The Swedish Competition Authority has launched an analysis of electricity network price developments amid growing concerns over sharp increases in fees charged to consumers in recent years. The initiative follows ongoing market monitoring and complaints from the public regarding escalating electricity network costs.
Electricity networks are widely regarded as natural monopolies, meaning that competition is structurally limited because duplicating infrastructure would be inefficient. As a result, the sector is subject to regulatory oversight. In Sweden, electricity network operators are governed by revenue frameworks, which establish a cap on the total revenue that companies are permitted to earn within a regulatory period.
Despite this regulatory structure, electricity network prices have increased significantly. The sector regulator, the Swedish Energy Markets Inspectorate, has previously indicated that the current regulatory framework may overcompensate network companies, raising questions about whether the system sufficiently protects consumers.
Against this backdrop, the Swedish Competition Authority has begun examining price developments from a competition policy perspective, focusing on how market structure and regulatory design may influence pricing outcomes.
David Nordström, a unit manager at the authority, emphasized that monitoring structural barriers to competition is central to the agency’s mandate.
“It is part of our mission to draw attention to the obstacles we see to effective competition in the market. Developments in the electricity grid market raise questions about pricing power and a lack of competition,” Nordström said.
The authority’s analysis will focus on several key aspects of the electricity grid market. These include the degree of market power held by network operators, the evolution of prices among different operators, and how these prices relate to the revenue frameworks currently in force. Particular attention will be paid to the current regulatory period, rather than the ongoing work by the Energy Markets Inspectorate on potential regulatory reforms scheduled to apply from 2028 onward.
As part of the investigation, the authority plans to engage with market participants, industry representatives, and the sector regulator during the spring of 2026 in order to better understand the dynamics behind the recent price increases.
Nordström indicated that the findings could lead to further action depending on the results of the analysis.
“Depending on what we find out in the spring, we may choose to summarize our observations to disseminate knowledge to relevant stakeholders. This could also result in us deepening our competition analysis in selected areas or making suggestions that can improve the functioning of the market,” he said.
The Competition Authority’s work is unfolding in parallel with a broader government initiative. The Energy Markets Inspectorate has been tasked with investigating issues related to the outcome of the regulation of electricity network fees, with its report due by 16 June 2026. The Competition Authority has confirmed that it will closely monitor the conclusions of this government assignment as part of its broader assessment of competition conditions in the electricity grid market.