Swedish energy minister demands immediate removal of controversial electricity tariffs

Sweden’s energy minister Ebba Busch has issued a direct order to power grid companies to scrap newly introduced capacity-based electricity tariffs, after several firms announced plans to keep the charges despite a government decision to abolish them.

“If the grid companies found last week’s signal unclear, let me be absolutely clear: remove the tariffs,” Busch told public broadcaster SVT Nyheter on Monday.

The so-called “effect tariffs” were rolled out by multiple grid operators following regulations from the Swedish Energy Markets Inspectorate (EI), with all companies originally required to implement them by January 1, 2027. However, the government last week reversed the mandate entirely, citing inconsistent application and unfair burdens on households.

At the same time, the EI was tasked with proposing a new model for capacity-based pricing by April 12, 2027, aimed at making costs “simple, fair, and transparent” while encouraging efficient use of the power grid.

Grid companies, including major operators Ellevio and Telge Energi, have pushed back, arguing that unwinding the tariffs immediately would create instability.

“This is a complex reform that has taken years to implement. It can’t be removed overnight and then reintroduced next year,” said Jesper Liveröd, Ellevio’s press chief. He acknowledged the need for clearer, more uniform rules but stressed that “customers and businesses need long-term predictability.”

Telge Energi’s market director Anders Björklin said the company was analyzing the situation but would await further guidance from the EI. The inspectorate confirmed it would “expedite” its review in collaboration with industry groups and consumer representatives.

“We will investigate how a new design for effect tariffs could be regulated and implemented,” said Therése Hindman Persson, deputy director-general of the EI. “We don’t yet know what our proposed model will look like—or whether capacity-based fees will be reintroduced at all.”

The government’s directive emphasizes giving consumers better tools to manage costs while ensuring the tariff system supports an efficient electricity network.