Vattenfall increasing variable energy rates on January 1

Energy group Vattenfall will increase its variable rates for electricity and gas as of January 1. The extremely high energy prices on the wholesale market are behind the increase, the group said in a statement. Prices rose sharply, especially in August and September. Thanks to financial support from the government for the price cap, the increase will be limited for most customers, the Swedish company stressed.

Vattenfall did not mention exact amounts because several factors, like tax credits and network management costs, are still uncertain. But the expectation is that the bill will increase by around 30 euros for about half a million customers. Their energy usage exceeds the price cap on electricity and gas. The new rates apply to consumption above the price cap.

Vattenfall warned this spring that the rapidly rising prices in the purchase of energy would have consequences. “We have been pushing for government support to protect our customers from further rising prices and to provide them with certainty. The price cap announced by the government, which is due to come into effect on January 1, will help with this,” Vattenfall said.

According to Vattenfall, the current fall in energy prices does not yet outweigh the price increases this summer. At that time, Vattenfall was already purchasing energy for the winter. If prices go down for a longer time, the energy group expects to also lower the rates.