• 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)

Don't miss...X
Left Right

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
Elections 2014
Social Democrats reveal election manifesto
Photo: TT

Social Democrats reveal election manifesto

LIVE: Sweden's main opposition party the Social Democrats are revealing their election manifesto at a press conference at a high school in Stockholm. READ  

Teen run over by train after 'shoplifting' chase

Teen run over by train after 'shoplifting' chase

A teenage boy is in a critical condition after he was hit by a passing metro train in Stockholm. The accident ground rail traffic to a halt, and has police suspecting attempted murder. READ  

Swimrun
Record win at Sweden's tough island race
Photo: Jakob Edholm/ÖTILLÖ14

Record win at Sweden's tough island race

Two Swedes crushed last year's course record at the Swimrun world championship in Stockholm's archipelago on Monday. READ  

Sweden reveals Academy Award submission
Swedish director Ruben Östlund on set. Photo. TT

Sweden reveals Academy Award submission

The movie set to represent Sweden at the 2015 Academy Awards was revealed on Monday, a film that has already won awards abroad. READ  

Amphetamines
Hidden forest drug stash leads to prosecution

Hidden forest drug stash leads to prosecution

A 53-year-old man has been prosecuted after police in western Sweden made one of their largest drug seizures in the area. READ  

Man shot dead in hunting accident
Photo: Hunter Desportes/Flickr

Man shot dead in hunting accident

UPDATED: Police in northern Sweden say a man was killed on Monday morning after what they described as a "hunting accident". READ  

Pirate Bay Swede's trial set for final stage

Pirate Bay Swede's trial set for final stage

The mother of Swedish Pirate Bay co-founder Gottfrid Svartholm Warg has told The Local about her son's "suffering" in jail ahead of the final stages of his trial. READ  

Suspected Ebola case ruled out in Sweden
Photo: Fredrik Sandberg/TT

Suspected Ebola case ruled out in Sweden

UPDATED: Officials at a Stockholm hospital reported that they had found a suspected case of the Ebola virus on Sunday night. But the case was dismissed on Monday. READ  

Murderer on the loose after breakout

Murderer on the loose after breakout

A 34-year-old man who killed a child is on the run after he broke out of a psychiatric ward in central Sweden. READ  

Skåne floods
Huge clear up underway after Skåne floods
A Malmö bus under water. Photo: Stig Åke Jönsson/TT

Huge clear up underway after Skåne floods

Flood waters subsided in the southern Sweden region of Skåne on Monday, after flash flooding saw chaos on roads and trains at the weekend. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
National
Huge clear up underway after Skåne floods
Politics
Sweden's Alliance reveals full manifesto
Tech
Sweden's highest peak to lose title next year
Politics
How immigration became a key election issue
Society
Brit's life in Sweden becomes BBC radio show
Blog updates

02 September

America night (Blogweiser) »

" There was an event this weekend for the ‘Americans in Sweden’ Facebook group. I’m a member, and I brought my girls to the evening. The gathering was at a Boston-themed sportsbar in a mall. There were loads of screens, a bowling alley, a game room and a jumbotron. It was as good a place as any to..." READ »

 

25 August

Hit och dit, här och där (The Swedish Teacher) »

" Hej igen! A common challenge for Swedish language students are the location adverbs hit/här, dit/där, hem/hemma etc. Some of the location adverbs come in two versions. We should use one type of location adverb when we use a verb describes where we are, and we should use the other type of location adverb when we the verb..." READ »

 
 
 
Gallery
People-watching August 27
Gallery
Top ten false friends in Swedish
National
Roma advocate scoops Wallenberg prize
Society
Meet the man who made a Swedish store recall its high heels for kids
Business & Money
'How I came to run my own business in Sweden'
Politics
Expert explains why Sweden's election oozes uncertainty
National
City plays Schindler's List theme at Nazi rally
Society
For Stockholm Fashion Week, here's the A-Z of Swedish fashion
National
'Amnesiac' man avoids deportation for ten years
Gallery
Princess Estelle through the years
Business & Money
Swedish city all set for six-hour workday trial
Business & Money
Five golden rules for the Swedish job hunt
Sponsored Article
Graduates: Insure your income in Sweden with AEA
Gallery
People-watching August 22-24
National
Armed royal guards caught (very) drunk on the job
National
Sweden orders textbook on Roma discrimination
Gallery
Violent anti-Nazi demonstrations in Malmö
Society
A closer look at Sweden's five official minority languages
Gallery
See the destruction from the southern Sweden floods
Sponsored Article
Find out what gives this Swedish school executive appeal
Sponsored Article
Introducing...Your finances in Stockholm
Sponsored Article
Introducing...Housing in Stockholm
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

745
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