New District Heating Shock - Prices to Rise This Much

After the recent years' price shock on district heating, another significant increase is expected next year. In certain parts of the country, prices will rise by around 20 percent for households.

» Published: October 30 2024

New District Heating Shock - Prices to Rise This Much
Photo: Anders Wiklund/TT

District heating is the most common form of heating in Sweden.

However, Swedish households have seen prices skyrocket in recent years as a consequence of more expensive energy, and the increase will continue next year as well.

About 50 companies have so far reported their announced price changes to Prisdialogen – a collaboration between the industry and customers.

The average increase so far is 7.9 percent compared to 15 percent the previous year. In some cases, there are more modest increases, and residents in, for example, Piteå and Sandviken can expect increases of 3-4 percent. In several cases, however, it is significantly higher than that.

Substantial price hike

Households in Hässleholm will receive a price hike of 17 percent, and in Örnsköldsvik, it is 12 percent.

Rikard Silverfur, representing Fastighetsägarna at Prisdialogen, notes that as a customer, one has virtually no opportunity to influence.

I would say it is minimal. It is precisely because of this powerlessness as a customer that it has been highlighted by the Riksdag and the government, and investigations have been set up to strengthen the customers' position, he says to TT.

They (energy companies) can, according to the regulations, almost set any price they want. There are areas where the increases can be motivated, but also others where it is not fully justified, which the large spread shows.

Not all companies are tied to Prisdialogen. One such company is Solör bioenergi. For example, the variable price of district heating in Falköping will be shockingly increased by 40.4 percent next year during the summer half-year.

Among the highest in the country

TT has been in contact with the company. Region Manager Nicklas Eld notes that thanks to the fixed price being unchanged, the total increase will instead be 19.4 percent.

It is still one of the highest in the country, what motivates this?

The cost of biofuels, which accounts for two-thirds of our total costs, has increased by 123 percent over the past two years in Falköping.

Rikard Silverfur and Prisdialogen see that significant price increases can, to some extent, erode confidence and interest in using district heating as an energy source in the future.

Members react to how some new actors, with both aggressive expansion plans and significant price increases, are acting. This has made them reconsider their choices of suppliers.

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Trump Administration Pressures EU Firms
1 MIN READ

Trump Administration Pressures EU Firms to Halt Diversity Programs

Sweden Seeks to Shield Key
2 MIN READ

Sweden Seeks to Shield Key Goods from EU-US Tariff Clash

Weekend Push for New Industrial
2 MIN READ

Weekend Push for New Industrial Agreement as Deadline Looms

Swedes Opt for Europe as
3 MIN READ

Swedes Opt for Europe as US Travel Bookings Drop 30 Percent

Energy Efficiency Boosts Villa Prices
1 MIN READ

Energy Efficiency Boosts Villa Prices in Sweden's Real Estate Market

Elon Musk's XAI Acquires Platform
1 MIN READ

Elon Musk's XAI Acquires Platform X in Major Tech Move

Inflation Concerns Drag Down Wall
1 MIN READ

Inflation Concerns Drag Down Wall Street Indices

Sweden Seeks New Investors for
1 MIN READ

Sweden Seeks New Investors for Bankrupt Northvolt Battery Firm

US Inflation Surprises with Higher
1 MIN READ

US Inflation Surprises with Higher Than Expected February Rate

Li Ka-Shing Halts Sale of
1 MIN READ

Li Ka-Shing Halts Sale of Panama Canal Ports Amid Beijing Pressure

Princess Madeleine Addresses Criticism Over
2 MIN READ

Princess Madeleine Addresses Criticism Over New Skincare Venture

Stockholm Stocks Slide 4.5 Percent
1 MIN READ

Stockholm Stocks Slide 4.5 Percent in a Week as US Inflation Hits

French Inflation Dips Below Expectations,
1 MIN READ

French Inflation Dips Below Expectations, Impacting ECB Decisions

Cautious Consumer Spending Sees Slight
1 MIN READ

Cautious Consumer Spending Sees Slight Uptick in Sweden's Retail Sales

SSAB Faces Financial Supervisory Authority
1 MIN READ

SSAB Faces Financial Supervisory Authority Probe Over Reporting Rules

79,000 Swedes Face Student Debt
1 MIN READ

79,000 Swedes Face Student Debt with Enforcement Authority in 2024

Royal Expert Questions Princess Madeleine's
3 MIN READ

Royal Expert Questions Princess Madeleine's Skincare Venture

Gold Prices Reach New Heights
1 MIN READ

Gold Prices Reach New Heights as Trade Tariff Concerns Grow

Asian Markets Tumble as Investors
1 MIN READ

Asian Markets Tumble as Investors Brace for New US Tariffs

Trump's Tariff Plan Could Drive
2 MIN READ

Trump's Tariff Plan Could Drive Up Car Costs, Impact US Market

Ubisoft and Tencent Invest $1.25
1 MIN READ

Ubisoft and Tencent Invest $1.25 Billion in New Gaming Subsidiary

Sweden to Build Major Carbon
2 MIN READ

Sweden to Build Major Carbon Capture Facility in Stockholm by 2028

Wall Street Dips as US
2 MIN READ

Wall Street Dips as US Car Giants Slide on New Tariff Announcement

Vattenfall Prepares Autumn Application as
2 MIN READ

Vattenfall Prepares Autumn Application as Sweden Backs Nuclear Expansion

US Car Tariffs Threaten Swedish
2 MIN READ

US Car Tariffs Threaten Swedish Auto Industry, Warns Dousa

Nordic Nations Unite to Tackle
1 MIN READ

Nordic Nations Unite to Tackle Unsafe Products from Temu and Shein

Volvo Recalls 73,000 Hybrids Over
1 MIN READ

Volvo Recalls 73,000 Hybrids Over Fire Risk in Battery Charging

Four Charged in Nasdaq Stockholm
2 MIN READ

Four Charged in Nasdaq Stockholm Insider Trading Scandal

European Car Stocks Drop After
1 MIN READ

European Car Stocks Drop After US Tariff Announcement

Trump Warns EU and Canada
1 MIN READ

Trump Warns EU and Canada of Higher Tariffs Over Economic Moves

Sweden's FI Pushes for Clearer
1 MIN READ

Sweden's FI Pushes for Clearer Mortgage Rate Discount Notices

Trump's Trade Tariffs Add Pressure
2 MIN READ

Trump's Trade Tariffs Add Pressure to H&M's Struggling Sales

US Implements 25% Car Tariffs
2 MIN READ

US Implements 25% Car Tariffs to Boost Domestic Production

Sweden to Cut Ties with
3 MIN READ

Sweden to Cut Ties with Underperforming Job Placement Firms

US Tariffs Trigger Global Stock
1 MIN READ

US Tariffs Trigger Global Stock Market Dip; Volvo and Banks Hit Hard

SBAB Increases Fixed-Rate Mortgage Interest
1 MIN READ

SBAB Increases Fixed-Rate Mortgage Interest by 0.10 Points

Second-Hand Market Sees Over 40
1 MIN READ

Second-Hand Market Sees Over 40 Percent Drop in February

Tokyo Stocks Dip as US
1 MIN READ

Tokyo Stocks Dip as US Tariff Threats Shake Asian Markets

Japanese Car Stocks Tumble After
1 MIN READ

Japanese Car Stocks Tumble After Trump's Tariff Announcement

US Considers Lower Tariffs for
1 MIN READ

US Considers Lower Tariffs for China in Tiktok Sale Deal