Our work for sustainable profitability
Ellevio's financial responsibility means that we will ensure financially stable operations for our customers, investors and employees over time. In this way, we can make the necessary investments to continue to have a sustainable electricity network for our customers in the future, while at the same time providing a reasonable and sustainable return to our investors and being a good workplace for our employees.
We work continuously to streamline operations and invest in electricity networks. The need for investment is enormous over the next 25 years. This is partly due to the fact that the Swedish electricity grid is beginning to reach its maximum lifespan, and partly because we are in the middle of an electrification wave with rapid technological development and the transition of society to renewable electricity. The electricity networks we are now building must be dimensioned to function in the long term, and this places high demands on the long-term perspective of both Ellevio and our owners. At the same time, our operations are regulated, and the regulation periods extend over four years at a time.
Driving forces behind investment requirements
There is a rapid and extensive electrification of society. Forecasts indicate that investments corresponding to SEK 670 billion will be needed in the Swedish electricity network by 2045. At the same time, the need for electricity is expected to more than double. Climate change is a strong driving force behind this, and the transport sector and industry are increasingly demanding electricity.
In addition, the electricity grid will need to be adapted for a more variable electricity production. This means that the electricity grid must be built for flexibility and have resources for storing electricity.
Technological advances in, for example, solar panels have made it possible for more people to produce electricity for their own use and for sale at a reasonable cost. We are thus moving towards a few large electricity producers to a number of small ones. This also places new demands on the electricity network.
Our financing does not affect customers' prices
Electricity network companies conduct monopoly operations that are subject to state monitoring and regulation through the Energy Market Inspectorate (Ei). Revenue from operations is determined by the Energy Market Inspectorate and the regulation must ensure that the electricity networks maintain good quality and long-term security.
The electricity network companies receive compensation for reasonable operating costs and a reasonable return for investments in and development of the electricity networks. The permitted income, i.e. how much we may charge our customers, is determined on the basis of a set of rules that is exactly the same for all Swedish electricity network companies.
Who owns a business (municipality or private or otherwise) or how the business is financed has no effect on permitted income, no electricity network company can charge more to its customers than the revenue regulation allows. This means that financing or interest rates have no effect on customers' prices.
Text updated: 2 December 2021