Sweden seeks fewer electricity price zones for uniform rates

Sweden's government is pushing to consolidate its four electricity price areas into just two, a move intended to create more uniform prices nationwide. The government argues that significant price differences across the country negatively impact competitiveness, household finances, and public trust in energy policy.

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It is not sustainable in the long run.

"It is not sustainable in the long run," stated several Swedish ministers and Sweden Democrats in a joint opinion piece. Energy and Business Minister Ebba Busch highlighted potential benefits, saying, "We envision that a division into only two price areas will entail several advantages." She believes this will lower costs for both households and companies.

To facilitate this change, Svenska kraftnät, Sweden's equivalent of Norway's Statnett, has been tasked with creating a concrete, time-bound action plan. The deadline for this report has been extended and the scope broadened.

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We envision that a division into only two price areas will entail several advantages.

Norwegian industry organization Distriktsenergi, represented by its CEO Knut Lockert, fully supports Sweden's motivation. "We stand 100 percent behind the Swedes' motivation to take action and do something about this," Lockert said. He expressed frustration that similar concerns in Norway have not been taken seriously enough, leading to insufficient action to reduce price disparities.

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We stand 100 percent behind the Swedes' motivation to take action and do something about this.

Lockert noted that Norway currently has five price areas, with plans for a sixth in the north. While he doubts Norway can reduce its areas to just two, he believes a broader discussion about the system's design is necessary, potentially in coordination with Sweden.

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It is not to be understood that there should be such large price differences.