Swedish PM Ulf Kristersson shakes hands at EU summit, securing bottleneck fees for national electricity grid expansion.
Swedish PM Ulf Kristersson shakes hands at EU summit, securing bottleneck fees for national electricity grid expansion.
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Kristersson secures Swedish bottleneck fees at EU summit

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Prime Minister Ulf Kristersson has received guarantees at the EU summit in Brussels that Swedish bottleneck fees will only fund expansion of the Swedish electricity grid. The funds will not be used for European projects. Meanwhile, the EU emissions trading system is defended against calls for changes.

At the EU summit in Brussels on March 19–20, 2026, Prime Minister Ulf Kristersson (M) received guarantees regarding Swedish bottleneck fees. These arise from large differences in electricity prices within Sweden and are intended to fund grid expansion or compensate consumers. An EU proposal sought to allocate 25 percent to projects for the common European electricity grid, which Sweden opposed since not all countries have price zones generating such revenues. The joint statement affirmed a 'flexible approach to domestic bottleneck revenues,' eliminating the risk of 25 percent going to Europe, according to Kristersson. 'Our right to decide over bottleneck fees in Sweden is secured. They shall be used to connect our grids in Sweden, just as originally intended. Other countries will not be able to claim them. It is explicitly stated,' he said during a break at the meeting. The summit was overshadowed by high energy prices due to wars in the Middle East, including the US and Israel's war against Iran and Iranian attacks on ships in the Strait of Hormuz as well as a gas facility in Qatar. Gas prices have doubled since the war began three weeks ago and are at the highest level since 2022. 'All of Europe is currently panicked by the gas price,' Kristersson said. Several countries, including Poland, Italy, Austria, and seven others, demand a review of the emissions trading system (ETS), with Italy advocating its complete abolition. Sweden defends ETS: 'Fundamentally, we see the ETS system as a success and an important tool for the future too.' A review of ETS is planned for summer 2026. Kristersson noted that many countries are severely affected by gas prices: 'Many countries are very gas-affected and are in a very bad position.' Sweden has become independent of oil and gas for electricity production.

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Initial reactions on X to PM Kristersson securing guarantees at the EU summit that Swedish bottleneck fees will fund only national grid expansion include neutral reports quoting the announcement. Prior discussions highlight strong opposition to EU's proposal for 25% of funds, with praise for Energy Minister Ebba Busch's firm resistance and warnings of EU overreach. Sentiments range from relief and nationalist support to government criticism.

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Ebba Busch criticizing EU commissioner on energy issues with power infrastructure visuals
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Ebba Busch criticizes EU commissioner over bottleneck revenues

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Energy Minister Ebba Busch (KD) launches a sharp attack on EU Energy Commissioner Dan Jørgensen in the dispute over Swedish bottleneck revenues. She recently paused the expansion of a power cable to Denmark.

The CEO of Företagarna, Magnus Demervall, criticizes Svenska kraftnät for holding 85 billion kronor in unused congestion revenues and compares the agency to Scrooge McDuck. He calls for more investments and lower grid fees to ease high electricity costs for households and businesses. Forecasts indicate February will be the most expensive month for electricity in modern times.

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The European Commission, led by Ursula von der Leyen, proposes reducing electricity taxes, reviewing the carbon emissions market, and avoiding premature nuclear plant closures to lower energy prices amid the Middle East war. These measures address surging oil prices due to the Strait of Hormuz closure, costing 6 billion euros since February 28. The EU meanwhile rejects military involvement in the conflict despite pressure from Donald Trump.

The Törnblom family outside Heby pays up to a thousand kronor in effect fees some months, a charge energy minister Ebba Busch (KD) demands be removed. Local utility Sala-Heby Energy has had a similar fee since 2004 and has no plans to change it. The company argues the fee helps customers keep costs low.

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In the continuing German fuel price crisis driven by Middle East tensions, economist Veronika Grimm warns against discounts to sustain high prices and curb demand, citing severe supply bottlenecks in the Strait of Hormuz. She critiques broad relief amid limited fiscal space.

Due to the Iran war's impact on energy prices, the EU Commission has urged member states to lower gas storage filling targets from 90 to 80 percent. EU Commissioner Dan Jørgensen wrote in a letter that this could reduce gas demand and ease price pressures. The EU is better prepared for crises than in 2022.

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Swedish economists and officials have criticized US President Donald Trump's escalation of global tariffs to 15% following the Supreme Court's invalidation of his prior levies, citing policy unseriousness and economic uncertainty for exporters. The government plans to assist companies via a hotline and push new trade deals.

 

 

 

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