Our Work for Sustainable Profitability

We are continuously working to streamline operations and invest in the electricity grids. The need for investment is enormous over the next 25 years. This is partly because the Swedish electricity grid is starting to reach its maximum lifespan, and partly because we are in the middle of an electrification wave with rapid technological development and a transition of society to fossil-free electricity. The electricity grids we are now building must be dimensioned to function in the long term, and this places high demands on the long-term from both us and our owners. At the same time, our operations are regulated, and the regulatory periods extend over four years at a time.

Drivers of investment needs

There is a rapid and extensive electrification of society. Forecasts indicate that investments equivalent to SEK 945 billion will be needed in the Swedish electricity grids by 2045. At the same time, the need for electricity is expected to more than double. The climate transition is a strong driving force behind this, and the transport sector and industry, among others, are increasingly demanding electricity.

In addition, the energy system will need to be adapted for more variable electricity production. This means that the electricity grid must be built for flexibility and have the resources for storing electricity.

Technological advances in solar panels, for example, have made it possible for more people to produce electricity for their own use and for sale at a reasonable cost. We are thus moving towards a few large electricity producers to a number of small ones. This also places new demands on the electricity grids.

Our financing does not affect customers' prices

Ellevio's business area Electricity distribution is operated within Ellevio AB and is a monopoly business that is subject to state supervision and regulation through the Swedish Energy Markets Inspectorate (Ei). The revenues of the business are determined by the Energy Markets Inspectorate and the regulation is intended to ensure that the electricity networks maintain good quality and long-term security of supply.

The electricity network companies receive compensation for reasonable costs for running operations and a reasonable return for investments in and development of the electricity networks. The permitted revenue, i.e. how much we are allowed to charge our customers, is determined based on a regulatory framework that is exactly the same for all Swedish electricity network companies.

Who owns a business (municipality or private or other) or how the business is financed has no impact on the permitted revenue, no electricity network company can charge its customers more than what the revenue regulation allows. This means that financing or interest rates have no impact on customers' prices.