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Consumer advocates urge government intervention in electricity market amid rising prices in Scandinavia

Tuesday 10th 2024 on 14:48 in  
Iceland

Consumer advocates are urging the newly formed government to intervene in the electricity market due to rising energy prices impacting households and small businesses. Concerns have been raised about an over 13% increase in electricity costs within the last year, with the real increase, accounting for inflation, being over 8%. This marks the highest rise in thirteen years and is attributed to stagnation in energy production.

The head of the consumer organization suggests implementing a price cap on electricity sales to households, proposing that 5% of the energy produced be sold at reduced rates. This initiative is seen as a form of fee for utilizing shared resources, as households consume only a small fraction of the total energy generated.

With further price hikes anticipated based on wholesale market trends, the organization warns that the situation could mirror challenges faced in other European countries, where energy costs have become a significant burden on family finances. Advocates argue that mandating energy producers to allocate a portion of their output to the household market could mitigate these increases and provide financial relief to consumers. If left unaddressed, there is a strong possibility that electricity prices will surge dramatically in the near future.

Source 
(via ruv.is)