Swedish Government Faces Criticism Over Delayed Electricity Support Amid EU Funding Dispute

Sweden's Energy Minister Ebba Busch is under growing pressure over the uncertainty surrounding the timing of electricity support payments to households amid soaring energy prices caused by cold weather and low wind conditions. Although the government pledges readiness to activate a high-cost protection support if prices stay above 1.5 kronor per kilowatt-hour for a sustained period, Busch has not specified when this support will be disbursed. Opposition leaders, including Mikael Damberg and Fredrik Olovsson of the Social Democrats, have demanded the aid be activated by March 1, accusing the government of passivity and lacking concrete plans. Busch defended the government's approach, highlighting current price levels are lower than when she assumed office and criticized the opposition's stance.

Complicating the domestic issue, the EU is considering a proposal that could require Sweden to shoulder an outsized share—up to two-thirds—of costs for EU-wide electricity infrastructure upgrades. Busch has described this proposal as "bad" and "not okay." Meanwhile, Magnus Demervall, CEO of Företagarna, has criticized the Swedish government for the slow pace at which Svenska kraftnät, Sweden’s grid operator, utilizes the 65 billion kronor accrued from bottleneck revenues, which are vital for enhancing the electricity network and transmission capacity. He warns that delayed investments harm business growth and job creation. Svenska kraftnät's Johan Ulleryd acknowledged bureaucratic delays but emphasized efforts to expedite necessary infrastructure projects.

This dual pressure highlights Sweden's struggle to balance immediate relief for households facing high electricity costs with long-term energy infrastructure needs, further complicated by contentious EU financial demands.