pic: mumby.com
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.
