The picture below shows a simplified version of the electricity market – in terms of physical transmission as well as the commercial structure.

Physically, the electricity passes through the various grid levels as it is transported from the power stations to the consumer. The electrical grid is a natural monopoly regulated by the Energy Markets Inspectorate.

On the commercial side, producers sell electricity – either directly or via the power exchange – to electricity traders, which in turn sell it on to the consumer. The market players carry out their commercial activities in competition.

Consumers pay for two separate services – the production and
handling of electricity on the commercial side, and the physical transport over the grid.

The many players and functions in the electricity market need to cooperate closely, ensuring that consumers not only receive a reliable supply, but can also buy their electricity in a market where there is free and fair competition.                                                          

The brochure "The Swedish Electricity Market and the Role of Svenska Kraftnät" describes the routines on the Swedish electricity market.Download in on our brochure page.