Two days ago, and with so little fanfare that I didn’t hear or read about it until today, a new electricity transmission cable was turned on. The Southwest Direct Electrical Current Link – SydVästlänkens likströmsförbindelse – is great news! Running underground to Barkaryd, and from Barkaryd to Hurva on poles, it greatly widens the electrical bottleneck that used to reduce electrical capacity in southern Sweden. The potential for new companies and new jobs is cause for rejoicing.
The bad news is that it cost seven billion kronor, and took six years longer to build than expected. As Naod Habtemichael at DN correctly notes, the process was “a horrifying example of the state building infrastructure.”
I’m thrilled about it finally happening (see the abundance of posts in this blog about Sweden’s electrical challenges) but, omg, it has to become faster and easier if everyone is going to plug in their cars.
It is pretty though. Svenska Kraftnät – yes, that’s what they call themselves in English – brought in some pros to make the different elements in power transmission fit into the landscape. Below are pics from their website.
transmission poles by day…
and by night.The power station at Hurva, designed to reflect the surrounding landscape.
It’s been written about on this blog before (this, this and even this), but here it is again. Electricity prices. Why are they so high? Who’s in charge? And why are the bills so hard to understand? Has anyone seen where Sweden is on a map?
All these questions have sort of a “Nobel prize in economics” character. But it’s being taken up again today, because although the electricity network fee you pay is likely to be lowered this year and the next few, the Swedish Kraftnät is about to raise their prices. This will affect you and your wallet, and not in a good way.
Kraftnät (“powernet” is the closest translation) is the state-owned enterprise that is responsible for the country’s national electricity grid. Its customers are electricity producers and grid owners who pay for transporting electricity on the national grid (svk.se). Electricity producers are actors like Vattenfall, E.On, Fortum and Sydkraft. Regional grid owners, like E.ON Distribution, Vattenfall Distribution and Ellevio pass on electricity to local grid owners or directly to large consumers. All in all, there are about 170 variously-sized grid companies, one of whom sends you a bill (swedishsmartgrid.se).
Of the ten different items your electricity bill is made up of, only one of them is your actual usage. Four other items are dependent on how much you use and 5 items are set fees you have no control over (I got this info here).
This isn’t wrong per se, of course – if complicated, and if the prices are justified. Because the Swedish government didn’t think the prices were justified, they stepped in earlier this year and told the local electrical companies they had to lower their prices. Some people could get up to 20% off their 2020 bills. But wait, there’s more.
First off, the EU is not at all happy about the government getting involved with market prices. The government might get slapped on the wrist and have to take it back.
Second, the electricity companies are not at all happy about the government getting involved in market prices and are suing (like they’ve done before, and won).
Third, now that Kraftnät is going to raise their prices, any reduction in price that might have happened may be moot (because the other companies aren’t going to just sit back and take it).
All in all, your coming winter electricity bills might not be the save-fest they might have been.
The meteorological winter in Sweden started already the 18th of September of this year (five days, no above-zero temps, in Tarfala, Norrland). According to the Farmer’s Almanac, thick hair on the nape of a cow’s neck is a sure sign of a hard winter on the way. Barring that, you might look for ants marching in a line, rather than meandering like it’s Sunday morning. Alternately, look for an unusual abundance of acorns. Whatever method you choose, in the immortal words of the Snows (see: Game of Thrones): Winter is coming.
Cruising Bloomberg news for something to write about – besides ASAP Rocky – one headline from July 31st leapt out: “Sweden’s Biggest Cities Face Power Shortage After Fuel-Tax Hike” (bloomberg.com). Wait. What? We do? What fuel-tax hike?
A press release in April from the Ministry of Finance confirmed the tax hike (though not the possible power shortage). As part of the 73-point agreement between the Liberal, Green, Social Democratic and Center Parties, and formally entered in the Revised Spring Budget (vårändringsbudgeten), the previous tax relief measure was taken away (), meaning that taxes were raised. This to “contribute to” the switch-over to non-fossil fuels, and help make Sweden the first fossil-free welfare country in the world.
According to Bloomberg, the tax on fossil fuels used in heat and power stations has effectively tripled. Utilities like Stockholm Exergi AB, Eon and Göteborg Energi AB are quoted as having said they will be halting or cutting power production – although it won’t effect heating. It may, however, effect your wallet, so check your bill in the coming months.
In 2016, the Moderate, Center, Social Democratic and Christian Democratic parties agreed on the goal of making Sweden’s electricity 100% renewable by 2040. Now, the Moderates and Christian Democrats are saying they’re still on board – but hey, they weren’t ever talking about getting rid of nuclear energy by 2040. Nuclear energy has no CO2 emissions and is therefore not the fossil fuel that needs to go. The other parties, in particular the Green Party naturally, disagree, saying that nuclear power was absolutely part of the deal.
They were the ones who were there, so it’s hard for the rest of us to know and the matter remains a mystery. Will nuclear power be able to keep Sweden’s lights on until hydro- and wind power can take up the slack? Right now, they cover around 50% of Sweden’s energy needs, 11% or so is given us by fossil fuels and the rest, give or take, is covered by nuclear power ().
It’s early days, but already the leading fresh bread company in Sweden, Pågen, decided this last June not to expand its enterprise in Malmö when the energy company Eon said it couldn’t guarantee a steady supply of electricity ().
Minister for Energy and Digital Development, Anders Ygeman pic: svd.se
SvD.se reports today that the Swedish government is ready to go against the EU when it comes to regulating electricity companies. As reported earlier in this blog, and indeed it comes up repeatedly in Swedish news, the cost of electricity has rocketed upwards in large parts of this generally cold and snowy/rainy country.
In a perfect world, electricity prices should only rise when the income is needed for improvements in the electricity infrastructure. However, this has not happened, says the government: Prices have gone up but the infrastructure has not been improved upon. Furthermore, Minister for Energy and Digital Development Anders Ygeman says, while electricity companies can have a reasonable profit, they shouldn’t be able to profit at the expense of the consumer (). Therefore, the government wants their Swedish Energy Markets Inspectorate ( it’s less of a mouthful in Swedish – “energimarknadsinspektion”) to regulate it more, and presumably better.
Here’s where it gets tricky: The EU says no. According to the EU Commission, the government’s proposals go too far and too much against the EU’s energy market directive.
Sweden doesn’t agree (and neither does Germany, who wants to regulate its electricity companies more too). For its part, Sweden is going ahead with its new regulations, which are to take effect starting 2020. Lucky electricity consumers who have been hit hard by price increases can hope for up to a 20% cut in their elecricity bill.
Stay tuned for the EU’s response to these crazy rebels.
The Swedish Consumer Agency (Konsumentverket) criticized a slew of Swedish electricity companies for hard to read, and even harder to understand, cost information, Dn.se reported today. The Agency took a look at the websites of 13 companies, and found every single one of them lacking: One example was not being clear that the distribution charge (nätpris) wasn’t included in the cost they were quoting on the website. Since the distribution cost is a huge part of any electricity bill, and is completely seperate from the cost of the electricity you actually use, this is a good thing to be aware of.
According to SvD (https://www.svd.se/se-hur-mycket-ditt-elpris-forandrats) the cost of electricity delivered to the average home has increased 24% between 2013-2018. In many areas, up north in particular, the cost has increased up to 60%. There are a few teeny weeny counties where the cost has decreased, but they’re as easy to see as stars in the night sky over Manhattan.
The electricity companies have until the 30th of August to respond, after which the Consumer Agency may take further measures.
