Expert Criticism Mounts Against Swedish Government's Electricity Cost Protection Measures
Experts criticize the Swedish government's electricity cost measures as ineffective and insufficient.
- • Critics label the high-cost protection as largely ineffective.
- • Sweden's tax reduction is minimal compared to Denmark's substantial cut.
- • Experts call for fundamental changes in energy production.
- • The measures are set against a backdrop of continuing high electricity prices.
Key details
The Swedish government’s newly announced high-cost protection scheme and electricity tax reductions are facing intense scrutiny from energy market experts. At a press conference on September 18, 2025, Energy Minister Ebba Busch of the Tidöpartierna coalition claimed the measures would provide substantial support for consumers struggling with high electricity bills. However, analysts like Bengt Ekenstierna are not convinced, deeming the high-cost protection a "bluff" and predicting it will ultimately have little financial impact on consumers.
Ekenstierna pointed out that the protection only kicks in if electricity prices exceed 1.5 SEK per kilowatt-hour, a threshold he believes is unlikely given the current market conditions, where prices have not surpassed 1.20 SEK since 2022’s energy crisis. His concerns were echoed by Mats Nilsson, who asserted that the proposed scheme set the activation price too high to effectively mitigate current issues, suggesting more sweeping reforms are necessary to address the underlying weaknesses in Sweden's electricity production.
Moreover, the criticism was compounded by comparisons to Denmark, where the government recently reduced its electricity tax by a striking 95%. In Sweden, the tax was reduced by only 10 öre (around 20%), which experts argue is insufficient for meaningful relief, especially among low-income households. Both Ekenstierna and Nilsson advocate for a more aggressive approach akin to Denmark’s that could better support consumers and aid in the electrification of various sectors, including transportation.
In summary, the proposed measures are under fire for their potential ineffectiveness, with calls for more comprehensive solutions to better serve the public’s needs in the face of ongoing high electricity prices.