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Government proposes compensation for high electricity prices in Sweden

Christian Fernsby |
The government proposes a model for electricity price compensation for households affected by high electricity prices.

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Topics: SWEDEN   

The government allocates almost seven billion, which reaches about two million households throughout Sweden. The compensation model is designed as a staircase that starts with an electricity consumption of 700 kWh per month up to a consumption of over 2,000 kWh per month, where the ceiling for the compensation is.

The payment will be made automatically from the customer's electricity network company, so as a customer you do not need to apply for compensation.

On 12 January, the government announced a proposal for compensation for those households that have high electricity bills due to the current situation in the electricity market in Sweden and in Europe. The compensation covers three months: December 2021 through February 2022.

The government today presents a proposal for a model for compensation that is designed as a staircase where the lowest step is at a consumption level of 700 kWh per month and where the customer receives a compensation of SEK 300 for three months.

The highest step is at a consumption level from 2,000 kWh per month and upwards where the customer will receive SEK 2,000 per month, ie a total of SEK 6,000. See table below for distribution.

The Government will appoint the Chamber of Deputies as the authority that manages the funds and is responsible for contact with the electricity network companies. It is the electricity network companies that decide how the money is communicated to households.

The government plans to submit a proposal for an appropriation for this purpose in an extra amending budget in early February. The Riksdag is then expected to be able to make a decision on the amending budget at the end of February.

Following a parliamentary decision on the amending budget, the money will be available for the electricity network companies to apply for. Thereafter, the first payments to the customer will come as soon as the electricity network companies can administer the support, often as a credit on the electricity network invoice.

The electricity network companies will also be reimbursed for the administrative costs involved in handling the payments to affected customers. The definitive time when each household receives its support depends partly on how the electricity network company has chosen to handle the mediation of the support, and partly on how the customer has chosen to handle its electricity bill.

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