For members


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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For members


Pensions in the EU: What you need to know if you’re moving country

Have you ever wondered what to do with your private pension plan when moving to another European country?

Pensions in the EU: What you need to know if you're moving country

This question will probably have caused some headaches. Fortunately a new private pension product meant to make things easier should soon become available under a new EU regulation that came into effect this week. 

The new pan-European personal pension product (PEPP) will allow savers to take their private pension with them if they move within the European Union.

EU rules so far allowed the aggregation of state pensions and the possibility to carry across borders occupational pensions, which are paid by employers. But the market of private pensions remained fragmented.

The new product is expected to benefit especially young people, who tend to move more frequently across borders, and the self-employed, who might not be covered by other pension schemes. 

According to a survey conducted in 16 countries by Insurance Europe, the organisation representing insurers in Brussels, 38 percent of Europeans do not save for retirement, with a proportion as high as 60 percent in Finland, 57 percent in Spain, 56 percent in France and 55 percent in Italy. 

The groups least likely to have a pension plan are women (42% versus 34% of men), unemployed people (67%), self-employed and part-time workers in the private sector (38%), divorced and singles (44% and 43% respectively), and 18-35 year olds (40%).

“As a complement to public pensions, PEPP caters for the needs of today’s younger generation and allows people to better plan and make provisions for the future,” EU Commissioner for Financial Services Mairead McGuinness said on March 22nd, when new EU rules came into effect. 

The scheme will also allow savers to sign up to a personal pension plan offered by a provider based in another EU country.

Who can sign up?

Under the EU regulation, anyone can sign up to a pan-European personal pension, regardless of their nationality or employment status. 

The scheme is open to people who are employed part-time or full-time, self-employed, in any form of “modern employment”, unemployed or in education. 

The condition is that they are resident in a country of the European Union, Norway, Iceland or Liechtenstein (the European Economic Area). The PEPP will not be available outside these countries, for instance in Switzerland. 

How does it work?

PEPP providers can offer a maximum of six investment options, including a basic one that is low-risk and safeguards the amount invested. The basic PEPP is the default option. Its fees are capped at 1 percent of the accumulated capital per year.

People who move to another EU country can continue to contribute to the same PEPP. Whenever a consumer changes the country of residence, the provider will open a new sub-account for that country. If the provider cannot offer such option, savers have the right to switch provider free of charge.  

As pension products are taxed differently in each state, the applicable taxation will be that of the country of residence and possible tax incentives will only apply to the relevant sub-account. 

Savers who move residence outside the EU cannot continue saving on their PEPP, but they can resume contributions if they return. They would also need to ask advice about the consequences of the move on the way their savings are taxed. 

Pensions can then be paid out in a different location from where the product was purchased. 

Where to start?

Pan-European personal pension products can be offered by authorised banks, insurance companies, pension funds and wealth management firms. 

They are regulated products that can be sold to consumers only after being approved by supervisory authorities. 

As the legislation came into effect this week, only now eligible providers can submit the application for the authorisation of their products. National authorities have then three months to make a decision. So it will still take some time before PEPPs become available on the market. 

When this will happen, the products and their features will be listed in the public register of the European Insurance and Occupational Pensions Authority (EIOPA). 

For more information: 

This article is published in cooperation with Europe Street News, a news outlet about citizens’ rights in the EU and the UK.