Schultz Environment Blog

Environment in a broad sense,transports and energy issues. From my local point of view with a global touch!

Monday, November 20, 2006

Prices on electricity falls, but………
In an economical newspaper today I noticed that the price on electricity falls. The reason is that the hydrological balance has changed since some time ago in Sweden. Rain, snow, high temperature and lower price on emission rights decrease the prices. The price on emission rights is now at 8 to 9 euro. Earlier it was at the double and seemed stable at that level. But when we get a cold snap the prices will rise again. Not easy to keep up with these economic mechanisms for the ordinary house-owner.

In Sweden we have had low energy prices since long time compared to the continent. These prices are bond to rise, but there is a strong energy lobbing to keep the prices low from both the unions and the energy consuming companies. Also the house-owners organisation likes to keep the prices low, of course. The energy companies, on the other hand are not that uncomfortable with high prices. They earn quite a lot of money these days per produced kWh. If, and I say if, we want to save energy and get energy efficiency, the price mechanism is of great value. I think we must calculate with higher price on electricity in the future.


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