SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Pause model that makes electricity prices more expensive

At the end of October, a new criticized model is introduced, which is expected to make the electricity price more expensive. We demand that the government postpones the introduction of this new model, says Fredrik Olovsson, energy policy spokesperson for the Social Democrats.

» Updated: 02 October 2024

» Published: 01 October 2024

Pause model that makes electricity prices more expensive
Photo: Fredrik Sandberg/TT

From the end of October, Sweden and the rest of the Nordic countries will get a completely new model that is intended to make electricity transmission smarter – so-called flow-based capacity calculation.

However, the model has been met with harsh criticism from both experts, producers, and consumers. Above all, Svenska kraftnät's test run of the model indicates that Sweden as a country will come out as a loser with higher electricity prices.

"Risks giving higher electricity prices"

Therefore, the Social Democrats want to postpone the timetable. It was hardly higher electricity prices that the government and SD promised the voters, emphasizes Fredrik Olovsson.

It risks giving higher electricity prices across the country. And affecting families who are already struggling.

But will it get better if we postpone it? Or should we stop it?

The first thing is to pause the transition now. We believe that a better analysis is needed, which includes all the damages that the Swedish economy risks. We don't think that's included, he says.

Compensate electricity consumers

Olovsson suspects that electricity producers can come out as winners, even though they are among the loudest critics of the new model for electricity transmission.

Then you must also have a plan for how to compensate the users. There is a distribution policy in this as well, not just between countries, but also in Sweden, says Olovsson.

This is what Energy Minister Ebba Busch (KD) said when the issue was raised on Monday at a meeting with the Sydsvenska Chamber of Commerce – which is part of the chorus of critics.

It's going to be a huge mess if this goes badly, but it's too early to say if it will be like that, she said.

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

More news

Tesla's quarter worse than expected
2 MIN READ

Tesla's quarter worse than expected

Fixed interest rate and tech uncertainty – Wall Street fell
1 MIN READ

Fixed interest rate and tech uncertainty – Wall Street fell

Microsoft better than expected – but the stock falls
1 MIN READ

Microsoft better than expected – but the stock falls

Rental Rate Reduction May Be Delayed – Fed "in Waiting Mode"
2 MIN READ

Rental Rate Reduction May Be Delayed – Fed "in Waiting Mode"

The interest rate remains unchanged in the USA
2 MIN READ

The interest rate remains unchanged in the USA

Trumps Cabinet Wants Higher Tariffs on China
1 MIN READ

Trumps Cabinet Wants Higher Tariffs on China

Så skiljer sig Deepseek från Chat GPT
2 MIN READ

Så skiljer sig Deepseek från Chat GPT

New layoffs are expected at Northvolt
1 MIN READ

New layoffs are expected at Northvolt

Reversed Profit Warning from Embracer - Share Rises
1 MIN READ

Reversed Profit Warning from Embracer - Share Rises

Diminished Expectations of Interest Rate Cut
1 MIN READ

Diminished Expectations of Interest Rate Cut

The German government cuts economic forecast
1 MIN READ

The German government cuts economic forecast

EU on the Environment: Must Become More Flexible
3 MIN READ

EU on the Environment: Must Become More Flexible

Volvo buys out Northvolt from Novo Energy
1 MIN READ

Volvo buys out Northvolt from Novo Energy

Calls for legislative change to curb district heating prices
1 MIN READ

Calls for legislative change to curb district heating prices

Swedish Trade wants to freeze starting salaries
1 MIN READ

Swedish Trade wants to freeze starting salaries

Assessors: More Cuts Are Needed
3 MIN READ

Assessors: More Cuts Are Needed

Bankers lower mortgage rates – this is how you should think now
2 MIN READ

Bankers lower mortgage rates – this is how you should think now

The Norwegian Oil Fund's Record Profit – 2,500 Billion
1 MIN READ

The Norwegian Oil Fund's Record Profit – 2,500 Billion

The Central Bank lowers the interest rate – promises no more
2 MIN READ

The Central Bank lowers the interest rate – promises no more

So much has the mortgage rate fallen
1 MIN READ

So much has the mortgage rate fallen