In the past week, electricity prices skyrocketed in the southern half of the country. At times, the differences were several tens of thousands of percent.
However, even over a slightly longer period, households and companies generally pay double the price for electricity in Götaland and Svealand. So far in December, the average price in Norrland (electricity areas 1 and 2) is around 13 öre, in electricity area 4 around 1.20 kronor per kWh. Almost ten times higher. So far this year, the price is double in southern Sweden.
Ten öre less
Despite this, Norrlanders also pay almost ten öre less in electricity tax per kilowatt-hour – a tax rebate introduced in the early 1980s as a regional policy compensation for the fact that it is more expensive to heat a house in the colder Norrland.
This support was introduced long before Sweden was divided into electricity areas (2011) with different prices as a result.
For a villa owner who consumes around 20,000 kWh per year, this means around 2,000 kronor per year in tax difference. The rebate amounts to around 760 million kronor annually, according to the government's budget.
This is irritating – it reduces the competitiveness of companies in southern Sweden, critics argue.
"Almost mocking"
"We're getting increases instead. It's almost mocking. But the serious thing is that it costs jobs and reduces competitiveness," says Per Tryding, vice CEO of the Southern Swedish Chamber of Commerce.
The regular tax will be increased again at the turn of the year by 1.1 öre per kWh, despite the government and the Sweden Democrats having promised to freeze the tax. The same thing happened at the previous turn of the year. Including VAT, the electricity tax will be close to 55 öre/kWh next year. In large parts of Norrland, the rebate remains at 9.6 öre.
The Ministry of Enterprise and Innovation notes that it is not particularly high on the agenda to review the tax difference.
Dalarna County: Malung-Sälen, Mora, Orsa, and Älvdalen.
Gävleborg County: Ljusdal
Jämtland County: all municipalities
Norrbotten County: all municipalities
Värmland County: Torsby
Västerbotten County: all municipalities
Västernorrland County: Sollefteå, Ånge, and Örnsköldsvik
The rebate of 9.6 öre applies to households and companies in the service sector.
Source: The Swedish Tax Agency
