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Sweden Threatens to Cut Power Connections to Denmark Over EU Energy Policy Dispute

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Key Points
  • Sweden is threatening to cut power connections to Denmark over EU energy policy reforms
  • The dispute centers on EU proposals to use 25% of bottleneck fees collected by member states
  • Sweden risks losing billions of kronor under the proposed system according to government estimates

Swedish Energy and Industry Minister Ebba Busch has issued a stark warning that Sweden could cut power connections to Denmark if the EU's Danish energy commissioner does not change position on proposed EU energy reforms. The dispute centers on the European Commission's proposed network package from December, which includes provisions for the EU to use 25% of so-called bottleneck fees collected by member states. These fees are generated from price differences between different electricity areas.

According to reports, Sweden risks losing billions of kronor under the proposed system, which has prompted the Swedish government to take a hardline stance ahead of Monday's energy minister meeting in Brussels. Minister Busch warned that "Sweden's red line is hard," indicating the country's willingness to take drastic measures including cutting power connections to Denmark if the EU proposal is not amended. The Swedish government has reportedly been put "on a war footing" ahead of the ministerial discussions in Brussels.

Sweden is open to taking all possible measures, including stopping new lines across borders and not extending permits for existing ones, which could particularly affect neighbor Denmark.

Ebba Busch, Sweden's Energy and Industry Minister

Sweden's task must be to look after Sweden first.

Ebba Busch, Sweden's Energy and Industry Minister

I understand some countries have special challenges and am willing to discuss, but emphasized the need for compromises and difficult decisions for long-term solutions.

Dan Jørgensen, EU energy commissioner

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