are calculated, in the form of so-called power tariffs. For companies with high electricity usage, this means a new set of rules that will directly affect costs. This article explains what power tariffs are, the changes ahead – primarily in Sweden – and how they will impact large manufacturing companies from a cost perspective. We also explain why not having control over your power usage can become expensive, and why continuous, high-resolution measurement is the key to success.

What Are Power Tariffs?

Power tariffs mean that you pay for the use of the electricity grid based on power (kW) – that is, how high the simultaneous load is – instead of only the total energy (kWh). Unlike a standard energy tariff (öre per kWh), where the cost depends on how many kilowatt-hours are consumed, the power tariff is affected by how high the power draw is during short periods. A single sharp power peak can therefore drive up costs, even if total energy consumption is not particularly high.

Upcoming Changes in the Nordics (Primarily Sweden)

Throughout the Nordic region, we are seeing a clear trend toward the introduction of power tariffs, with Sweden leading the way through concrete regulations. The Swedish Energy Markets Inspectorate (Ei) has decided that all Swedish electricity network companies must implement a pricing model that includes a power fee by January 1, 2027, at the latest. Several grid companies in Sweden already have some form of power tariff, and the rest are expected to follow within the next few years.

 

The underlying driver is the increasing electrification of society. When many people use a lot of electricity simultaneously, power peaks occur that put stress on the grid. Power tariffs are intended to provide customers with more accurate price signals – so they can shift their electricity use to hours of lower demand. In this way, the existing grid capacity can be used more efficiently, and costly grid expansions can be partially avoided.

How Are Manufacturing Companies Affected?

For large manufacturing companies with high electricity consumption, power tariffs may result in the company’s usage patterns becoming a decisive factor in cost levels. Two factories with the same annual energy consumption (kWh) can have completely different electricity network costs depending on their power profiles. The factory that manages to smooth out its electricity use over the day and week may, in some cases, receive lower fees, while a competitor that draws a lot of electricity during peak load times may incur higher costs.

 

Power tariffs are often charged based on the highest measured power (kW) per month. This means that individual energy-intensive events – such as starting up several heavy processes at the same time – can cause a power spike that significantly increases costs. For energy managers and executives, it is therefore important to analyze the company's power needs and avoid unnecessary peaks by, for example, spreading out energy-intensive processes over time.

Why Not Keeping Track of Power Usage Can Be Costly

Failing to actively monitor and manage your power usage can become expensive under the new system. Historically, the focus has been on minimizing energy consumption (kWh), but now the simultaneous usage (kW) is also a critical factor. Things that used to be non-issues, like starting all heavy equipment early in the morning, can now result in high fees.

 

A Few Concrete Examples:

Unexpected cost spikes

Individual power peaks can drive up the month's costs, which is often only noticed when the invoice arrives.

Unnecessary fees

Without active monitoring and load control, you're likely paying more than necessary. Using the grid during peak load hours is especially expensive.

Risk of poor investment decisions

Without power data, you might over- or under-dimension your power usage. It will become more profitable to buy equipment with smoother loads and avoid high peak demands.

Continuous Measurement – The Key to Control

The only effective way to manage power tariffs is to measure electricity usage accurately and continuously. The new smart meters enable high-resolution measurements (e.g., every 15 minutes), providing clear data on when and where power peaks occur.

To succeed, you should:

1.
Use frequent measurement intervals

Collect detailed consumption data, ideally for different parts of the facility.

2.
Analyze usage patterns

Identify which processes or machines contribute most to peaks. Set alarms on these and gain the ability to act before it’s too late.

3.
Act based on data

Reschedule operations, stagger machine startups, use energy storage or other load management methods to avoid power peaks.

It Will Be Expensive Not to Measure Power

Power tariffs are here to stay and will affect all major electricity consumers in the Nordics. For energy managers and leadership teams, the message is clear: understand what power tariffs mean and work proactively to smooth out power peaks. Companies that measure, analyze, and optimize their power usage can keep costs under control, while those who ignore the development may face unexpected cost increases.

Sources

Energy Market Inspectorate (Ei) – Requirements for new power tariffs.

Energy companies – Information about power charges and network regulations.

Gävle Energi – Examples of power tariffs and how they are applied.

Statistics from Ei (2025) – Percentage of electricity network companies that have introduced an impact fee.

Examples from Finland and Norway – International experiences with power tariffs.

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