SHARE
COPY LINK

RAIN

Record rains dampened Swedish electricity cost

Statistics show that 2012 was one of the wettest year since records began, which spoiled many a Swede's summer but also contributed to keeping down electricity prices.

Record rains dampened Swedish electricity cost

The national average precipitation for 2012 clocks in at 790 millimetres, a rain record only beaten by 1998 and 2000 since the Swedish Meteorological and Hydrological Institute (SMHI) began keeping records in 1860.

The wet summer takes most of the credit. The towns of Linköping, Västerås and Piteå all broke their local rain records.

“What happened was that a high pressure weather system over southern Europe made low pressure weather travel up towards us,” meteorologist Lisa Frost told the TT news agency.

But while many Swedes were unhappy at seeing their summer holidays rain away, there was one discernible advantage. The reservoirs were filled up.

Sweden generates much of its power from hydroelectric dams.

Only once before have Sweden’s dams produced more energy than they did in the past year, Swedenergy (Svensk Energi), the industry’s umbrella organisation, said in a statement.

“We’ll be able to call this a record year when we sum up the electricity year,” said Folke Sjöbohm, power systems head at Swednergy.

He told TT that Sweden’s electricity production should clock in at 160 terrawatt hours for 2012.

“Most of it from the hydroelectric dams.”

However, Sjöbohm also pointed to figures that electricity generation from wind turbines increased this year, as it has done most years, in addition to Sweden’s nuclear reactor fleet experiencing less disruption than in 2011.

“We reached 60 terawatt hours this year and it’s been many years since Swedish nuclear energy performed that well,” Sjöbohm said.

Swedish power company Vattenfall said that average electricity prices, both for customers on one-year and three-year contracts, were the lowest since 2005.

TT/The Local/at

Follow The Local on Twitter

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

ELECTRICITY

KEY POINTS: How will Spain tackle rising electricity prices?

On Tuesday, the Spanish government approved a raft of measures to help reduce the ever-increasing electricity bills that those in Spain have been facing in recent months. Here's how they plan to do it and what measures will be in place going forward.

KEY POINTS: How will Spain tackle rising electricity prices?
How the Spanish government plans on reducing electricity bills. Photo: Michael Schwarzenberger / Pixabay

Electricity prices have been rising to record levels recently, with one of the highest prices yet at €172.78 /MWh, expected on Wednesday, according to electricity market operator OMIE. 

Here’s how the government plan on lowering the price of electricity in Spain. 

Prohibiting companies from cutting off electricity for low-income families

The government has approved a new rule which states that vulnerable consumers (families with low incomes) will be able to benefit from 3.5kW of power – sufficient for an average household for six months – in the event that they are unable to pay. This means that the limit at which companies can now cut off the electricity supply of the most vulnerable has been extended from four to ten months.  

Tax cuts

Special tax on electric power has also been dropped from 5.1 percent to 0.5 percent, as promised by Prime Minister Pedro Sánchez during his interview on TVE on Monday. The suspension of the tax on electricity production has also been extended.  

Electricity auctions

One of the most innovative decisions among these new measures is that the government will call auctions in which the large electricity companies such as Endesa, Iberdrola, Edp, and Naturgy will be obliged to sell a percentage of the energy they generate.  

These auctions, which will have a minimum price to guarantee production costs, will be attended by small trading companies and large industries. These companies will then be able to purchase energy cheaper than in the current wholesale pool. Mainly nuclear and hydroelectric plants will participate in this plan.

The government announced that the first auction will be called before the end of the year. 

Putting a cap on gas prices

During the next two quarters, the price of gas consumed by households will not be updated in accordance with market prices.

Third deputy Prime Minister Teresa Ribera explained that a price hike of more than 28 percent for gas in the wholesale market is expected, while on average the regulated rate will rise below five percent.

In addition, until March 31st 2022, the government will tax the profits of the electricity companies, due to the rise in gas prices. They have established a cap of €20 euros per megawatt hour for gas, and when it rises above that price, the extra profits obtained by the companies will be charged a tax that will be used directly to reduce electricity bills.

Maximum and minimum reservoir levels

After the controversial drainage of reservoirs by the electricity companies coinciding with the maximum prices in the wholesale market, the government has decided to set maximum flow levels that can be discharged each month, and minimum levels that must be maintained in the reservoirs.

This prevents an excessive amount of water from being drained. It will be the hydrographic confederations that will set these amounts.

READ ALSO:

SHOW COMMENTS