Industrial companies

Capacity charges in industry: start-up, subscriptions, reactive power

Industry's capacity subscriptions were not affected by the 2026 halt. Here is how to read the tariff, find the peak in production and calculate the right subscribed capacity.

16 October 20266 min readBy Oliwer Brewitz

The halt changes nothing for industry

When the government halted the requirement for capacity charges (effektavgifter) in March 2026, it in practice concerned smaller connections. An industrial company almost always has a capacity subscription (effektabonnemang) at low voltage above 63 A or at high voltage, where capacity has long been a separate item on the invoice. It remains. Background is available in Capacity charges for businesses in 2026.

For industry, the capacity component is often a large share of the grid cost, and it is driven by a handful of hours per year. That makes it one of the few costs on the electricity bill that production itself can influence.

How the tariff is structured at high voltage

High-voltage tariffs differ more between grid companies than low-voltage tariffs. The price lists we have reviewed include, among other things:

  • an annual subscribed capacity in kr/kW that you choose in advance
  • utilised capacity compared with the subscription, for example as the average of the two highest hours from different months or the two highest hours per week
  • overrun for the portion exceeding the subscription, in one example 200 % of the ordinary price
  • a separate peak load capacity or peak load charge for winter weekdays during the day
  • reactive power above a certain share of subscribed capacity, often 50 %
  • rules for when the subscription may be changed, in one case no later than December ahead of the next calendar year

Read your own grid company's terms of application. Two industrial companies with the same load profile can pay completely different amounts depending on which rule applies.

Where the peak occurs in production

Industrial peak loads often have three sources:

  • Start-up. On Monday mornings and after production stoppages, lines, furnaces, compressors and ventilation start within the same hour. A furnace heating up draws more than in operation.
  • Simultaneous loads across departments. Two departments planning separately can place their heaviest operations in the same hour without anyone noticing.
  • Season. Electric space heating, process cooling in summer or drying can add an extra load on top of production.

Also check what happened during the hours when the peak was set. A peak caused by test-running backup power and handing the load back to the grid all at once is a routine issue, not a production issue.

Worked example: start-up and subscription

Example: An industrial company using 4,000,000 kWh per year has a subscribed capacity of 1,100 kW. The hourly values show that the highest hour during the year was 980 kW, on a Monday at 06–07 when two furnaces of 150 kW each were heated up at the same time. All other hours are below 850 kW.

We assume a capacity price of 550 kr per kW per year and overruns at double the price, 1,100 kr per kW.

  • Now: 1,100 kW × 550 kr = 605,000 kr per year.
  • Subscription lowered to the actual peak: 980 kW × 550 kr = 539,000 kr. Saving 66,000 kr.
  • If the second furnace is started only once the first has reached temperature, the peak drops to roughly 850 kW. With a margin of 50 kW, the subscription becomes 900 kW × 550 kr = 495,000 kr. Saving compared with today 110,000 kr.

The margin is needed because a single hour above the subscription costs double. With 900 kW subscribed and an unplanned peak of 950 kW, the overrun becomes 50 kW × 1,100 kr = 55,000 kr, which takes a large part of the saving. So lower the peak first, follow up over a winter and adjust the subscription afterwards.

Reactive power

Motors, compressors, welders and older lighting draw reactive power. If it exceeds a certain share of the subscribed active power, often 50 %, it costs extra. A fault in the compensation equipment can generate fees for several months before anyone reacts. In depth: What is reactive power?.

What you can do yourselves

  1. Get the terms of application for your tariff and write down how utilised capacity is calculated, when peak hours apply and when the subscription may be changed.
  2. Extract hourly values for twelve months and mark the ten highest hours. Match them with the production plan.
  3. Draw up a start-up sequence for Mondays and after stoppages, where the heaviest loads start one after another.
  4. Let production planning see capacity, not just kWh. Adding a capacity ceiling to the planning is often enough.
  5. Check reactive power on every invoice.
  6. Calculate subscribed capacity as in the example, using your own prices, and put the last change date in the calendar.
  7. Before new machines, electrification of process heat or charging for forklifts and trucks: calculate the capacity impact before the decision, not after the first invoice.

Energy tax is a separate matter. Electricity used in the manufacturing process may entitle you to a refund down to 0.6 öre/kWh, but it does not affect the grid fee. Read more in Energy tax refunds for industry.

If you would like help reading your tariff and calculating the subscription, Savera can carry out an independent review.

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