Sweden pauses electricity cable to Denmark - after new row with EU

Sweden is escalating the conflict with the EU over the controversial electricity billions. The government is putting a multi-billion euro project with Denmark on hold after new demands from Brussels on how Swedish congestion revenues should be used. The dispute is over who should control the money from the Swedish electricity system - Sweden or the EU.

The conflict between Sweden and the EU over Swedish congestion revenues is now escalating. The government is accusing Brussels of trying to restrict how Sweden can use the billions from the electricity system - money that the government says should go to Swedish electricity customers, Swedish electricity production and the expansion of the Swedish electricity system. In response, Sweden is now pausing a major cable project to Denmark.

– The EU should not get Swedes' electricity money. Brussels is not listening to us right now. That's why we are pausing the planning of new cables for electricity exports, says Minister of Energy and Economic Affairs Ebba Busch according to the government press release.

The dispute is about how the congestion revenues should be used. The money arises when the price of electricity differs between different electricity areas and is transferred via the electricity grid. At the end of the year, Svenska kraftnät had around SEK 85 billion in its account.

The European Commission wants to control spending more tightly and prioritize joint energy projects and expanded electricity networks within the Union. Sweden instead demands greater national control over the money.

Government: The money will benefit Sweden

The government wants to be able to use the bottleneck revenues for Swedish investments, electricity subsidies and planned electricity production such as hydropower and nuclear power.

– The important thing is that we win the fundamental battle against the EU, that Swedish customers' electricity money belongs to Sweden, says Ebba Busch to DN.

Meanwhile, the Konti-Skan Connect project - a new electricity cable between Sweden and Denmark that would replace older lines - is now on hold. The project is worth several billion SEK and has been a priority for the EU.

New conflict after earlier Swedish victory

Earlier this year, Sweden succeeded in stopping the EU's plans to take 25% of member states' bottleneck revenues for joint projects. But in the continuing negotiations, a new conflict has arisen over how the money can be used nationally.

– There are proposals that are unacceptable to Sweden, says Ebba Busch.

The government believes that the EU's approach risks reducing Sweden's ability to strengthen its own electricity system, while electricity customers are already footing the bill through high charges and electricity prices.

Negotiations with Brussels will continue throughout the year.