Busch says criticized electricity fee can be stopped

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Busch says criticized electricity fee can be stopped
Photo: Magnus Lejhall/TT

The statutory, widely criticized "power tariffs" may be scrapped. I am in favor of stopping them outright, says Energy Minister Ebba Busch (KD).

Many electricity companies have already introduced it - a special fee on the electricity bill based on how much electricity is consumed simultaneously. But several large companies, including Vattenfall and Eon, have not.

From January 1, 2027, the law requires everyone to charge a power fee. But now there is another announcement from the government, where the parties in the Tidö agreement have agreed to review the law.

"We will review whether it is possible to make sensible adjustments to this, or whether we should simply stop it outright, and how, in such cases," Ebba Busch tells TT.

“Unreasonable”

According to her, many households and businesses have contacted her and expressed concerns. Surveys have also shown that many people do not understand the system.

"It has had completely unreasonable consequences. I have said that we have to clean this up," says Busch.

How this will work or which authority will be tasked with reviewing the issue is not yet clear, the government announces.

The Center Party is not impressed.

"If Ebba Busch is serious about stopping the new power tariffs, proposals need to be made immediately," says Rickard Nordin, the Center Party's energy spokesperson, in a written comment to TT.

Some lose, others win

The purpose of the power charge is to encourage electricity customers to spread their consumption over the day. This reduces pressure on the electricity system and allows, at least in theory, more consumers to be connected without having to expand the grid unnecessarily.

"It doesn't help electrification in the way that was initially thought," says Ebba Busch.

The change, among the electricity network companies that have already introduced the system, has been met with some criticism - that it has resulted in more expensive electricity bills without anyone understanding why. The electricity network companies are not allowed to increase the overall fee for the entire customer group, so when some lose out, those who can even out their electricity consumption become winners on the new power tariffs.

The purpose of power tariffs is to make it profitable to spread electricity use over the day.

Different electricity companies have different ways of solving this, but essentially the customer partly pays for their occasional power peaks during a month.

In Ellevio's case, the fee consists of three parts and an additional rule for nights:

1. A fixed fee that varies depending on the customer's main fuse.

2. Transmission fee based on electricity usage in kWh during the month.

3. Power charge based on the average of the customer's three highest power peaks (each under one hour) during the month. This component accounts for 40 percent of the total electricity network charge.

4. At night (10pm–6am), only half the power peak is counted.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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