Why is Sweden so afraid to challenge the EU?

 

Wolfgang Hansson

This is a commenting text. Analysis and positions are the writer's.

Published 17.08

Preferably wine - but without jeopardizing the monopoly. Photo: Schibsted

Sweden is generally very afraid of challenging the EU. When we do that for once, the government is prepared to put Systembolaget's future at risk.

Why not instead challenge the EU when it comes to being allowed to set our own electricity prices and thus save thousands of kroner for Swedish electricity consumers and prevent usurious electricity prices?

Quick version

• The government in Sweden is challenging the EU by risking Systembolaget's future to allow sales directly from Swedish vineyards.
• Critics believe that Sweden should rather challenge the EU to be allowed to set its own electricity prices, which would save Swedish electricity consumers thousands of kroner and prevent extortionate electricity prices.
•  Despite an energy crisis in 2022-23 and proposals from the Beken Team to let Swedish consumers pay for what it costs to produce Swedish electricity, the government and energy minister Ebba Busch seem uninterested in challenging the EU in this area.

I don't mind if it becomes possible to buy a bottle of wine or two from a Swedish winery. As long as it does not jeopardize Systembolaget's future.

Systembolaget contributes both by reducing alcohol-related harm in Sweden and with a fantastic selection of wine and beer.

But I may not think that the issue of farm sales is one of the most pressing social problems. Then energy prices and our energy supply are significantly more important.

Sweden is usually best in class when it comes to applying new EU rules. No other country is so eager to meet demands from Brussels and receive an appreciative pat on the back from EU leaders.

Sweden is putting its foot down in an issue that does not affect all citizens. Photo: Janerik Henriksson/TT

From that point of view, it is welcome that Sweden puts its foot down and challenges the sale of the farm, which of course should be able to be combined with keeping Systembolaget.

But if Sweden is going to challenge the EU, it would be better to do so in an issue that really affects all citizens.

In connection with the 2022-23 energy crisis, a group calling itself the Beken Team put forward a proposal which means that Swedish consumers must pay for what it costs to produce Swedish electricity. Driving the Beken Team is Bengt Ekenstierna, former director of the power company Sydkraft.

The "wrong" party pushed the issue

Today, Sweden often imports the higher electricity prices on the continent. Today's price model means, somewhat simplified, that the more electricity Sweden exports, the more expensive electricity becomes in Sweden. Above all, it is southern Sweden, electricity areas 4 and 3, that are affected. Last winter, both private individuals and companies were forced to pay sky-high electricity bills. Not because the electricity was expensive to produce in Sweden, but because there was a great shortage of electricity on the continent and the prices thus skyrocketed. At times the price was above five kroner per kilowatt hour. Ten times higher is a normal price in Sweden.

          The high electricity prices may return. Photo: Janerik Henriksson/TT

Right now it is not a big problem because electricity prices are relatively low. But that can change quickly depending on geopolitical developments or if we get a hot summer on the continent.

The issue has been topical in the EU election campaign. The proposal for so-called Sweden prices for electricity does not really have an ideological side. But unfortunately, for some reason, it was the fringe party the Left Party that made the proposal theirs. That meant it was quickly labeled as suspect and impossible. If one of the center parties or the Moderates had picked it up, it might have looked different.

 In the election campaign, the proposal was dismissed as unrealistic because it would violate EU-rules. However, no one has been able to specify in what way.

There is nothing to prevent Sweden from introducing its own prices to Swedish consumers. If the EU or other countries have any points of view, they are free to let the European Court of Justice examine the issue.

Not out of solidarity

Should Sweden lose a possible process, it is of course sad and we will have to correct ourselves according to the outcome.

If Sweden wins, it means many thousands of Swedish kroner in saved electricity costs for millions of Swedish consumers.

But the Swedish government and energy minister Ebba Busch seem completely uninterested in pursuing the issue. Instead, they put effort and energy into challenging the EU to allow farm sales. With the risk of Systembolaget disappearing.

As far as I can see, there are no corresponding risks in pursuing the issue of Swedish electricity prices.

But isn't it very disloyal for Sweden to set its own prices?

No, I have a hard time seeing it.

          Above all, Germany has pushed forward the high electricity prices. Photo: Johan Nilsson/TT

What is happening today is that the companies that produce the electricity can pocket the Swedish consumers' money in the form of excess profits. It does not cost them more to produce the electricity, but due to the higher prices on the continent, Swedish consumers must periodically pay excess prices.

Above all, it is Germany that has pushed forward the higher electricity prices. They have refused to introduce electricity price zones according to the EU model to protect their industry in southern Germany. The Germans want to build a new electricity cable, the Hansa Power Bridge, to Sweden to be able to import even more electricity. Sweden hesitates to go ahead with the project because it would risk even higher electricity prices in Sweden.

Shut down nuclear power

In the midst of the worst energy crisis, the German government also decided to shut down three fully functioning nuclear power plants for ideological reasons. Then they sent the bill to Swedish consumers in the form of higher electricity prices.

Swedish electricity prices do not affect other countries. Sweden would continue to export as usual and our neighbors would pay the same prices as today.

I am not an expert in the field. Perhaps there are reasonable objections to introducing Swedish prices for our self-produced electricity that have not come up in the debate. But I am surprised that the government is not doing a proper review of the issue.

It is not enough to simply dismiss the proposal with routine phrases that "it would violate EU rules".

The losers from that are the Swedish electricity consumers.