Wednesday, July 24, 2024

Sweden to face soaring electricity prices for another winter

Electricity in Sweden could become exceptionally expensive for another winter, the country’s energy agency said.

Martin Johansson, an expert at the Swedish Energy Agency, told Swedish Television (SVT) that in the winter of 2023, “we can expect volatile and high electricity prices”, reports Xinhua news agency.

Last winter, Swedish households and businesses faced soaring bills, with electricity prices reaching unprecedented levels due to sanctions on Russian gas, though natural gas only accounts for around 3 per cent of energy consumption in the country.

Johansson said: “That situation has not been resolved. We still haven’t managed to replace the natural gas (that used to come) from Russia.”

Although capacity for electricity production has since increased in Sweden, weather patterns will also play a role in the cost of electricity bills, he added.

Abundant wind and rain would boost electricity production, while drought would mean lower production, Johansson said, adding: “Whether the winter is cold or mild will also make a substantial difference.”

Last year, the average electricity price in Sweden was 1.45 kronor ($0.13) per kilowatt-hour (kWh).

This was 128 per cent higher than in 2021, according to the trade organisation Swedenergy.

When the electricity price reached its highest level in 2022, one kWh cost 7.52 kronor, excluding taxes and transmission fees.

To cushion households, especially home owners with electric radiators who were the hardest hit, the Swedish government paid out around 24.4 billion kronor retroactively.

However, Minister for Energy Ebba Busch recently told Radio Sweden that Swedish people cannot count on such compensation this coming winter.

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