Network price regulation - electricity

The Swedish Energy Markets Inspectorate (Ei) is responsible for monitoring whether the electricity grid operators fulfil their obligations in accordance with the Electricity Act.

This involves for instance inspecting that the companies electricity network fees are reasonable, objective and non-discriminatory.

One electricity grid operator in each area

Approximately 170 electricity grid operators of different sizes are active in Sweden. There is only one electricity grid operator within each geographical area and the electricity consumer have no possibility of changing company. The reason for this is that it would be too expensive to build and run parallel grids.

Ei regulates electricity network fees

Since there is no competition in the electricity network market, the market must be regulated. One of Ei's tasks is to monitor that the electricity network fees are reasonable, objective and non-discriminatory. To monitor this Ei inspects the total revenue of every electricity grid operator, i.e. the maximum charge of customers for each company.

Ex ante regulation of grid operators' revenues

Ex ante regulation of electricity network fees was introduced in 2012. This means that every electricity grid operator has been given a revenue cap for the total amount that they may charge their customers during the years 2012-2015.

The purpose of the revenue caps is that companies shall obtain reasonable coverage for their costs and reasonable return on the capital that is required to run the operation. At the same time, the regulation is designed to ensure that the electricity customers shall have sustainable and stable fees.