• Sweden edition
 
Pricey power threatens Swedish industry: CEO

Pricey power threatens Swedish industry: CEO

Published: 10 Dec 2010 11:59 GMT+01:00
Updated: 10 Dec 2010 11:59 GMT+01:00

High prices in Sweden for electricity and wood have made pulp production unprofitable, with pulp manufacturer Rottneros suspending parts of its production lines as a result.

"Energy companies earn a lot of money from the high prices. It is a perverse system that those who profit from this are the electricity companies," Rottneros CEO Ole Terland told the TT news agency.

Separately, Sweden's Ringhals 1 nuclear power reactor in Varberg 60 kilometres south of Gothenburg on the country's west coast was shut down again on Friday.

Rottneros has decided to suspend production at its so-called CTMP (chemithermomechanical pulping) line at its Rottneros mill north of Karlstad in western Sweden for about 10 days.

Extremely high electricity prices combined with high wood costs makes sales unprofitable, according to a company statement.

"Sweden cannot live with double the energy prices of the rest of the world and believe that we can still have energy-intensive production. It will never happen," said Terland.

According to him, the greatest problem is that Sweden has no energy policy. He added that it is absurd that Swedish energy producers benefit from electricity shortages that currently affect electricity-intensive industries.

He is also particularly critical of how nuclear power plants are operated.

"We have terribly poor maintenance and operational availability at our nuclear power plants. That is the core problem. I don't understand why Sweden is much worse than other neighbouring countries," he said.

Ringhals 1 was closed after a new fault was discovered, newspaper Hallands Nyheter wrote on its website on Friday.

The reactor was restarted last Friday after an audit, but was taken offline overnight on Monday, when a measurement error was found.

On Tuesday, the reactor resumed production with the hope that it would reach full power later in the week.

However, the reactor was disabled again on Wednesday evening for repairs and is not expected to restart until next Thursday.

"It is unfortunate that this takes place during a cold snap, but we cannot compromise with security," Gösta Larsen, communications director at Ringhals, told the newspaper.

The interruption at the Rottneros mill will result in the loss of half of its production and affects one-fifth of the entire company's output.

"This is a consequence of ineffective energy policies. Factories cannot run when the owners need to send money for every tonne that they sell. As a consequence, they have to close production," said Christer Larsson, economist at the Swedish Paper Workers Union (Pappers).

The most important task is to solve the long-term problems, he added.

"It is about getting more energy sources at lower costs than what we currently have on the margin. It is clear that upgrading nuclear power plants is of immediate importance and the need for new nuclear power plants as well," said Larsson.

"However, it requires a broad political agreement so that it remains in place through several terms of office," he added.

TT/The Local/vt (news@thelocal.se)

Your comments about this article

14:58 December 10, 2010 by Great Scott
When you privatise utility's this is what you get, sky high prices to feed fat cat morons.

The Swedish government will nothing about it either, they are all friends together.

All utility's should be nationalised.
15:16 December 10, 2010 by Zill
How's about putting the (currently mothballed) nuclear electric generating station at Barsebäck (two reactors) back in service?

Such a move would anger the Swedish Green Party (Miljöpartiet de Gröna) and the Left Party (formerly VPK, or Communist), but so what?
15:54 December 10, 2010 by PhilHill
What really annoys me about electricity prices in Sweden is that the tax is about 100%. In the UK its 5%.

This means that we are paying double the real price. Some people might argue, that this is good, because it helps to reduce CO2 pollution, but the fact of the matter is that none of the power produced in Sweden produces CO2.

Its all nuclear, hydro and wind.

So what happens to people like myself that cannot afford to heat their homes using electric radiators (elements), Well I switch to using my old Kakelugn (old tiled oven) and this of course does produce CO2 pollution. The taxes on electricity and the high electricity prices are actually causing more pollution than if the prices were kept low. The whole policy is a mess in my opinion.
17:54 December 10, 2010 by Swedish123
High Prices. Yes everybody know why. To pay all the social benefits to immigrants.
21:07 December 10, 2010 by Brucelee@stockholm.sweden
Government took 100% of the energy price, that is evident that both government and energy company capitalist are beneficiaries of high energy price, it is true politicians are friends of those energy tycoon, in this sense this government will not take any step to stop the energy price from going higher and higher
11:11 December 11, 2010 by jackx123
so.... with increase population coupled with higher standards of living (one must assume) it's only logical to also assume that there will be an increase in power consumption. The question is - WHAT DOES THE GOVERNMENT DO ABOUT IT?

Seemingly VERY little. The subject is all the time to turn green, but it's like saying I'm 50km behind and still want to win the race on the same tank as my competitor, well I got news - that dog ain't gonna hunt.

Wake up and expand hydro power (green) and nuclear. It's the only way out of the hole.
20:48 December 11, 2010 by izbz
Swedish 123

Ya ya blame it all on the immigrant. I an immigrant is one of those who refuse to work black money. always paid my taxes to also help to paid for social benefits to immigrants as well as Swedish. What the F has electricity got to do with immigrant. By the way did you vote for SD?

Comment wisely nasta gang. Government should have control over electricity, no private sector.
17:41 December 12, 2010 by weiler
Hm, the Swedish consumer pays Kr2/Kwh, industrial users about Kr0.70/Kwh. So what exactly are they (industry) complaining about? Only Bulgaria and Estonia have cheaper industrial Kwh rates than Sweden, so the reason for lack of competitiveness must be sought elsewhere, I think...
07:33 December 14, 2010 by wabasha
Barsebäck is rather old (1969/75) and 20k from Copenhagen, so dont expect it to re-open. build new! just like the Finnish.
Today's headlines
Opinion
'Why were we kept in the dark for years?'
The submarine hunt is now in it's sixth day. Photo: TT

'Why were we kept in the dark for years?'

Military expert Johanne Hildebrandt tells The Local that the biggest question in the Stockholm submarine hunt hasn't been answered yet - why don't we know more about the "other operations" from the last few years? READ  

The Local List
Eight things to love about renting in Sweden
Apartments in Sweden are compact. Photo: Shutterstock

Eight things to love about renting in Sweden

A housing crisis means that short-term sublets are the norm in major cities and rent regulation rules are frequently flouted. But this week, The Local's decided to look on the bright side of renting an apartment in Sweden. READ  

Business & Money
Nordea banks big third-quarter profit gain
Nordea's Chief Executive Christian Clausen. Photo: TT

Nordea banks big third-quarter profit gain

Swedish bank Nordea announced on Wednesday a sharp rise in third quarter profits despite the economic slowdown and major outlays for an IT overhaul. READ  

National
Knutby priest faces early release from prison
Knutby in eastern Sweden, the scene of the murder. Photo: TT

Knutby priest faces early release from prison

A former priest in eastern Sweden who was sentenced to life in prison for organizing the murder of his wife has had his sentence reduced. READ  

Opinion
'Sweden will see Russia as a threat again'

'Sweden will see Russia as a threat again'

The Local speaks to one of Europe's leading security experts about why social media meant the Swedish military couldn't keep their 'submarine' search a secret and how she believes the country will ramp up its security against Russia. READ  

Interview
'Swedes are funnier than they think'
Comedian Al Pitcher has launched his new tour. Photo: www.alpitcher.com

'Swedes are funnier than they think'

New Zealand-born Al Pitcher launched his new comedy show in Stockholm this week. There wasn't a dull moment as The Local phoned up the man who has become one of Sweden's hottest comedians, while he took an eventful stroll in the capital. READ  

National
Stockholm suicide bomb investigation closes
The suicide bombing took place in 2010. Photo: TT

Stockholm suicide bomb investigation closes

Sweden's Security Service (Säpo) has announced that it will stop its core investigation into a suicide bombing in Stockholm four years ago. READ  

Stockholm 'sub hunt'
Military heads into 'new phase' in sub search
The search for the missing 'submarine' is now in its sixth day. Photo: TT

Military heads into 'new phase' in sub search

A press conference on the search for a suspected foreign vessel in Swedish waters revealed that the Armed Forces would be heading into a "new phase" on Wednesday, although it remained unclear what that might involve. READ  

Lifestyle
Vasa ship cannon blasted in Sweden
The bronze replica cannon. Photo: Beth Dacey.

Vasa ship cannon blasted in Sweden

A replica of one of the cannons present on Stockholm's iconic Vasa warship when it sank in 1628 is being tested for the first time in central Sweden. READ  

Health
Swedish farmers contracted swine flu
Swine flu can spread between pigs and humans. Photo: TT

Swedish farmers contracted swine flu

A human strain of the swine flu virus normally only found in pigs was discovered in Sweden earlier this year, the country's Public Health Agency has revealed. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
National
Vasa ship cannon blasted in Sweden
National
Sub hunt: Day-by-day
National
Sub hunt: Stockholm islanders share their fears with The Local
Sponsored Article
The best options for oversea transfers
National
Get 20% off unique Swedish homeware
Blog updates

21 October

Denna & den här (The Swedish Teacher) »

"?Denna? or ?den hr?? Swedish language students often ask question about different pronouns. One pronoun that especially..." READ »

 

19 October

Getting it (Blogweiser) »

"Follow Joel Sherwood on FB Few watch baseball in Sweden. This is excellent when your team loses..." READ »

 
 
 
National
Dentist gives free care to Roma beggars
Business & Money
Get your own office in Gothenburg or Stockholm - free for a day
Gallery
Property of the week: Malmö
Gallery
PHOTOS: 'Foreign activity' in Swedish waters
Gallery
People-watching: October 19th
TT
Society
QUIZ: How good is your Swedish?
Lifestyle
What's on in Sweden: October 17th - 24th
Society
The nudity... and nine other things expat men notice in Sweden
Gallery
People-watching: October 15th
Gallery
Your views: Should outdoor smoking be banned in Sweden?
Business & Money
Sweden has 'large hole' in finances
Sponsored Article
Introducing... Finding a job in Stockholm
Society
Monster salmon caught in northern Sweden
Gallery
Property of the week: Lorensberg
National
Scandinavia's child bride
National
Ebola crisis: How is Sweden preparing?
Business & Money
How Sweden is becoming a cashless society
Gallery
Stockholm Burlesque Festival 2014
National
How a little red horse became a symbol for Sweden
Gallery
People-watching: October 12th
Business & Money
The hottest start-ups from southern Sweden
National
What's on in Sweden: October 10th - 17th
National
Stockholm is 'best' region for well-being
Gallery
People-watching: October 8th
National
Five facts to know about Patrick Modiano
Society
My Swedish Career: A French fashionista in Sweden
Society
Swede's anti-bully Facebook tale goes viral
Society
Have you seen Sweden's viral subway cancer campaign?
National
Isis: Swedes linked to Turkish prisoner swap
National
Should Swedes be banned from buying sex abroad?
Gallery
Fredrik Reinfeldt's leaving presents
National
Five Swedish TV shows you shouldn't miss
Gallery
A tool belt, a casserole, and a book. Fredrik Reinfeldt's parliament gifts
TT
Lifestyle
Top five winter festivals in Sweden
TT
National
Sami reindeer herders win mine reprieve
Gallery
Property of the Week: Gamla Enskede
Sponsored Article
How to catch the first lobster of the year
Politics
Ten new minister faces you should know
Tech
First womb transplant baby in world born in Sweden
Gallery
People-watching: October 5th
National
What's on in Sweden
Team SCA
Sponsored Article
All-female SCA team takes off on Volvo Ocean Race
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

1,007
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN