Background information

Due to high energy prices caused by Russia’s war against Ukraine, Sweden has adopted a high-cost ceiling for electricity. EU Electricity Regulation 2019/943 controls the way in which these revenues can be used by national authorities. According to Article 19.4 the national transmission operator can only use them with permission from the relevant regulatory authority, which in the case of Sweden is The Swedish Energy Markets Inspectorate [Energimarknadsinspektionen]. The plan for reimbursement of energy costs for southern regions of Sweden was approved on 3 February 2023, and has been extended to all regions as of 30 January 2023.

Content of measure

The subsidy is administered by the Swedish Social Insurance Agency [Försäkringskassan].The subsidy was rolled out on 20 February 2023. The first energy subsidy was paid out to energy consumers in the energy areas of SE3 and SE4, which are located in southern Sweden. Energy costs in the southern Sweden are significantly higher than in the northern Sweden. Households with electricity contracts will receive the subsidy. If an individual owns multiple properties with separate electricity contracts, they will receive a subsidy for each contract. A total of SEK 17 billion was paid out in February 2023. Energy subsidies for remaining parts of Sweden are now in effect.

Use of measure

4.3 million households received an energy subsidy as of February 2023. In June 2023, approximately 5 million households will have received the second electricity subsidy.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Does not apply to businesses	Applies to all citizens

Actors and funding

Actors	Funding
National government Public support service providers	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Direct consultation outside a formal body	Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Peak or cross-sectoral level

Involvement

The proposal was open for consultative statements before being passed by parliament.

Views and reactions

The Swedish Trade Union Confederation [Landsorganisationen, LO] applaud the decision. Nevertheless, they stress the need to secure the production of electricity in the future, both in Sweden and within the EU.

Confederation of Swedish Enterprise [Svenskt näringsliv] supports the energy subsidy, but suggested that enterprises be compensated proportionately based on consumption by household.

Sources

• 17 August 2022: Högkostnadsskydd för elpriser (www.regeringen.se)
• 17 August 2022: 30 billion in electricity price support for households - and high-cost protection for businesses(ENERGI 30 miljarder i elprisstöd för hushåll – och högkostnadsskydd för företag) (www.nyteknik.se)
• 22 August 2022: The high-cost protection is a good first step (Högkostnadsskyddet på el är ett bra första steg!) (skane.lo.se)
• 25 January 2023: Energy subsidy received by most in February (Elstöd till de flesta i februari) (www.svd.se)
• 17 February 2023: Q&A about the energy subsidy to households (Frågor och svar om elstöd till hushåll) (www.regeringen.se)
• 09 March 2023: Reglering på plats för utbetalning av elstöd till hushåll i hela Sverige (regeringen.se)
• 19 April 2023: Elstöd för privatpersoner i hela landet (www.forsakringskassan.se)