NextFin news, On Monday in Sweden, the government together with the Sweden Democrats revealed plans to significantly reduce the electricity tax by almost 10 öre per kilowatt-hour starting from the beginning of 2026. This measure aims to ease the financial burden on households and businesses amid ongoing high energy prices.
The announcement was made in a debate article published on Monday by key ministers including Ebba Busch (Christian Democrats), Energy and Business Minister; Elisabeth Svantesson (Moderate Party), Finance Minister; Oscar Sjöstedt (Sweden Democrats), Economic Policy Spokesperson; and Romina Pourmokhtari (Liberals), Climate and Environment Minister.
The government highlighted that although inflation has been defeated, many Swedish families continue to struggle with high electricity costs inherited from the previous administration. To address this, the electricity tax cut will reduce costs by about 20 percent, translating to an estimated annual saving of 1,000 kronor for a typical non-electric-heated household.
In addition to the tax cut, a new high-cost protection scheme will be introduced from November 2025 and remain in effect throughout 2026. This protection will activate if the average monthly electricity price in a given electricity area exceeds 1.5 kronor per kWh. A similar support mechanism will also be established for households heated by gas.
The government cited the closure of six nuclear reactors under the previous Social Democratic government as a factor contributing to price volatility in the electricity market. They emphasized ongoing efforts to support new nuclear power projects, including Vattenfall's plans for new reactors at Ringhals, marking the first nuclear construction in Sweden in 50 years.
Furthermore, the government has shortened permit processes to accelerate the expansion of fossil-free electricity production, aiming to ensure reliable and competitively priced electricity across Sweden, from Ystad to Kiruna.
These measures follow earlier initiatives such as halving the VAT on food to reduce grocery costs and various electricity subsidies to compensate households for high energy prices. The government also noted reductions in taxes on labor and pensions and temporary increases in housing benefits for those most affected.
The announcement was published on Monday morning on Aftonbladet's debate section and reflects the government's broader energy policy shift to stabilize electricity prices and support households and businesses amid ongoing economic challenges.
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