The electricity market in Sweden has changed in recent years and especially since the deregulation of the electricity market in 1996 meant that electricity prices became increasingly competitive. In addition, a decision by the EU Commission in 2011 led to a division into four different electricity areas in Sweden (price zones SE1-SE4), which affect electricity prices in the different areas. The purpose of this thesis is to examine whether or not the price of the electricity for the specific area SE3 (South Sweden) is elastic or inelastic. This research will examine how sensitive the electricity demand is to price changes as well as what variables explain and will affect the electricity demand. Data were used over the years 2013-2020. The log-log specification is estimated by OLS and TSLS models, respectively. Our findings show significant but rather small price elasticity. The variable with the most effect on demand was temperature, which indicates that demand increases during colder periods such as during wintertime.