Guide: Review of industrial electricity contracts and hidden margins
Industrial companies often negotiate large contracts – and therefore assume margins are tight. The reality shows that hidden margins exist even in complex portfolio contracts.
Why companies lose oversight in industrial contracts
Portfolio and management contracts are often structured with several layers: trading mark-ups, risk premiums, balance responsibility and reporting fees. Each layer is small – but the sum becomes significant. For an industry consuming 4 GWh per year, it is not uncommon for several hundred thousand SEK to be at stake, which could have been renegotiated.
Margins often overlooked during internal review
- Trading mark-ups on hedging. Often set in öre/MWh but not always clearly stated.
- Fee for portfolio management. Calculated as a percentage of volume rather than actual work input.
- Balance fee. Sometimes double-accounted – both in the main contract and as a separate item.
- Reporting fees. Many pay for reports that are never read.
Tips before you renegotiate
- Request a complete cost specification for the past 12 months.
- Ask the supplier to report the margin in öre/MWh – not as a total amount.
- Compare your prices against the forward curve on Nasdaq Commodities for the corresponding period.
- Verify that any hedging matches your actual production forecast.
Would you like a personal review?
This guide provides free knowledge from Savera and is intended to give you concrete points to check on your own. We are an independent advisor in corporate electricity – if you would like us to look specifically at your contracts, invoices, or consumption, you are welcome to book a free initial consultation.
Tip: Always ask for a separate margin line in the next offer – it makes comparisons with other suppliers easier.