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Sweden’s electricity price subsidy now postponed until February

Households and businesses will not receive any compensation for high power prices over the last year until February at the earliest, Swedish government ministers confirmed at a press conference on Wednesday.

Sweden's electricity price subsidy now postponed until February
Sweden's business and energy minister Ebba Busch delivered the bad news at a press conference on Wednesday. Photo: Screen shot/Swedish government

During the election campaign, the Moderate, Christian Democrat, and Liberal parties made a common election promise to have a system of compensation “in place” by November 1st. 

“If we win the election and Sweden receives a new government, we are are going to make sure that high-cost protection against the current extreme electricity prices for households and businesses will be in place by November 1st,” they wrote. “Household finances will be rescued in good time for Christmas. That is a common election promise.” 

But at a press conference on Wednesday morning, social insurance minister Anna Tenje said that payments would not begin until well into 2023. 

“The payments will begin in February if nothing unexpected happens,” she said. 

For businesses, the wait could be even longer. 

“The first step will be payments to households. The second stage will be payments to businesses, and that question is still being decided,” energy and business minister Ebba Busch said. 

At a press conference, Magdalena Andersson, leader of the opposition Social Democrats accused Sweden’s prime minister of “lying to the Swedish people right in the face”. 

“When it comes to high cost protection for electricity, he was very clear ahead of the election that it would be in place on November 1st,” she said. “He couldn’t explain how, but it was a clear promise to the people of Sweden and that has now been broken. It’s not as if anything has happened to explain why he couldn’t live up to the promise.” 

“Don’t make lofty promises that aren’t trustworthy. That’s what I said during the election campaign.” she added.

The Social Democrats’ energy spokesperson, Fredrik Olovsson, said that the government should give a new instruction to the country’s grid operator Svenska Kraftnät, so that even people in northern Sweden could receive the subsidy. 

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POLITICS

Swedish finance minister: ‘Decreasing inflation is a sign of improvement’

Sweden’s finance minister on Monday put forward an amendment budget more than four times the size of last year's restrained spring bill, amid hopes the 'economic winter' is beginning to thaw.

Swedish finance minister: 'Decreasing inflation is a sign of improvement'

“We are in the midst of an economic winter, with weak growth and rising unemployment. The economic situation is challenging, but the decreasing inflation is a sign of improvement,” said Finance Minister Elisabeth Svantesson as she submitted her budget to parliament.

KEY POINTS:

The bill contains investments to the tune of 17.3 billion kronor, in stark contrast to last year’s spring amendment budget which added only four million to the main autumn budget. Of these, 16.8 billion kronor is allocated to new proposals, rather than various automatic increases.

The government said in a statement that its primary aim was to “lay the foundations for recovery, higher growth and better welfare” as inflation drops and any recession impact is made clear.

Most of the investments had already been announced in dribs and drabs before the day.

“We are reinforcing healthcare with additional resources to the regions and investments for more jobs,” said Svantesson in the statement, as she awarded healthcare services six billion kronor.

Swedish regions have previously warned that they may have to lay off healthcare staff due to the financial crisis, although the centre-left opposition has criticised the six billion as not enough.

“Safety and security in Sweden must increase, which is why we are making additional investments in law enforcement authorities and defence,” continued Svantesson, pouring 1.4 billion kronor into increasing prison cells, and 1 billion to stepping up airport security and baggage handling.

Swedish inflation according to the consumer price index fell to 4.1 percent last month, lower than expected, but Svantesson warned that the tough economic situation wasn’t over.

“We can clearly see that the fight against inflation has produced results, but we must remain persistent and lay the foundations for making Sweden safer, more secure and wealthier,” she said.

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