Despite election promises – Sweden’s government raises the electricity tax

Before the election, the right-wing parties promised to reduce electricity tax – but nothing came of it, and now the tax will be raised at the turn of the year instead.

In 2022, the center-right coalition parties invested heavily in attracting voters with the promise of lower electricity taxes, and the Christian Democrats, Moderates, and Liberals all promised that this would become a reality.

For the second year in a row, however, they are doing the exact opposite and instead raising the tax – which has caused irritation and anger among their own voters.

Energy and Industry Minister Ebba Busch (KD) claims that they are still “striving” to keep their election promise of reduced electricity tax, but that Sweden is currently in need of major investments in the “unstable” electricity system, and that this is something that weighs heavier.

“Counteracts electrification”

This year, the tax will be raised by SEK 0.015 per kWh – significantly lower than last year’s SEK 0.045. This means that in just two years, the electricity tax has increased by as much as 12% and, according to the state television SVT, it is about SEK 4 billion in increased costs for Sweden’s electricity customers.

– The tax on fossil fuels is being reduced, but the tax on electricity is being increased, which of course counteracts electrification. It reduces the incentive to switch to plug-in vehicles, which makes it more difficult to achieve the climate goals, comments Erik Thornström, head of taxes and policy instruments at the energy companies.

According to Busch, the government wants to “focus most on what contributes to a stable electricity system that creates the conditions for reaching net zero emissions by 2045″ but still insists that it intends to reduce electricity taxes at some point in the future.