Electricity costs different in Sweden’s North and South

Photo courtesy of Radio Sweden.

Swedes in south Götaland pay 30 öre more, per kilowatt-hour, than those in Norrland.

A recent reform of the electricty market into four price band areas has led to large differences in power bills paid between those living in the north and south of Sweden.

The explanation is that southern Sweden receives its electricty from wind farms in Denmark where wind production has been low in recent weeks.

The north of Sweden is powered by nearby hydro-electricty stations. Cost is related to distance.

The new electricty market reform brought in on November 1st has been criticised by many, including the Swedish Federation of Small Businesses (FF).

“I think that it is not good that Swedish companies pay higher prices if it is not windy enough in Denmark. We must ensure that Swedish companies have the right price for their electricty, ” says Camilla Littorin, secretary of FF, to Swedish Radio News Ekot.

The idea with the new electricity market reform is that businesses and households in Svealand and Götaland should pay a higher electricity price because of the limitations in production and transfer capacities in the area.

The price difference between north and south is simply a “bottle neck fee” (limitation fee) that is put on the price, and that will be given to stately run Svenska Kraftnät

In the first two weeks since the reform was introduced, the electricity market has generated over 100 million kronor ($14.8 million) that Swedish Kraftnät will be used to improve the Swedish electricity grid.

Radio Sweden

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