Electricity Price Disparity in Southern Sweden Threatens Jobs and Investments

Electricity prices in southern Sweden have surged to nearly four times the levels found in the north, significantly straining the regional economy and threatening up to 200,000 jobs. As of November 2025, the average spot price in the southernmost area reached 67.43 öre per kilowatt-hour, compared to about 17 öre in northern areas. This stark price difference results mainly from weather conditions, reduced local electricity production in the south, and the fact that three of Sweden's six nuclear reactors were offline for much of the year.

The division of Sweden into four electricity price zones, designed to manage grid capacity and incentivize production investment, has so far failed to increase southern supply despite its higher demand. Northern Sweden benefits from abundant hydropower and surplus electricity, leading to much lower prices. Consequently, many companies in the south are relocating investments to northern regions to avoid high energy costs, which has alarmed business leaders.

Johan Eklund, CEO of the Sydsvenska handelskammaren, warned that "if the situation remains unaddressed, up to 200,000 jobs could be lost in price zones 3 and 4 due to high and volatile electricity costs." Roger Bergström, CEO of Hylte Papers, expressed concern about the impact on industry, stating that "the entire industrial sector faces difficulties competing internationally" because of these elevated prices.

The government is studying the possibility of unifying the country's electricity price zones to mitigate this disparity, although Svenska kraftnät currently recommends maintaining the existing four-zone system. The southern business community continues to call for measures to equalize prices, citing the risk of long-term economic damage and job losses if the gap persists.