Report lists electricity production control mechanisms

Tuesday 17 May 2016

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Nuclear capacity tax, investment support and reduced net connection fee. Electricity Crossroads has compiled a list of the taxes and subsidies that affect electricity production.

“The report describes today’s economic control mechanisms aimed at electricity production. Given the extensive and complicated flora of taxes and subsidies, it is very important to get a picture of what it actually looks like,” says Runar Brännlund, Chairman of Electricity Crossroads’ work group for Public Finances and Markets.

Over the past year the nuclear capacity tax has been front and centre in the energy debate. A nuclear power tax was introduced back in the 1980s, but the capacity tax in its current form has existed since 2000. The capacity tax is not based on the actual amount of electricity produced, but on production capacity. The total tax effect on nuclear power went up by 168 percent between 2005 and 2015. That means a cost for nuclear power producers today of around 8 öre per kWh of electricity.

You can read about this and much more in the report Skatter och subventioner vid elproduktion (Taxes and subsidies in electricity production - Swedish version). The report, authored by Niclas Damsgaard and Erica Edfeldt, describes the taxes, fees and subsidies that affect electricity production. A number of instructive graphs also illustrate the effects of control mechanisms on various types of energy. The report has provided important input for the project report from the Public Finances and Market work group which was presented at a seminar on 19 May. (Swedish)