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Swedish electricity market deregulation to be re-examined

Wednesday, 28 September 2011
Prices have skyrocketed but quality and customer services have not met up to the expectation that was the reason for the  de – regulation in the first place. As such the government and the opposition have started looking into the whether de - regulation of the sector was a worthwhile policy.

The Swedish government will be meeting with the opposition in parliament to conduct an evaluation of how the deregulation of the electricity market in Sweden has affected the price and quality. This comes from the backdrop calls from the opposition parties who ordered an investigation of deregulation last year

“The opposition says it is wrong that deregulation has led to high prices, while we believe that deregulation is good,” said Maud Olofsson, minister of Industries.

“Then I feel it is good that someone from outside may look at this,” add Olufsson.

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  How it actually works is that two finance professors will now help the government to analyze how the market works and how deregulation has affected the prices, choice, service delivery and quality. But also to examine what actually affects the price of electricity and for example the impacts of the expansion of wind power on the Swedish power supply pool.  The investigators should be ready in April next year.

Another factor that assisted in the push for the investigation is a parliamentary decision that the four opposition parties pushed through the parliament last year against the wishes and the will of the government.
The opposition demanded that the government should make a broad review of how deregulation has affected a number of markets such as taxis, domestic air transport, telephone and pharmacies, but stressed that the electricity and rail transport sectors investigation should be examined first.

Maud Olofsson defends the government and now has chosen not to follow parliamentary majority decision in full.
“The railway sector is also subject to review and we will also evaluate how it works.
We are not politically being afraid to examine deregulation. Previously, everything worked well.”

On the whole, the Swedish opposition parties want to see openness in the operations of basic commodities such as power and the rail network. Besides the persistent failure of the Swedish rail transport which has led to many passengers ended stranded either in the summer of winter, the rails company SJ still keep on posting high profits and paying its top management enormous salaries and bonuses.

Also every company such as Vattenfall has been racking in huge profits and spreading the money to its top management as well as paying various forms of bonuses. At the same time power provision has not been effective with nuclear power station grounded at a time when they would have been badly needed.
The customers – especially households have been slapped with huge electricity bills especially during the past tow winters.
By Scancomark.se Team






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