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New energy pricing stirs controversy

Published onsdag 13 oktober 2010 kl 19.33
Will Sweden's new energy pricing balance out the country's supply or stick southern Swedes with higher bills?

Southern Sweden could be facing higher electricity prices than its northerly neighbors next year, when a new system will divide the nation into four different pricing zones.

News agency TT reports that the new system aims to balance out the nation's energy production by encouraging investors to build plants where there is not as much supply.

Voices from the industry warn that the system will favor the energy-rich north. Whereas in the south, where there is more demand, they worry that the new system will drive prices up.

Swedenergy, a non-profit industry organization, also expressed concern that the system will decrease competition within the sector, potentially giving customers fewer providers to choose from, while driving prices up.

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