During a press conference on Monday, Minister of Energy and Industry Ebba Busch (KD) announced that a new electricity subsidy for households covering the whole of Sweden will be developed.

This means that now also households in electricity areas 1 and 2, which include northern Sweden, will be paid money.

The new electricity support is based on the period November-December 2022, when the prices between the country's electricity areas were equalised.

Before that, prices were significantly higher in electricity areas 3 and 4 in southern Sweden.

Svenska kraftnät, which has been given the task of designing the electricity support, must test whether it is possible to set a ceiling on electricity consumption - a kind of limit for how many used kilowatt hours support can be granted for.

- If you have too high electricity consumption due to, for example, a large house or a swimming pool, it becomes some kind of ceiling, says Johan Zachrisson Winberg.

"Very harmful"

However, the increased electricity price support may reduce households' motivation to save electricity, and thus in the long run contribute to both electricity shortages and higher electricity prices.

John Hassler, professor of macroeconomics at Stockholm University, believes so.

- Now expectations are being built that the state will step in and compensate when this situation arises again.

That there is no point in being more efficient in your use of electricity.

It is very harmful, says John Hassler to TT.

Hear more about the consumption cap in the clip above.