Industry demands electricity price rules

One of Swedish industry's brightest sparks has joined many of the country's manufacturing industries in calling for price regulation in the electricity market.

Sverker Martin-Löf, who is a director of paper giant SCA and holding company Industrivärden, has criticised the wildly fluctuating electricity prices faced by industry. And it is not only his own interests that he is representing: according to Svenska Dagbladet he has the support of the steel, mining, chemical, plastic and medical sectors.

“I am conscious of the fact that this is a very unusual demand from the business world, but today we see no other solution to the energy price problem than state regulation of the energy market,” said Martin-Löf.

“What we have today is not a functioning competitive market as it was supposed to be – instead it’s an oligopoly with serious limitations.”

On Wednesday the manufacturing industries are to present their analysis of the situation and options for development.

The report is also being backed by the Swedish Agency for Economic and Regional Growth (Nutek), the innovation agency Vinnova and other union organisations.

Martin-Löf points out that investment in manufacturing is declining.

“That depends to a large extent on uncertainties in our electricity market,” he told SvD.

He added that the phenomenon of jobless growth – strong economic development without a corresponding rise in jobs – is a consequence of this.

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TT/The Local