Value-Added Services in the New Swedish Electricity Market

Författare

Lars J Nilsson

Summary, in English

The experience from electricity market reform in Sweden is reviewed and new approaches to promote improvements and investments in energy efficiency and renewable energy are discussed. On the first of January 1996 a new Swedish Electricity Act went into force, making it possible for consumers and retailers of electricity to choose between competing suppliers. Introducing competition fundamentally changes the prospects for utility driven DSM. The main motivation for utilities to continue DSM-activities in markets with competition is that there may be customer demand for such services and that DSM therefore could be used to retain customers and attract new ones. Among utilities that have actively worked to attract new customers only a few have concentrated on low-price bulk sales whereas others, although competing on price, in addition offer a variety of value-added services as part of the business strategy. Early experiences from Sweden show that there is a market for value-added services and that energy efficiency is one important component. Examples of energy efficiency products and services offered by Swedish utilities are presented here. Production specified electricity is another value-added service for which there is a beginning market. The early market experience from environmental labelling of electricity in Sweden is reviewed.

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