Lower electricity bills for Swedes

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Companies using old networks will not be allowed to charge as much as companies with modern systems. (iStock)
Companies using old networks will not be allowed to charge as much as companies with modern systems. (iStock)
Swedes may receive lower household bills in the future following a government decision to introduce tighter rules for electricity companies.

The new rules mean that companies operating electrical systems that are older than 40 years will not be allowed to charge as much as companies that have newer ones.

The Swedish Energy Markets Inspectorate is hoping that the new rules will make pricing procedures clearer both for electricity companies and for consumers.

Moreover, it can give companies an incentive to update their systems, Inspectorate chief Anne Vadasz Nilsson told Swedish Radio News. She argued that this is especially important for Sweden’s ability to handle the expansion of wind power, for instance.

The new rules, which would apply from 2016, can lead to electricity companies’ revenues being cut by several billion krona every year. At the same time, Swedish families may receive cheaper bills.

Network fees comprise about a quarter of the total electricity bill for the average Swedish household, but that figure is significantly higher in the countryside. Network fees are regulated by the Energy Markets Inspectorate.

Related stories from around the North:

Canada: Canada’s Northwest Territories unveils ambitious energy plan, CBC News

Finland: Finland EU’s third largest user of renewable energy, Yle News

Sweden:  Sweden shares top global energy ranking, Radio Sweden

United States:  Ex-commissioner calls for Alaska energy mega-projects analysis, and ‘call bluff’ on North Slope gasline, Alaska Dispatch

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