Home HomeSwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Elkritiken: "Sverige den stora förloraren"

"Disaster for Swedish competitiveness". The criticism is scathing against Svenska kraftnät's new system for electricity transmission, which is expected to raise electricity prices. I actually don't know what will get better, says electricity market analyst Mats Nilsson.

» Updated: 11 September 2024, 23:19

» Published: 29 August 2024

Elkritiken: "Sverige den stora förloraren"
Photo: Janerik Henriksson/TT

He does not understand why Svenska kraftnät (SVK), despite criticism from both consumers and electricity producers, is pushing so hard for this new model that aims to make electricity transmission more efficient through, among other things, increased trade.

The more mathematical model that is supposed to calculate a more efficient way to transport electricity between the ends of the country and within the Nordic region will instead highlight all the limitations that exist, according to Nilsson.

Then there will be less trade and thus higher prices, says Mats Nilsson, who is also active as a lecturer in environmental economics at Södertörn University College.

Even higher during the winter

And, unlike SVK's analyses, he sees the electricity price rising throughout the country, even in southern Sweden. And it will be even more so during the winter half-year when electricity consumption and prices tend to be higher, compared to today's system.

For electricity-intensive industry, this will be a "catastrophe", according to Nilsson. The Swedish Forest Industries Federation, SKGS, which has warned of sharply increased electricity prices, has also tried to persuade both the government and SVK to refrain from introducing the model.

There are variants

The only winners of this will be Norway. And Sweden is the big loser, says Mats Nilsson, pointing out that our western neighboring country has a deficient electricity grid and can now use Sweden's for transport southwards.

True, EU rules say that Sweden and the Nordic region must change the model, but there are other variants that would have been better, according to Nilsson.

Magnus Thorstensson, responsible for the raw market at the industry organization Energiföretagen, joins the very critical chorus.

We do not think that SVK takes sufficient responsibility. We lack consequence analyses, he says.

Benefits from higher price

Electricity producers can, however, benefit from this.

So higher prices mean a higher income. For producers, he says.

But despite Thorstensson representing the electricity producers, Energiföretagen is against it.

It will be very difficult for smaller actors on the market. Because you get a completely different way of trying to make price predictions. And it favors the large and not the small. There is a risk of driving consolidation on the market as well. And that is not good.

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

More news

Major Banks Lower Mortgage Rates
1 MIN READ

Major Banks Lower Mortgage Rates

Major Banks Lower Mortgage Rates
1 MIN READ

Major Banks Lower Mortgage Rates

Central Bank Economist: Central Bank Cuts Interest Rate Too Late
2 MIN READ

Central Bank Economist: Central Bank Cuts Interest Rate Too Late

How You Are Affected by Lowered Interest Rates
2 MIN READ

How You Are Affected by Lowered Interest Rates

The Central Bank doubles down - uncertainty after Trump's victory
2 MIN READ

The Central Bank doubles down - uncertainty after Trump's victory

Inflation upswing does not threaten interest rate cuts
3 MIN READ

Inflation upswing does not threaten interest rate cuts

Stockholm Stock Exchange Rises at Opening
1 MIN READ

Stockholm Stock Exchange Rises at Opening

Most up on Asian stock exchanges
1 MIN READ

Most up on Asian stock exchanges

This is how your wallet can be affected by Trump's victory
2 MIN READ

This is how your wallet can be affected by Trump's victory

Cheerful on Wall Street after Trump win
1 MIN READ

Cheerful on Wall Street after Trump win

Thousand-kronor notes to be picked up when the Central Bank increases the pace
3 MIN READ

Thousand-kronor notes to be picked up when the Central Bank increases the pace

Swish up and running again after disruption
1 MIN READ

Swish up and running again after disruption

Trump's company is soaring on the stock exchange
1 MIN READ

Trump's company is soaring on the stock exchange

Swedish Export Threatened by Trump Victory
2 MIN READ

Swedish Export Threatened by Trump Victory

Sameby's appeal against mining company rejected
1 MIN READ

Sameby's appeal against mining company rejected

Inflation Expectations Fall
1 MIN READ

Inflation Expectations Fall

Better than expected for Novo Nordisk
1 MIN READ

Better than expected for Novo Nordisk

No "Trump Effect" on the Stockholm Stock Exchange
1 MIN READ

No "Trump Effect" on the Stockholm Stock Exchange

Stock Market Euphoria as Trump Heads for Victory
2 MIN READ

Stock Market Euphoria as Trump Heads for Victory

Rush on the Tokyo Stock Exchange after the election night
1 MIN READ

Rush on the Tokyo Stock Exchange after the election night