SD: Sweden must fight the EU to stop supranational taxation

The enormous sums at stake with so-called congestion revenues in the electricity system, which arise when electricity prices differ between two price zones, are something the EU is eager to get its hands on, but the Tidö government says no. Now, Sweden must be prepared to take the fight to the EU Court of Justice, according to the Sweden Democrats.

Currently, there are about SEK 85 billion in Svenska kraftnät’s congestion revenue fund, intended to strengthen Sweden’s electricity infrastructure and crisis preparedness. However, the EU Commission would rather take 25 percent of this amount and redistribute it to other member states’ energy projects.

As Sweden is the EU country that collects the most congestion revenues, this would mean that Swedish taxpayers would be forced to bear a disproportionately large share of the financing.

In an opinion piece, SD duo Jimmie Åkesson and Charlie Weimers warn that this is yet another example of a dangerous trend where the EU seizes the Swedish people’s assets to fix other countries’ economies.

If Brussels is allowed to dictate how our local fees should be used, our national sovereignty will be further eroded. It is unreasonable that countries that have not invested in their own infrastructure should now be rewarded at the expense of Swedish consumers and businesses who are already struggling with high costs.

The government is negotiating with Brussels, and Prime Minister Ulf Kristersson (M) is said to have received a promise that member states will adopt a flexible approach to domestic congestion revenues. The Sweden Democrats support the government’s tough negotiating stance, but stress that we cannot solely rely on Brussels rewarding Sweden for years of loyal service.

Supranational taxation

There is also a clear trend of the EU advancing its positions and seeking new ways to introduce supranational taxation. This legal shadow play must be highlighted and fiercely resisted, the duo argue, and to stop this, they believe Sweden must be prepared to use all political and legal means.

The Sweden Democrats believe the government should, without delay, prepare to bring an action for annulment in the EU Court of Justice. According to the definition of the EU Court of Justice, a tax is a legal obligation to pay a certain amount to finance objectives of general interest. The legislative proposal under negotiation fulfills this definition. The congestion revenue is a disguised tax, and if approved, the decision would set a precedent with far-reaching consequences.

In conclusion, Åkesson and Weimers write that it is possible to have the congestion revenue annulled in the EU Court of Justice and emphasize that the struggle is ultimately about upholding the fundamental principle that the right to taxation must rest on democratic control.

Congestion revenues are incomes that arise when electricity prices differ between price zones because the grid’s transmission capacity is insufficient, causing Svenska kraftnät to automatically receive funds equal to the price difference multiplied by the electricity flow between the zones.

Congestion revenues have increased significantly in recent years as the price gap between northern and southern Sweden has grown, resulting in the fund now amounting to about SEK 85 billion, held in a special account intended to alleviate congestion in the electricity grid.

According to EU rules, this money may be used to strengthen transmission capacity, conduct countertrading, or in some cases lower grid fees. But since the revenue inflow has been much greater than the pace of investment, the fund has grown rapidly and become a subject of political debate both in Sweden and within the EU.