The high electricity prices in southern Sweden are largely due to the export of electricity.
The Swedish electricity is not enough to satisfy both Swedish customers and European customers, but in order to be able to export electricity to, for example, Lithuania goes in and helps.
It raises prices because the pricing differs so much between the Swedish market and the European one, and because the highest bid sets the price for electricity to be delivered the next day.
In the video, Bengt Ekenstierna explains how Swedish electricity prices are determined and how his model could remedy the problem.
The electricity price is affected by different markets
Bengt Ekenstierna has 40 years of experience in the energy industry and explains why electricity prices hit records in the last month in electricity area 4.
- There are three reasons for that, firstly we have dismantled electricity production in southern Sweden, the second is that we have a gas crisis in Europe, says Bengt Ekenstierna and continues:
- The third is that we have a pricing model in the European system that has broken down, when you get such big differences in pricing between the Swedish market and the European market.
The Beken model is praised and criticized
In short, the model is about the electricity consumed in Sweden being priced according to what it costs to produce, and the electricity we export to have its own pricing.
The model has received both praise and criticism.
The Left Party has shown interest and proposed a similar solution themselves.
The Beken model has also been called impossible under current EU legislation.
- There is a line in the EU directives that you can say the model conflicts with, but now the head of the EU and Germany's Minister of Economy have put their foot down and said that we have to change the market model, so I think there is good insight to be done in Brussels that, says Bengt Ekenstierna.