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Ellevio: Power charge changes did not increase company revenue
🇸🇪 Sweden /Energy & Infrastructure

Ellevio: Power charge changes did not increase company revenue

From Dagens Nyheter · () Swedish

Translated from Swedish, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • Ellevio, an electricity grid company, states that neither the introduction nor the removal of a power charge has increased its revenue.
  • The company explains that grid fees are the sole funding for maintaining and expanding Sweden's electricity networks, which require modernization.
  • Ellevio notes that electricity tax and VAT constitute over half of a household's electricity bill, suggesting these taxes should be reviewed to address energy costs.

Henrik Hagberg, head of pricing at Ellevio, clarifies the company's position on electricity grid fees in response to a reader's letter. He explains that the grid fee is the sole source of funding for Ellevio to maintain and develop its electricity networks. Hagberg states that neither the introduction nor the subsequent removal of a power charge has resulted in increased revenue for Ellevio.

The power charge was introduced in January 2025 following a requirement from the Swedish Energy Markets Inspectorate, with simultaneous reductions in fixed and variable fees. However, in March, the government announced that power charges would no longer be mandatory. Consequently, Ellevio reverted to a grid fee structure based on connection size and a variable fee from June 1.

For Ellevio, neither the introduction nor the abolition of the power charge has meant increased revenue.

— Henrik HagbergExplaining the financial impact of the power charge on the electricity company.

When the power charge was removed, the fixed and variable fees were raised to compensate for the lost revenue. Hagberg suggests that the reader likely experienced a lower grid fee when the power charge was in effect. He emphasizes that these changes redistribute costs among customers rather than increasing overall revenue for Ellevio.

The grid fee is the electricity grid companies' only financing for maintaining, renewing, and expanding the electricity grids.

— Henrik HagbergStating the importance of grid fees for network upkeep and development.

Hagberg highlights the necessity of modernizing Sweden's electricity grid, much of which was built in the 1960s and 1970s. He points out that Ellevio has managed significant investments in grid development while maintaining some of the lowest fees for apartment customers and average fees for villa customers. He advises villa customers to reduce their overall electricity consumption and check if their connection size exceeds their needs.

Finally, Hagberg reminds readers that over half of their electricity bill comprises electricity tax and VAT. He suggests that these taxes, rather than grid fees, should be the focus for those looking to reduce household energy costs.

If you want to address household energy costs, it is the electricity tax you should look at.

— Henrik HagbergSuggesting where to focus to reduce energy expenses.
DistantNews Editorial

Originally published by Dagens Nyheter in Swedish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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