Giants are being forced to cut network fees significantly

Now it's finished. The Energy Market Inspectorate has decided what revenues, and thus prices, the electricity grid companies can pick out from their customers during the period 2020-2023. The decisions are based on the government's amended rules in the area, which were adopted last year. The background was the sharp rise in network prices over a long period of years, up from 60 per cent over a ten-year period.

In total, for the country's approximately 175 electricity grid companies, all of which have a local monopoly, this is a reduction in revenues of SEK 50-60 billion to approximately SEK 166 billion for the years 2020-2023, compared with the last four years.

Exactly what customers get lowered electricity bill, and how much cheaper it becomes, can not say. But the three major Vattenfall, Eon and Ellevio, with about 60 percent of Sweden's electricity customers in their networks, are forced to lower. And that by up to 20-30 percent.

"The big three have increased the most before, they need to make major reductions than other electricity grid companies," says Tony Rosten, Deputy Director General of the Energy Market Inspectorate.

Of course, Waterfall is not satisfied with the expected message. This is a "fairly substantial reduction" in Vattenfall's revenues, according to Magnus Hall.

- The return is far too low. But we now have to adapt, he says, but cannot go into how big price reductions customers can expect.

For a home customer of one of the major ones, however, it may be a matter of thousands of dollars each year. For customers to smaller regional power grid companies, the changes will be less. There may also be increases in some cases, according to Tony Rosten.

The calculation bases for how much the network owners should charge are complicated. But simply put it can be said that the companies are forced to lower their return requirements due to the generally low interest rates in society.

A large part of the companies' costs come from having to make investments in electricity grids and new electricity meters. Overall, the network companies signal increased investment over the next four-year period, but the larger ones plan for lower investments.

And yet it is too early to say hi to the customers. Most of the electricity grid companies have appealed the authority's decision. On the other hand, the tightening of the rules included making the possibility of lengthy appeals processes in court difficult.

- There should be less to complain about, but it remains to be seen how the companies act, says Tony Rosten.

In previous court processes, the companies often won from the battles with the Energy Market Inspectorate, which was a reason for the sharply rising electricity grid bills and that the entire regulatory system was redone.