Background information

The energy crisis caused by the war in Ukraine has resulted in soaring gas prices for Swedish households connected to the gas system in south western Sweden. In order to support these households with their gas bills, the regulation on gas price support (förordning om gasprisstöd) [2023:116] was announced by the government in the beginning of December 2022 and it entered into force on 21 March 2023.

The proposal for the temporary financial support was included in an additional budget amendment for 2023 (extra ändringsbudget för 2023) [2022/23:52]. The amended budget was passed by the parliament (Sveriges Riksdag) on 8 February 2023.

Content of measure

Households that are connected to the western Swedish gas grid and use gas for heating are eligible for the subsidy. The subsidy amount is based on the household’s gas consumption between October 2021 and September 2022. This was a period when gas prices were exceptionally high. The subsidy is paid out to the gas consumer in south western Sweden who, on the 1 February 2023, had a contract with a gas company that owns and operates the gas grid.

The support is paid out by the gas companies to the consumers. The gas companies are thereafter eligible for compensation from the state, both for paid out support as well as for administrative costs with a one-off payment of SEK 200,000 (about €17,200), and an additional SEK 70 (€6) per each gas price support beneficiary.

The measure is said to cost SEK 150 million (€12.9 million) and will be administered by the Swedish Energy Agency (Energimyndigheten).

In the Spring Fiscal Policy Bill for 2023, the government proposed an increase of SEK 15 million (€1.3 million) of allocated funds for the gas price support.

Use of measure

The area covered by the measure consists of approximately 27,000 household customers. Just over 12,500 of these use gas for heating and are therefore eligible for the 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 Company / Companies	National funds

Social partners

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

	Trade unions	Employers' organisations
Role	No involvement	Consulted
Form	Not applicable	Direct consultation outside a formal body

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

• Unknown
• 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 Confederation of Swedish Enterprise (Svenskt Näringsliv) generally believes that support measures with conventional subsidies financed via the state budget, should be avoided. It also stated in its consultation response that compensating some households for increased market prices risks leads to demands for compensation from other groups affected by increased prices.

Sources

• 26 January 2023: Additional budget amendment for 2023 (Extra ändringsbudget för 2023 – Stöd till Ukraina samt åtgärder riktade till företag och hushåll till följd av höga energipriser) (www.riksdagen.se)
• 09 February 2023: Svenskt näringsliv (2023) "Consultation on the draft regulation on gas price support" (Remiss avseende Utkast till förordning om gasprisstöd) (www.regeringen.se)
• 09 March 2023: Government decision on regulation on gas price support for southwestern households (Regeringen fattar beslut om förordning om gasprisstöd till sydvästsvenska hushåll) (regeringen.se)
• 09 March 2023: Regulation [2023:116] on gas price support (Förordning (2023:116) om gasprisstöd) (www.riksdagen.se)
• 13 April 2023: Government proposal 2022/23:99 (Regeringens proposition 2022/23:99) (regeringen.se)