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Swedes pay more for electricity than Nordic neighbours
Photo: kalleboo

Swedes pay more for electricity than Nordic neighbours

Published: 07 Mar 2011 09:37 GMT+01:00
Updated: 07 Mar 2011 09:37 GMT+01:00

Swedes are paying considerably more for their domestic electricity than their Nordic neighbours, according to research carried out by the Swedish Homeowners Association (Villaägarna).

The organisation found that the annual cost of electricity in an average Swedish house is almost 9,000 kronor higher than in a comparable house in Finland.

A Swedish homeowner can expect to pay 21,000 kronor per year, while Finns will pay an average of 12,554 kronor. Norwegians with a similar sized house will pay around 19,000 kronor per year, reports Dagens Industri - almost 10% less than the Swedes.

The Homeowners Association claims that expensive Swedish electricity is entirely due to the country's electricity tax, since prices on the Nordic energy markets are otherwise the same.

The high price has prompted enterprise and energy minister Maud Olofsson to float the possibility of reducing the energy tax.

"I would consider taking a look at it," she said in an interview with Dagens Industri.

"Generally speaking, I think the energy debate needs to head towards an overhaul of the system in order to create credibility."

A month ago, Olofsson sparked fury among homeowners by telling them to insulate their homes, install triple-glazed windows and replace incandescent bulbs if they wanted to lower their bills.

She also urged electricity customers to unplug electrical appliances to keep them from running in standby mode - advice which the Swedish Homeowners Association vice director Joacim Olsson called "a provocation".

But the most important factors in bringing down the cost of electricity, according to Olofsson, are continued development of renewable sources of energy production and improved energy efficiency.

"As long as we need coal, oil and gas, increased consumption of electricity will drive up the prices," she said.

TT/The Local (news@thelocal.se)

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Your comments about this article

11:25 March 7, 2011 by Keith #5083
According to the E-control and VassaETT EU price index (including taxes) for Jan 2011 the average generation and distribution costs account for 75% of the bill. In Sweden, however, these "so-called greedy" power companies account for only 65% of the bill. This is remarkably efficient considering the geography and population size/distribution in Sweden.

The high-price comparison is entirely related to tax. Could you believe you pay more tax in Sweden than in Norway?
11:46 March 7, 2011 by Newbluevim
The price of electricity in Sweden is not related to the cost of generation or distribution.
12:00 March 7, 2011 by Nemesis
The fact that Swedes are paying more than the Irish with one of the least inefficient generation systems and transmission networks in Western Europe, lets us know that someone has got greedy somewhere.

Sweden has efficient hydro. The prices should be a lot lower.

But then again Sweden has embraced neo-liberalism. Greed first, everything else second.
12:51 March 7, 2011 by Rebel
You have a system in which the more the electric companies charge, the more taxes the government can rake in. So don't expect either the little bald dude, especially since he is trying to cozy up to the Greens, to do anything about this.

Just wondering though, the media rarely if ever mentions that most of the electric bill people pay in Sweden is the tax. So I guess with this unholy alliance of companies, government and media you better get used to outrageous bills from now on.
12:53 March 7, 2011 by laughingoutloud
Some places in Sweden it is proven that the new meter are faulty
23:02 March 7, 2011 by KungsholmenGuy
Nemesis and Rebel, it's not greed, it's Sweden's environmental martyrdom.

Every year Sweden pays penalties to the EU for not meeting self imposed emissions targets for cities like Stockholm, one of the cleanest major cities in the world, while Paris and Belin (the guys who made the rules) enjoy exemptions from these particular rules.
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