Soaring utility fees put pressure on Swedish households

Welfare collapse

Published 21 November 2024
- By Editorial Staff
Many Swedes today struggle to pay for basic living expenses.

The prices for water, heating, electricity, and waste management have skyrocketed to record levels in 2024, placing many Swedish households under severe financial strain and, in the worst cases, risking eviction from their homes.

– These are unavoidable costs on monopoly-like markets, says Joachim Höggren from the Nils Holgersson Group, which surveys Swedish fees and charges.

– It’s clearly impactful, he adds.

In total, fees for district heating, electricity distribution, waste management, and water and sewage increased by 13 percent this year – the largest annual rise recorded since measurements began in 1995.

District heating prices rose by 15 percent, water and sewage by 14 percent, and waste management and garbage collection saw an average increase of 8.6 percent. Electricity distribution fees also increased by an average of 5 percent compared to last year, according to the report.

Suppliers cite higher fuel costs and increased investment expenses as reasons, but these explanations do not account for the significant price disparities between Swedish municipalities.

– The vast differences are the puzzling part, says Höggren.

Large Discrepancies Between Municipalities

In Nordanstig municipality, costs for water, heating, electricity, and waste services are nearly double those in Luleå – with an average of SEK 41,450 per apartment compared to SEK 23,111.

– They need to explain better. Otherwise, people don’t understand what they’re paying for, Höggren continues, noting that fees are expected to continue rising next year and beyond. The current low price increases seem to have little effect on this trend.

– What we’re seeing is that the increases persist. Many municipalities are raising their fees above historical averages, he concludes.

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