Household electricity debts on the rise despite subsidy

Despite lower prices and support measures for households, there is no alleviation in the number of electricity debts. In the first four months of this year, the cases referred to the Enforcement Authority (Kronofogden) have increased alarmingly by nearly 50 percent.

Many are struggling with their electricity costs. Archive image.

Many are struggling with their electricity costs. Archive image.

Foto: Janerik Henriksson/TT

Ekonomi2023-05-23 09:52

Davor Vuleta, an analyst at the Enforcement Authority, highlights that the agency had hoped to see a decline in the number of cases. However, the reality paints a different picture.

Comparing January to April 2022, the number of physical cases has surged by 49 percent, and legal cases have risen by 65 percent. According to the Enforcement Authority's data, the total debt for both categories amounts to nearly 83 million kronor during this period.

– We had hoped to reach a peak and observe similar levels as the previous year, but unfortunately, that has not been the case. Instead, we continue to witness significant increases compared to last year, says Davor Vuleta in an interview with TT (Swedish News Agency).

The situation is challenging and worrisome, as delays in registration contribute to the issue. The Enforcement Authority often becomes the last resort for those impacted by the mounting debts.

Moreover, it is not just high electricity prices that contribute to the problem; rising interest rates and inflation also result in households having less disposable income. This prolonged recovery period makes it difficult for the situation to turn around swiftly.

The affected individuals represent a diverse mix, including some who have never previously encountered the Enforcement Authority. The high electricity prices have also taken a toll on various businesses, particularly in southern Sweden, where prices have been exceptionally high.

Although regional figures are not available, a random sample reveals a broad range of afffected sectors, including bakers, hair salons, and construction firms. The challenges faced by households and businesses in managing their electricity expenses are widespread and diverse.