In Brief

  • Sweden replaces the current Electricity Act with two new laws to modernize the power grid.
  • Grid operators receive clearer system responsibilities aligned with EU regulations.
  • Assigned electricity contracts will be replaced by a supplier of last resort system.

Sweden is introducing a major regulatory overhaul of its power grid by replacing the outdated Electricity Act with two brand-new laws. The reform aims to align Swedish legislation with EU standards, clarify grid operators’ responsibilities, and secure the national electricity supply. These changes will directly impact how electricity is distributed and how consumer contracts are managed across the country.

Modernizing the Swedish Power Grid

The Swedish parliament is set to approve a comprehensive modernization of the country’s electricity legislation. The current Electricity Act will be phased out and replaced by two new frameworks: the Electricity Market Act and the Act on Electrical Lines. This legislative shift is designed to meet modern energy demands and ensure compliance with EU law.

Clearer Responsibilities and New Consumer Protections

Under the new legislation, companies operating the power grid will have their system responsibilities explicitly defined. Operational security tasks for the national grid, previously managed by a specific government authority, will transition directly to the transmission system operator.

Furthermore, the traditional system of ‘assigned electricity contracts’—which often resulted in high costs for passive consumers—will be abolished. Instead, a new system featuring a ‘supplier of last resort’ will be introduced to guarantee continuous electricity supply under fairer terms.

The main body of the new laws is scheduled to take effect on 1 January 2027, while the specific provisions regarding the supplier of last resort will enter into force on 1 July 2027.

Who is affected?

Individuals

  • Electricity consumers will benefit from the removal of expensive assigned contracts, transitioning instead to a more secure supplier of last resort system.

Businesses

  • Electricity grid companies will face new terminology and clearly defined system responsibilities in line with EU standards.
  • Electricity suppliers must adapt to the new rules regarding the supplier of last resort framework starting in mid-2027.