Pågen's CEO: "A betrayal of the whole of southern Sweden"

The French love Pågen's crusts, baked in the factories in Malmö and Gothenburg. But the electricity prices in southern Sweden are causing it for the big bread company.

- We have lost competitiveness. We would have had different conditions if we had an energy situation that looked different, says Anders Carlsson Jerndal, CEO of Pågen.

Around 30 percent of the company's bread is exported, primarily to the neighboring Nordic countries and Germany. In France, Pågen has had to raise the prices of the popular crusts to cover the increased costs – and is now losing ground to a local producer.

But for Anders Carlsson Jerndal, it's not just about crusts. At the beginning of the week, the price of electricity in southern Sweden soared. Eon warns of a crisis winter. A villa owner may have to pay 73 percent more in electricity costs than last winter, according to the forecast.

Companies based in electricity price areas three and four have for years appealed to Swedish politicians: do something. Without being heard, believes Anders Carlsson Jerndal.

- It is a betrayal of the whole of southern Sweden, he says.

The problem, he believes, is incorrect pricing – where the price of electricity in southern Sweden is largely controlled by the prices in Germany.

- We have an incorrect pricing model. Today, our electricity is priced based on the prices in Germany, which are based on fossil fuels.

He doesn't want to discuss how the price of bread in Swedish stores is affected by the situation - but still makes it clear that in the end it always affects consumers.

- Over time, all companies must ensure that they are compensated for the costs they incur, he says.

The large differences between the electricity price areas in the country are unacceptable, believes Anders Carlsson Jerndal.

- There will be a distortion in the domestic market as well, where we are facing tougher conditions than up north. This is purely politically created.

He is not alone in raging. In a report, the South Swedish Chamber of Commerce warns that 200,000 jobs risk disappearing in electricity price areas three and four until 2030, as a consequence of power shortages combined with high and unpredictable electricity prices.

- It is a terrible situation, says Johan Eklund, CEO of the South Swedish Chamber of Commerce.

Not much seems to be happening on a political level to change the situation in southern Sweden, he believes.

- In the business world, people are angry. You are angry that time is passing. We will lose many jobs in the coming years, says Johan Eklund.

The report shows that a loss awaits both in competitiveness, job opportunities and investments in southern Sweden if nothing happens.

- We already have examples of companies that notify and do not invest because of the electricity prices in electricity price range four. Now this is also spreading to companies in electricity price range three. It is serious. We should urgently abolish the electricity price areas, says Johan Eklund.

At the Norwegian Confederation of Small Businesses, Sven Lindgren is on the same line.

- It is an injustice and it is irrational because it damages the economy. Now we see that companies are hindered because of a dysfunctional electricity market, says union secretary Sven Lindgren.