Signal & Brus

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The height of irony must be when politicians hand out “high-cost protection” so that people can afford to pay the taxes.

Dagens Industri reports that electricity support may be introduced again. High electricity prices are looming ahead of winter. The politicians will then step in to help households with their bills.

It sounds caring—until you look at what the bill contains.

First we pay for the electricity. Then come the grid charge, energy tax and VAT. We even pay VAT on the energy tax. In other words, the state is not content with taxing our electricity consumption. It also taxes the tax.

The standard energy tax is SEK 0.36 per kilowatt-hour in 2026. Including VAT, it is SEK 0.45. A household using 20,000 kWh a year therefore pays SEK 9,000 solely in energy tax and VAT on that tax. VAT on the electricity itself and the grid charge is added on top. The energy tax is lower in certain municipalities.

And when the total becomes too high, the same political system presents itself as the rescuer.

First they take the money. Then they give some of it back and call it support.

Electricity prices are of course affected by more than taxes. Weather, generation and transmission capacity all matter. But the tax component is a political decision. Moreover, when the electricity price rises, the amount of VAT in kronor also increases, even if the energy tax per kilowatt-hour remains the same.

The electricity tax was actually reduced at the turn of the year. Good. Do more of that. Letting people keep their money from the outset is more sensible than first driving up the bill with taxes and then discussing how some of it should be refunded.

I want to see a substantially lower electricity tax. Electricity is essential to making everyday life work. We are also being urged to electrify both transport and heating. It is therefore strange to treat every kilowatt-hour consumed as an opportunity to fill the state coffers.

Politicians are welcome to arrange an electricity supply that works and conditions that households can afford. But I find it hard to be impressed by their generosity when they hand out money so that we can pay a bill they themselves have made more expensive.

What we need is high-cost protection against politicians’ surcharges.

The illustration is AI-generated.