Response to interpellation 2024/25:125 on the missing electricity support for municipalities and regions

Energi- och näringsministern Ebba Busch (KD)

Mr. Speaker! Aida Birinxhiku has asked me if I intend to take any measures to prevent municipalities and regions from losing millions in electricity support. The interpellation is based on the fact that those entrepreneurs or legal entities that carry out primary production of agricultural products receive lower electricity support according to current regulations.

The background to the provision is that the electricity support for companies required an approval from the EU Commission following an application from Sweden. From the Commission's decision to approve the electricity support, it appears that a condition for the approval is that electricity support to a business operator or legal entity engaged in primary production of agricultural products may not exceed 2.5 million kronor.

Since this is an area regulated under EU law and is also a condition in the decision directed at Sweden, we have followed the EU regulation in this area. It was a prerequisite for being able to pay out the electricity support and not something we could disregard when we drafted the regulation for the payment of the electricity support.

It is very regrettable that some municipalities and regions have received a worse outcome from this EU regulation and received lower electricity support because they are judged to be carrying out primary production of agricultural products.

Some of the municipalities and regions that have been granted lower electricity support by Skatteverket have appealed the decisions to court. For some of these appeals, the proceedings are still ongoing in the courts. These legal processes are not something that I can or should comment on, but we will have to await the final decisions in these cases.

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Aida Birinxhiku (S)

Mr. Speaker! I thank the Minister for Energy and Industry for the answer.

It has now been almost exactly two years since the government's and the Sweden Democrats' promised electricity support was supposed to be in place. However, that did not happen for several municipalities and regions across the country. In my constituency, both Falkenberg Municipality and Region Halland missed out on millions in electricity support, because they are, according to the government, to be considered as agricultural producers.

It has also been almost exactly one year since my last interpellation debate with the Minister on the issue. At that time, I received the answer that the issue was prioritized and that the will existed, but despite that, nothing has happened.

Mr. Speaker! It will be a very strange debate if I have to stand here and argue that Region Halland is a region and Falkenbergs kommun is a municipality and not a farm. They are, however, regarded as such according to the government's electricity support ordinance, because we in Halland have a nature-based gymnasium that educates young people in the important green industries and because Falkenbergs kommun has an extremely small municipal greenhouse. It has obviously become completely wrong in the government's ordinance, and the government also bears the responsibility to rectify the whole thing.

Several referral bodies flagged that it could turn out this way due to EU regulations in the area and that the government therefore needed to take this into account in the ordinance by, for example, setting a limitation rule for how much the primary agricultural activity would apply. This is something the government has obviously missed doing, and now it affects municipalities and regions in a completely unreasonable way.

My interpellation is not about the courts' decisions in the individual case, but about how the government has chosen to design the electricity support ordinance that the courts have to apply.

Mr. Speaker! This is not the first time, and probably not the last, that things go wrong in the government's handling of the electricity support. The Minister knows this better than anyone else. Now we find ourselves in a situation where municipalities and regions are classified as agriculture and therefore lose millions in an already strained situation, despite the fact that the government was warned that this could happen. The Minister previously expressed that this was regrettable, but my question was about whether the government will do anything about this. So far, the Minister has not given any information regarding concrete measures. Therefore, I cannot draw any other conclusion than that the government lacks a plan.

I will give the Minister a final chance here in the interpellation debate to provide information on concrete measures. Will the government take its responsibility and act so that the municipalities and regions that have been affected eventually receive their promised electricity support? Or will the government break its election promise and let Falkenberg, Halland and other municipalities and regions take the hit?

(Applause)

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Åsa Eriksson (S)

Mr. Speaker! I thank Member Birinxhiku, who has once again initiated this incredibly important debate.

I want to start by recounting what Sala's municipal council member Amanda Lindblad said when she tried to explain to P1's listeners why Sala is not receiving electricity support like other municipalities. She said: It is strange that I have to explain to the government that I am the chairman of the municipal executive board - I do not lead a farm. It is not reasonable to cement a practice where municipalities can become something other than just municipalities in the government's eyes. And what does that mean in the long run? Can more municipalities risk being designated as something other than municipalities in other cases?

Mr. Speaker! For Sala, it is about 5.2 million kronor in missing electricity support. This corresponds to the cost of approximately eight teachers or nine nursing assistants, whom Salaborna can no longer get help from - all because Energy Minister Ebba Busch has approved a solution that means certain municipalities and regions cannot receive full electricity support because they are classified as agriculture.

The municipalities are already in a very difficult position because the government has failed to inflation-proof the state grants in its budget. They are losing approximately 6 billion kronor, of which several million are for Sala municipality. As the icing on the cake, an electricity subsidy of 5.2 million kronor is being omitted.

Mr. Speaker! The support is completely incorrectly designed. The government needs to ensure that what has been promised is also paid out. So far, we have not seen any tendencies that the government wants to find compensation possibilities for the affected municipalities. My question is therefore: Does Ebba Busch mean that Sala municipality and the other affected municipalities, which are now apparently farms and not municipalities, should apply for funds from the EU's agricultural support instead?

(Applause)

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Niklas Sigvardsson (S)

Mr. Speaker! I also want to begin by thanking Aida Birinxhiku for the opportunity to debate this issue in an interpellation debate.

As was said earlier, it has been almost a year since practically the same debate was held here in the chamber. The question is whether anything has happened at all.

I come from Jönköping County, which is one of the regions that lose millions of kronor because the region is considered to be farmers. It sounds strange. Residents back home in my county scratch their heads a bit and wonder if they understood what was said. Would the region be farmers? The answer is of course no.

Region Jönköpings län does, however, operate two very good nature-based schools: Tenhults naturbruksgymnasium and Stora Segerstad naturbrukscentrum. They provide upper secondary education and adult education within an area that is truly crying out for labor. They train farmers, foresters, and animal caretakers and also have a focus on garden maintenance. These are tasks that must be performed, and the region takes a major responsibility as the principal to carry out such education. But because Region Jönköpings län takes responsibility for the skills supply within these areas, one is punished by the fact that an electricity subsidy worth millions of kronor is withheld.

That electricity support was supposed to be implemented as quickly as possible for households, for companies, and for municipalities and regions. It was supposed to come as soon as the SD-led government had just received government power. But the households had to wait. The companies had to wait. Municipalities and regions had to wait. And some municipalities and regions are, therefore, still waiting.

At the same time, my region has hundreds of millions in deficit this year. The electricity subsidy would of course not solve all of this, but every krona could contribute to better healthcare in my home region. Therefore, it is regrettable that the Minister for Energy and Industry has still not taken any initiatives in the matter. It would be appropriate for municipalities and regions to receive a share of the money they are entitled to.

During the debate we had a year ago, the minister himself said that it is a matter of common sense that all municipalities and regions should be able to participate in this. Therefore, it is regrettable that no initiatives have been taken to resolve the situation during the past year.

Mr. Speaker! In the Minister's response, we could not hear anything about her having taken any initiatives during the year. Of course, one can refer to court proceedings and legal disputes, but it is actually possible to act beyond that without interfering in the proceedings. One could have worked on a parallel track if the legal proceedings had not gone as desired, that is, so that municipalities and regions received a share of the support. One could have worked in such a way that the affected municipalities and regions receive the money they are entitled to—money that could have gone to healthcare, elderly care, and school. But this does not seem to have happened.

The Minister may, in his next contribution, please answer Member Birinxhikus' questions. What initiatives have been taken and what initiatives will be taken so that regions and municipalities receive the money they are entitled to?

(Applause)

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Eva Lindh (S)

Mr. Speaker! I want to thank you for the opportunity to raise this issue again. I, too, am astonished. We have had a debate on this issue previously with Energy Minister Ebba Busch. When I was alerted to this, I, like very many others, was incredibly surprised. After that debate, I have had many conversations about this and received many emails and questions. What is happening? Will the government act? Is there anything that can be done? My answer has been: No, I have not seen that the government would have acted. Nor has any answer been given to those who have contacted the government with questions about this.

What is this about in my county? During the autumn of 2023, the government finally announced that municipalities and regions in electricity area 3 and 4 would be entitled to electricity support for the high electricity prices. It had been a long and drawn-out process, but the announcement meant that people became very happy in the region. They looked forward to being able to count on approximately 20 million in electricity support, an amount that would, of course, make a very big difference in the economic crisis that Region Östergötland is in.

What does it mean then for Region Östergötland that, instead of receiving 20 million, they receive 2.5 million? Well, they have now been forced to reduce the staff, so that 900 fewer people will work within healthcare in our region, Östergötland, next year compared to previous years. That is approximately 7 percent of the staff. That is a lot, and it is clear that it will have an impact.

Above all, it will affect all patients who have stood in long queues. We had a postponed healthcare crisis with healthcare needs after the pandemic. It affects the healthcare system and all those patients who are in need of help and relief. It affects the staff, who have to run even faster. I have spoken with very many who are strongly affected. The handling of the electricity support leads to an additional cut. I have heard the Christian Democrats say that one should stand up for good healthcare, but I believe that we Östgötar agree that good healthcare is not what we will be able to look forward to in the future. These funds, therefore, matter. They could at least have made a small difference given the needs that exist in the healthcare crisis we are facing.

Now, the situation is that Region Östergötland, like many others, operates two nature-based upper secondary schools and is therefore considered an agricultural producer. But that is not what Region Östergötland primarily engages in. It becomes difficult to understand this. It is difficult to understand that this can actually be the consequence of an electricity subsidy that was supposed to go to those regions and municipalities that have truly struggled in tough times with high costs for electricity.

I join the previous questioner and ask the Minister for Energy: Does the Minister intend to take any measures to ensure that Region Östergötland and other affected municipalities and regions receive their electricity support?

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Denis Begic (S)

Mr. Speaker! We became a few Social Democrats in this interpellation debate! It shows the importance of what is happening in our municipalities.

It is clear that the electricity support that was supposed to help the municipalities and regions manage the high costs has not achieved its purpose. That the municipality I come from, Örebro, received 2 million kronor instead of 20 million kronor is, of course, something that hits the municipality very hard. That a municipality whose main task is to provide education and welfare should lose support because it operates a nature-based gymnasium is a clear example of a lack of understanding for the municipality's reality and operations. Somewhere in Sweden, officials—economists or lawyers, I don't know—sit and judge that a municipality like Örebro is an agricultural operation because it has five cows that it uses for education. This is completely unreasonable.

The Minister refers to the fact that this follows EU rules on electricity support and that the Swedish Tax Agency and the courts interpret these rules. But, Mr. Speaker, it is the government's responsibility to ensure that the rules are applied fairly and that Swedish municipalities are not affected unreasonably. When municipalities are caught in a bind due to ill-considered regulations, the government and the Minister must act and not just refer to the fact that they are EU rules. We need concrete measures and strong leadership that ensures municipalities receive the support they were promised.

Other EU countries have in similar situations chosen to negotiate matters with the EU. There is therefore a clear possibility for that, even if perhaps not in the same issue. It can be argued that these are national issues where there are specific needs and certain consequences arise. But then there must be a will to argue for this in the EU.

My question will be roughly the same as previous questioners': Why have Sweden and its governments not tried to negotiate a solution so that the municipalities and regions that have been affected receive the support to which they are entitled? I would like to have an answer to that.

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Energi- och näringsministern Ebba Busch (KD)

Mr. Speaker! This is also a debate that could easily drift away, such that one pulls in just all the questions. I want to at least try to be as concrete as I can in this contribution.

Mr. Speaker! I thank you for the interpellation. I want to remember that even last time I had an interpellation debate with Aida Birinxhiku, I was quite straight with the fact that it is completely obvious that this was not the intention. It is completely obvious that these municipalities and regions are just municipalities and regions. I understand that Swedes sitting at home listening to this wonder and think: But this is just nonsense!

The short answer to the question of what is happening is that we have seen if it is possible to try to do something about it, but our assessment is that it is not possible and that it would be in conflict with the EU regulatory framework. Had we been able to do something about it, I would gladly have done so.

In addition, a court process is taking place regarding this. We do not know what the final assessment will be regarding the authority Skatteverket's application of the regulatory framework that the government has established based on the EU provision. It would be inappropriate if I were to involve myself in that process.

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Aida Birinxhiku (S)

Mr. Speaker! I thank the Minister for the answer.

First and foremost, I want to emphasize that this debate is not just about the electricity support. It is about the fact that the government and the Sverigedemokraterna are not delivering on perhaps their most important election promise, and that the government and the Sverigedemokraterna are also not supporting municipalities and regions in a difficult economic time. Just as my colleagues have pointed out, the country's municipalities and regions have not received the support required to be able to meet the worst economic crisis since the 90s. Instead, this government has, ever since it took office, moved forward with heavy cuts in schools, healthcare, and elderly care. This has hit Falkenberg, Halland, and other municipalities and regions around the country hard.

The latest budget contains no new general state grants at all, while almost half of the reform space goes to tax cuts that primarily benefit high-income earners.

Just like my colleague Niklas Sigvardsson, I will be clear that an electricity subsidy does not change that picture and the situation that the country's municipalities and regions find themselves in. In fact, a completely different policy is required that prioritizes welfare over tax cuts for high-income earners.

It is clear that it will be a double betrayal against municipalities and regions when they, in an already strained economic situation, lose millions in electricity support. It is millions that they need and which they have also counted on.

Mr. Speaker! The least one can demand is that Minister Ebba Busch at least initiates a dialogue with the relevant municipal and regional councilors to reach an agreement on how this can be resolved in the best possible way. It is something they have hoped for ever since they sent a joint letter to the Minister regarding this nearly a year ago, but nothing has happened.

Since the Minister has not initiated such a dialogue, I hope that she can provide some kind of statement in the interpellation debate, other than that it was not the government's intention and that the situation it has led to is regrettable.

My first question is whether the Minister will ensure that municipalities and regions receive their promised electricity support.

The Minister mentions that it is not possible with the current electricity support regulation and says that there is nothing to be done. I would then like to ask whether the government plans to compensate the municipalities and regions in some other way.

Is the government prepared to produce a supplementary electricity support regulation? Is the government prepared to provide new budget funds or to use existing budget funds? Is the Minister at least prepared to initiate a dialogue with the municipal and regional politicians who are affected on how it can be solved in the best possible way?

Mr. Speaker! What I want to know is whether the government at all has a plan for this moving forward. I hope that the Minister can answer that.

(Applause)

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Niklas Sigvardsson (S)

Mr. Speaker! Thank you, Minister, for the answer, even though it probably will not calm my regional board chairperson Rachel De Basso back home, where they are currently holding a regional council meeting. It is about the fact that they could be deprived of 17.5 million, which are the missing estimated revenues from the electricity support that they are losing out on.

The case of Region Jönköpings län has also been tested in court. They were denied the appeal they submitted to have it reviewed on the merits of whether the Swedish Tax Agency acted correctly according to the ordinance. Unfortunately, that review for Region Jönköpings län shows that it is likely how other processes will also proceed. It is a matter of the government, just as Member Birinxhiku pointed out here, having to try to find other solutions for the regions and municipalities.

All the examples we have from the members here and from Social Democrats across our country show that all these municipalities and regions carry out a very important activity, and that is why they have been punished. They are trying to contribute to the supply of skills in a very vulnerable sector.

If we go around and look at the green industries, it is about agriculture, forestry and the like. It will be crucial for the total defense and that we can have food production if the worst should happen.

Just these regions and municipalities are doing what the government wants them to do. Therefore, it is desirable that they are not punished for doing what is desirable for our municipalities and regions to do.

We Social Democrats and I personally will continue to follow the issue so that Region Jönköpings län will hopefully be able to receive the 17.5 million kronor that they are missing.

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Eva Lindh (S)

Mr. Speaker! I can agree with the Minister for Energy on one thing. It is obvious that something went wrong. We see the healthcare crisis very closely as residents of Östergötland. This is truly hitting healthcare very hard. I am prepared to fight for every krona to save the healthcare that can be saved.

The government has not allocated sufficient resources. This means large cuts in healthcare. Just as I mentioned earlier, it has major consequences for everyone who has anything to do with healthcare. It becomes an extra blow to the possibility of providing good and high-quality health and medical care in Region Östergötland.

I therefore ask the same question. When it becomes an obvious error, we politicians still have a reality to contend with and reflect upon. Are there any other possibilities to compensate for what did not turn out right? I would like to have an answer to that question.

The Minister for Energy replied that within the framework of the electricity support that was sought, no opportunities have been found. However, there could be other ways to compensate those municipalities and regions that did not receive the support they had counted on and which they would have received if the inaccuracy had not led to the reality they are now living in.

Is the Minister for Energy prepared to look at possibilities to compensate in order to save healthcare?

(Applause)

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Denis Begic (S)

Mr. Speaker! It is difficult to understand how we have ended up in this situation at all. My own home municipality, Örebro, which has costs for basic societal functions such as healthcare, elderly care, and the school, has been classified as agriculture. For me, it is very difficult to understand how we have ended up in that situation.

One needs to consider: What solutions do we have? The Minister refers to that EU rules state that municipalities should be classified as agriculture. What other things could the government do to facilitate things for the municipalities?

We have for many years in Örebro municipality discussed: Should we keep the nature-based vocational high school? Every time we say that it is important for Sweden that we keep it and that we have young people attending it. But when we get caught in a bind because of five cows, the question is: Should we accept it and continue to operate the activity, which is obviously classified as agriculture for a municipality, or not?

It is important that we receive a statement from the Minister. Can the municipalities and regions that are affected be compensated in some other way than through the EU's electricity support rules? Is there a possibility to do so? Is there a discussion within the government? Is there a will to do so? If there is a will, we are prepared to discuss: How can we help each other so that these municipalities are not affected?

I am worried about what other things will happen in the future because certain municipalities and regions are being classified as agricultural activity. Will there be any other things? There must be a will from the government.

(Applause)

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Energi- och näringsministern Ebba Busch (KD)

Mr. Speaker! I have been very empathetic towards the tough situation that many municipalities and regions find themselves in. I have tried to be as open and straightforward as possible about this. We have judged that it has not been possible. Court processes are still ongoing, and we need to wait and see where they land.

The great lesson here is: Do not believe that a crisis regulation from the EU will be sufficiently well-adapted to be able to compensate for the fact that Sweden has voluntarily and politically dismantled a robust electricity support!

We had a robust electricity support in the form of our own existing energy system. We would not have been as vulnerable to Putin's war of invasion and other countries' failed energy policies if we had had more fossil base power. It is not a political punching bag; it is how reality works.

With that said, it is a difficult situation for many municipalities and regions, and it shows how important it is that we take responsibility for our own situation and do not rely on emergency regulations from the EU that become far too blunt in their application in reality for Sweden.

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Aida Birinxhiku (S)

Mr. Speaker! Thanks to the Minister for this debate!

When we debated this question nearly a year ago, both the Minister and I hoped that it would be our last interpellation debate on the electricity support. But that assumed that the government would actually deliver on what it has promised, and this government has not done so.

We can continue to discuss what has been said and what has been done, but what my colleagues and I have tried to get an answer on in this debate is what the government plans to do moving forward. I have repeatedly asked whether the Minister intends to take any concrete measures – a supplementary regulation or budget funds – or at least meet with the municipal and regional politicians to discuss this. But it is obvious that the government lacks a plan to ensure that the municipalities and regions that have been affected receive their promised electricity support or that they can at least be compensated in some other way.

Mr. Speaker! I really want to emphasize that this debate is not only about the electricity support. It is about the fact that the government and the Sverigedemokraterna are not delivering on their most important election promise, and it is about the fact that the government and the Sverigedemokraterna are also not supporting municipalities and regions in an economically difficult time. Unfortunately, it is Falkenberg, Halland and other affected municipalities and regions that have to take the hit for it, and I can only regret that.

(Applause)

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Energi- och näringsministern Ebba Busch (KD)

Mr. Speaker! We deliver on everything. We promised that we would get Sweden in order so that one can trust Sweden regardless of where in the country one lives. We deliver on that.

We have now had a debate where many Social Democratic representatives have raised different types of problems in municipalities and regions. We have heard about how heavy it is for a region that thought it would receive 20 million in support and which instead receives, in rounded figures, 2.5 million in support. We are therefore talking about perhaps 17.5 million that did not materialize.

As a former local politician, I know that this can make a difference for a municipality or a region, and it has been worth discussing. I want to thank you for the interpellation. I have tried to give uncomfortable but straight answers so that the citizens will know what applies to our possibilities based on the EU regulation. But it is a bit like discussing a cold and the problems with the cold, which can be quite troublesome, when both an arm and a leg are broken.

When our four coalition parties took over Sweden, we had an inflation of 10 percent that ate away at the space for the Swedish people every month. We had electricity prices that were volatile and high. It was difficult to make investments and difficult to know what to budget for in families where every hundred kronor makes a difference. We had a diesel price that stood at 28 kronor, and the many families who are dependent on the car every day were on their knees as a result of the fact that from a political standpoint, prices had been driven up and they wanted extremely high prices on diesel. We had mortgage loans where one had received a tripled interest rate and a healthcare system with an inflation-driven cost shock that gave 69 billion - not millions - in increased costs for the regions over three years. We have had a crime rate with a tripling of mortality and gun violence over ten years and a sharply increased asylum migration.

We will get Sweden in order now. These are the big problems. We do not patch and repair; we build from the ground up.

The interpellations debate was hereby concluded.

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