Today Ellevio received a positive decision from the Swedish Energy Markets Inspectorate (Ei), regarding harmonised pricing between three of Ellevio’s network areas. Network prices currently differ substantially between rural and urban areas. Customer prices are much higher in rural areas with fewer customers to share the costs of the networks, and the difference will only increase as urbanisation continues. For us, it is only natural that a connection to the power grid should cost the same no matter where you live.
The three areas now joined together are Västra Svealand-Västergötland, Dalarna-Södra Norrland and Stockholm. The west coast remains as a separate area. Today’s decision allows us to continue with the price plans that we communicated to our customers before summer.
Investigation regarding the next regulatory period
In addition, earlier this week, Ei presented an investigation outlining their proposal for the main direction of the regulations for the third regulatory period, from 2020 to 2023. The investigation contains positive parts, but also sections that require further assessments.
We are currently facing the biggest transformation of the energy system in modern history. Our politicians have set out a target of a fully renewable energy system by 2040. It is our view that the investigation does not reflect the government's ambition level. Instead, we risk:
- Jeopardizing large parts of the investments in the power grids - contrary to the need for continued efforts to modernize the networks for the future.
- A return to a more short-term regulation that creates uncertainty for both customers and the industry, with the risk of major fluctuations in customers' electricity grid prices.
- To create a situation where we return to ex-post regulation.
However, we are pleased to see that the investigation has taken our appeal for changed depreciation periods into consideration. We have advocated for more diversified depreciation times in order to better reflect the real value of the assets. The report is now on referral until January 2018 to about 40 different agencies, including our industry association Energiföretagen Sverige. Ellevio is also preparing an answer to the referral.