This is not correct, new contracts are not arbitrary. They are determined by the "bruksvärdeshyra". (https://www.hyresgastforeningen.se/stod-och-rad/hyra/vad-ar-...)
I checked the laws a bit, the utility value is only mentioned for "disagreements" and the comments explicitly mentions raises as the source for disagreements. Thus when signing an initial contract (as i mentioned) the landlord is free to set whatever they feel like since a tenant would have to agree to get the apartment.
In practice (not by law) landlords are supposed to give a portion of their available stock to the common queue systems, those apartments seem to follow the utility value with some adjustment for location.
However a few years back I was in a separation and since living in Stockholm also a bit desperate and looked at the private landlord queues, the prices were far higher and since I would agree to that initial pricing it would supercede the utility value. Needless to say, I quickly pivoted to buying since that's cheaper in the long run.
Google is translating that as "utility value rent," and it appears to be something calculated by a committee based on the "value" from the tenant's point of view.