Audit finds electricity-intensive tax breaks often go to the wrong firms

A recent audit by the Swedish National Audit Office reveals that the tax discount intended to support electricity-intensive exporters is being misapplied, with many companies that are not highly electricity-intensive receiving the benefit and some that should qualify being excluded. Christina Gellerbrant Hagberg, the chief auditor, says the scheme’s accuracy is insufficient and urges the government to revise its design to better meet its objectives.

Katarina Magnusson, who led the review, explains that firms with similar operations can be treated differently based on their industry label or production scale, and that the level of competition abroad varies among recipients. She adds that Skatteverket performs only limited checks on the large pool of applicants, reducing effective control. The audit also finds that precise measurement of electricity consumption across manufacturing processes is lacking, and that the programme’s capacity to promote climate adaptation and energy efficiency has not been fully explored, despite its potential.