Because Sweden’s electricity grids operate on a monopoly market, the Energy Market Inspectorate (Ei) sets a cap on how much grid operators can charge their customers – a total of SEK 326 billion between 2024 and 2027.
Since companies have previously charged less than allowed, there is room for higher fees in the future.
Ei comes to this conclusion after comparing network companies’ profits in 2024 with revenues in the same period, including amounts from a controversial law that entitles the companies to billions in additional amounts by 2027.
In total, the network companies could have withdrawn about 100 billion in 2024, but in the end it was 70. The figures for 2025 have not yet been announced.
– This is an indication that there is scope for relatively large increases in electricity network prices until 2027, says department head Tommy Johansson.
However, the sales limit is an upper limit. Maybe the network companies aren’t using all the space?
– Historically, the larger companies tend to be close to the cap. We received no signals that things would be different now.
The electricity companies only do what they have the right to do, right?
– You can’t say they make mistakes as long as they stay within limits.
As an authority, do you have any tools at all to prevent companies from exhausting the payout?
– No, we work on the basis of a previous regulation. We cannot change the sales limits retrospectively depending on the type of rules.
Björn Berggren, energy expert at Sveriges Allmännytta, also analyzed the numbers and came to similar conclusions.
– There is nothing that forces the electricity network operators to increase as much as they can, but unfortunately I share the view of the Energy Market Authority that even larger price increases are to be expected.
He says some of the largest network companies also received the largest percentage increases in frames compared to the previous regulatory period. For example, Vattenfall, which owns a large part of the network in northern Sweden and other parts of the country.
The state-owned company tells DN that it is investing more than the electricity network fees cover, but at the same time it has to expect further major investments.
Vattenfall recently increased prices by 14 percent, but does not want to comment on future levels.
– According to my calculations, there is scope for a price increase of around 10 to 15 percent for several companies, including Vattenfall, also for 2027, says Björn Berggren.
This was after Swedish electricity network charges had already risen significantly more than the general price increase over time.
Last year, Egg barely survived 2,400 complaints and questions about electricity network operators, mainly related to price increases and electricity fees.
More than ever before, according to the authority, which recently commissioned the government to investigate whether the electricity network operators were charging unreasonably high fees.
Does it lead to fairer network prices or just a status report?
– The mission is based on reporting data, not measures. But we will see what politicians make of the result, says Tommy Johansson from the Energy Market Regulatory Authority.
As DN previously reported, the agency was also given an expanded mandate to oversee regulation that governs network companies’ revenues.
– But this is more about curbing price increases than talking about lowered frames.
Facts.This is how the income for the electricity network companies is determined
● The electricity networks are operated by around 170 network operators in a monopoly market in Sweden.
● The Energy Markets Regulatory Authority determines how much companies can charge over a four-year period.
● This is called the revenue framework, which amounts to about SEK 326 billion for the period 2024-2027, an increase of about 40 percent compared to before.
● The framework aims to ensure that customers pay a reasonable fee and cover the costs of efficient and effective operations.
● The network companies receive incentives to invest in and expand the electricity networks cost-effectively.
● The rules have been criticized for favoring companies too much, and last fall the Riksdag decided to give Ei a larger mandate to oversee regulation.
Source: Energy Market Regulatory Authority
