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VATTENFALL

100,000 lose power after Stockholm fire

Up to 100,000 Stockholm households were left without electricity on Sunday night following a series of network faults and a fire at a transformer station.

The power cut occurred at around 10pm on Sunday evening due to faulty circuit breaker at Vattenfall’s transformer station in Danderyd in northern Stockholm. A simultaneous fault occurred at Vattenfall’s facility in Överby in Sollentuna.

Shortly after a fire broke out at a further transformer station in Ensta in Täby as the problems quickly spread through Vattenfall’s grid. A fire also broke out at the Danderyd facility were the first problems occurred.

While most customers regained access to electricity at around 2am on Monday morning the underlying cause of the problems remained unclear.

“The underlying problem and the nature of the connection between the faults is still to be examined.” explained Maria Lidzell at Vattanfall.

The problems caused widespread power cuts in northern Stockholm with up to 100,000 customers of Vattenfall, Eon and Fortum losing power.

Furthermore around 20 trains on the route between Stockholm and Uppsala were cancelled on Sunday evening. Commuter and metro services were also affected by the power cut during the night.

Services are expected to return to normal by Monday morning, according to Henrik Berger at the Swedish Rail Administration (Banverket).

Maria Lidzell confirms that customers have the right to seek compensation if the power cut lasted for longer than 12 hours.

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VATTENFALL

Swedish energy firm racks up giant losses

UPDATED: Swedish energy giant Vattenfall recorded losses amounting to nearly 29 billion kronor ($3.4 billion) on Tuesday as the company continued its battle against increasingly tough market conditions.

Swedish energy firm racks up giant losses
Vattenfall chief executive Magnus Hall on Tuesday. Photo: Fredrik Persson/TT

Hit by asset write-down charges worth 36 billion kronor, Sweden's Vattenfall reported a net loss of 28.812 billion kronor in the second quarter of the year, a huge drop from 2.3 billion kronor in the same period in 2014.

The state-owned energy firm, a major provider of electricity in northern Europe, has been struggling to improve profits for several years, suffering from weak demand and plunging electricity prices.

It attributed 17 billion kronor of the total asset write-downs to the same fall in profits which led to a shock announcement earlier this year that it planned to close Ringhals 1 and 2 in south-western Sweden.

It said at the time that the two reactors were too costly to keep in production until 2025 as previously planned.

“This is of course very negative but unfortunately reflects the reality we're living in,” said its chief executive Magnus Hall in a statement on Tuesday morning.

It also wrote down an additional 15 billion kronor on its lignite, or brown coal, assets in Germany.

Earlier this year Vattenfall announced that 1,000 workers were being let go as part of a series of bids to curb losses, including speeding up the sale of the German plants.

It reported a total turnover of 36.1 billion kronor in the second quarter of 2015 on Tuesday, down from 36.6 billion in the same period last year.

Hall said that the work to tighten the belt was continuing “to identify further reductions in costs”.

Since the Vattenfall Group bought energy giant Nuon in 2009, a deal which has been hotly debated in Sweden, the firm's assets have been written down by over 52 billion kronor. 

Many energy providers in Europe have made huge asset write-downs in the last two years because of weak demand for electricity against a background of sluggish economic activity.

They have also been caught out by the US shale energy boom, which has pushed down the price of coal for power generation, undermining the profitability of new gas-powered plants and some investment programmes.

Vattenfall employs more than 30,000 and has operations in Sweden, Finland, Denmark, Germany, the Netherlands and Britain.