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Swedish electricity prices hit all time high

Swedish electricity prices hit all time high

Published: 30 Dec 2010 10:52 GMT+01:00
Updated: 30 Dec 2010 10:52 GMT+01:00

The spot price for electricity in Sweden averaged 0.83 kronor ($0.12) per kWh in December, a record high since the deregulation of the electricity market in 1996, according to figures released by electricity supplier Telge Energi.

The average price furthermore represents an increase of 0.30 kronor over the past month as temperatures have plunged and demand soared accordingly.

The spot price, which peaked at 1.30 kronor per kWh in Lucia this weekend, is used as the basis for the calculation of variable electricity prices for households and businesses.

The average price for the whole of 2010 - 0.55 cents per kWh, is a full 40 percent above the average price recorded in 2009, according to the firm's figures.

The development of the futures market, which provides the basis for calculating fixed prices for electricity, has meant that it has become extremely expensive for consumers to fix prices, the firm's CEO John Öhnell argued in a statement.

Poorly refilled reservoirs, continuing problems with nuclear power generation and an average temperature which is seven degrees below normal, have placed upward pressure on electricity prices.

"The market is afraid of the weakness of hydrology and that the cold weather does not ease," Öhnell said.

Öhnell expects price pressures to wane in 2011, perhaps as early as January:

"Our assessment is that the price will be about 0.10 kronor lower than in December if the weather returns to normal temperatures," he said.

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

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Your comments about this article

11:42 December 30, 2010 by miss79
everything are high here..not only electricity but food also..the more kronor gets stronger, more inflation and expensive things get here in sweden
12:02 December 30, 2010 by Ricardo Richard
You the Swedes are absolutely right to complain about astronomical prices you pay for energy. Would you like to swap and pay around 1.15Skr for kWh (the average price on the Iberian Peninsula)? And obviously having our average salaries that are 3-6 times lower than yours. What would you do if you were in our shoes?
12:49 December 30, 2010 by Rick Methven
The headline figure does not show the full picture. On top of the price of electricity consumed you have to pay an energy tax of .28kr/ Kwh plus a delivery charge of around .20kr/kwh Plus a fixed annual charge of around 1800kr per year and then VAT of 25%

My average cost per Kwh is 1.64kr and that is with a fixed price 3 year contract for electricity of 0.544 kr /Kwh not the.83 spot price
12:51 December 30, 2010 by DerDeutsche
What are the prices the end customers pay per kWh (total with all taxes and feeds included)? In Germany, we pay well over 20 eurocent, about 2 SEK per kWh!
12:54 December 30, 2010 by Zoolander428
Well, if I was in your shoes Ricardo... the first thing I'd probably do is do my best to recall exactly how I ended up in your shoes. Were we at the same house, and I accidently put your shoes on instead of mine? Was a I attacked by the mysterious shoe-swapping fairy while I was asleep? I'm not sure.

Depending how comfortable your shoes were, I may take a long walk through the park, or maybe to the center. Shortly after, I would probably try to contact you so I could return the shoes. So don't worry, if I end up in your shoes, I will try to return them.
12:56 December 30, 2010 by Great Scott
This is nothing new, when utilities are sold to private fat cats. They are geared up to squeeze the last penny you have got, out of you. Having a conservative government do not help, they just condone it as they are all friends in each other's pockets, ever heard of the masons?
13:03 December 30, 2010 by Rick Methven
"This is nothing new, when utilities are sold to private fat cats"

The people in Northern Ireland who have not had any water for 12 days from a state owned company may disagree with you there
13:11 December 30, 2010 by Borilla
The name "Enron" comes to mind. It goes with "privatization".
13:20 December 30, 2010 by Zoolander428
Really Borilla? Which government agency was sold off to private industry to create Enron?
15:14 December 30, 2010 by krattan
Since noone has yet mentioned it the picture is of Akkats power station outside of Jokkmokk in northern Sweden. The artwork is called Uvssat davás - "Doors to the west" in sami - and was made by Bengt Lindström and Lars Pirak
22:36 December 30, 2010 by millionmileman
I see an enigma here. These are the same prices as Wisconsin, USA. Sweden has more hydro electric and Nuclear Plants. If we want to see prices go higher then we need even more wind mills.
00:56 December 31, 2010 by anticommie
Welcome to the enviro-wacko globull warming movement. Just think you can now sit in your cold apartment and save the globe. I am sitting in my 25C house and not paying much (800kr/month) for my coal burnt electricity.
01:06 December 31, 2010 by TwoToTango
There is nothing to worry about people. This will soon be fixed by the magical invisible hand of liberalism, he's just on a vacation currently.
10:54 December 31, 2010 by Rebel
The Greens want these horrendous energy taxes to keep consumption down, the Social Democrats want the tax money and the little bald dude is merely concerned with keeping power.

So bundle up folks...there is plenty left of the freezing temperatures.
11:47 December 31, 2010 by tomas R
Hello!

It is difficult to discuss about the prices in different countries. I pay 0.45ct per kWh. It means 1.22 kronor per kWh. My month salary is 1850 Litas. In Your money it would be about 5000 kronor. I work in Automotive sector in stamping division. 1 kronor is about 0.37 Litas. So it is real case about electricity prices and salaries in Lithuania.

Happy New Year!

tomas (Lithuania)
18:57 January 1, 2011 by mojofat
@zoolander428

"Really Borilla? Which government agency was sold off to private industry to create Enron?"

The state of California sold off its public electricity operations, not to Enron directly as Enron wasn't a utility operator. They were something far more useless: an energy trader. It's because of the privatization of the public infrastructure that companies like Enron were able to steal money from the public...by creating false shortages and then reselling that same electricity back to them at a 10x markup.

I'm all for a free-market but there are some things that simply do not make sense and are not in the public interest to privatize. Electricity is one of those. The public is expected to make these huge investments building the power grid and all of the underlying infrastructure so that some private corporation can come along later and make a bundle of money gouging the tax payers off the very system they already paid for? I'm shocked, for all of the socialist leanings of Sweden that they have a private energy company. Systemboladget they have to have government control but not the supply of electricity...uhh...makes perfect sense.
00:39 January 2, 2011 by Borilla
Enron manipulated energy prices by manipulating the "privatized" former public electricity companies, creating false power scarcities, and driving energy prices higher and higher. That is exactly what I was referring to. There certainly seems to be a lack of over sight here in Sweden. Who is watching the hen house here, other than the fox?

You are correct that privatization of electricity, and public utilities in general, is not good public policy, viz. SJ. The public finances the infrastructure, the private companies run it into the ground and skimp on repairs and drive costs higher and higher.

As for Systemboulaget, the greatest furor over government control seems to come from expats. Privatization of that perfectly well functioning operation would serve no purpose other than to drive up prices and fill the pockets of importers and their well-connected friends.
02:41 January 2, 2011 by anticommie
Type in goggle, enrom-global warming-democrats and see were the corruption was really at. The globull warming movement is a corrupt religion with millions of mindless followers.
06:38 January 2, 2011 by Rick Methven
@'anticommie

"The globull warming movement is a corrupt religion with millions of mindless followers."

But good ole illiterate southern dimwits like anticommie will continue to stick his head in the sand only coming out to kiss his photo of Sarah Palin
11:28 January 2, 2011 by mojofat
@anticommie

Global warming is science, not a religion. We have multiple datasets that all point to man-made climate change. It seems far more reasonable that any skepticism at this point is based on corporate interests.

@Borilla

"Privatization of that perfectly well functioning operation would serve no purpose other than to drive up prices and fill the pockets of importers and their well-connected friends."

I fail to see how prices could go any higher than they already are. My neighbor takes a trip to Germany once a month to load up on booze...because it's that much cheaper! My point wasn't that Systembolaget would function better if privatized (although I do believe that), but that it seems strange in a country where the alcohol market is so tightly controlled they don't regard a public good like electricity in the same manner. Personally, I would rather they focus on getting the electric grid functioning perfectly than the liquor stores...it appears to be a misplaced priority.
11:59 January 2, 2011 by Nemesis
@ Rick Methven,

The maintenance and laying of the water mains pipes in Northern Ireland has been subcontracted out to private contractors in preparation for privatisation.

Those sub contractors have left the entire water distribution network at below standard.

About 60% of what has happened in Northern Ireland is due to damage and sub standard work by modern sub contractors.

On top of that large sections of the of the mains supply piping were laid 150 to 200 years ago when the water supply in Northern Ireland was owned by a private company. Some of those have turned out to have been made of wood instead of ceramic or metal. That was done to reduce costs.
15:09 January 2, 2011 by engagebrain
The supply of power is too important to be run by for profit companies

- the best way to make profits is too create a mismatch between supply and demand not to efficiently match supply with demand.
15:53 January 2, 2011 by Rick Methven
In actual fact the majority of Europe is subject to state control of energy costs. Only problem is that the state controlling the supply and cost is RUSSIA
18:00 January 28, 2011 by Steffeni
The cost of electricity with all of the added costs is significantly higher than in the US. In Minnesota, we pay approximately 8.3 cents per kilowatt hour. Rates are however regulated by Public Utility Commissions.
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