Swedes Prepare to Shiver
Posted on August 5, 2022 by Baron Bodissey
The Swedish government is advising its citizens to prepare to wear outdoor clothing indoors and take fewer showers next winter, because the evil Vladimir Putin has driven up the price of electricity.
Many thanks to LN for translating this article from Samhällsnytt:
Expensive winter for householders — may face an additional SEK 50,000 in electricity bills
The popularly dubbed “sosse [socialist] prices” on electricity — or “Putin prices”, according to the Socialist government — may hit homeowners’ finances brutally this winter. You should prepare for a full 50,000 kronor [$5,000] increase in your electric bill for the cold months, experts warn.
It is already clear that the month of July, despite the heat, was the most expensive ever for electricity consumers. But that’s nothing compared to what lies in store for this winter when the cold hits. Homeowners who can’t put aside an extra SEK 50,000 to pay electric companies can expect to freeze this winter, have their electricity switched off and end up in court for unpaid electricity bills.
Red-Green energy policy decisions hit hard
The premature closure of nuclear power plants, the large-scale investment in unreliable and inadequate wind power, the interconnection of the Swedish electricity grid with other countries and the introduction of enormously power-hungry IT giants that receive electricity almost free of charge have put Sweden in a serious state of crisis when it comes to the electricity supply.
Warnings have been issued that households and businesses in Sweden may have their electricity cut off at times, something previously associated only with developing countries. Electric prices have also periodically soared to levels that have wrecked the economies of many households and driven companies out of business. However, experts are now warning that prices could be even higher this winter.
No contingency if Putin cuts gas supply
Christian Holtz, an analyst at the energy consultancy Merlin & Metis, tells Dagens Industri that Swedish homeowners should expect a surcharge of SEK 50,000 on top of what they normally pay for electricity this winter, citing Putin’s announcement of a cutoff in gas supplies to the EU as a direct cause.
For Sweden, however, it is about the lack of redundancy in the electricity supply that the red-green and red governments in particular have created through an aggressive premature closure of fully functioning nuclear power plants and a totally inadequate attempt to cover the loss of electricity production with wind turbines. If the now-vanished spare capacity had been left in the system, Sweden would have been prepared for Russian sanctions today.
The situation is further aggravated by the fact that Sweden is affected by other countries’ ill-considered energy policy decisions. This is particularly true for Germany, where the [Swedish] Green Party’s counterpart, the Greens, has been even more successful than Sweden in shutting down nuclear power. The fact that the Swedish electricity market is now linked to Europe’s means that we in Sweden cannot protect our domestic electricity needs and are being dragged into the German electricity crisis, for example.
Delayed development of infrastructure has diverse effects
The delayed development of the country’s electricity transmission infrastructure also means that Sweden’s electricity consumers suffer drastically differently. In the north, where hydropower dominates, electricity prices are relatively low, while consumers in the south, where nuclear power used to account for the lion’s share of electricity production, have been hit by sky-high electricity prices.
“Northern Sweden has a large production surplus with a lot of hydropower and the transmission capacity is not enough to even out prices within the country,” explains Arne Bergvik, an energy strategist at the Sigholm consultancy, whom DI also spoke to.
Temporary price drop due to windy weather
A slight drop in electricity prices has been observed in recent weeks. This is mainly due to windy weather in the country, which has boosted wind turbines. However, the continuation of this weather is not something that should be expected.
“It is partly due to the windy weather that is temporarily boosting wind power production. But unfortunately, it is most likely only a temporary downturn,” says Arne Bergvik.
Electricity prices may increase by three to four times, or even more, this winter
Instead, he agrees with Christian Holtz that Swedish households and businesses must expect electricity prices to continue to skyrocket and the electricity crisis to worsen further with each passing week, saying he “would be surprised” if electricity prices this winter are not three or four times higher than they were last winter, even though they were high even then.
“Next winter may be really tough for electricity users in southern Sweden,” adds Christian Holtz.
He has calculated a figure of 50,000 kronor more in electricity bills for a homeowner who consumes 13,000 kWh from October to March, and the electricity price will rise by SEK 3 plus VAT. At the same time, Holtz warns that it could be even more expensive for those living in southern Sweden, and that it could also be more expensive for everyone if Putin shuts off the gas tap completely in response to the sanctions imposed by the EU on Russia after the invasion of Ukraine. |
