STOCKHOLM, Dec. 19, 2025 —
Measures are needed to improve competition and strengthen customer protection in Sweden’s district heating market, which functions largely as a natural monopoly, the Swedish Competition Authority said on Friday.
The authority noted that high infrastructure costs typically leave consumers with only one local supplier, limiting real choice and giving district heating companies significant market power. Complaints to the authority have mainly concerned sharp price increases in recent years, which have exceeded historical norms.
While some of the increases reflect higher fuel costs, the authority said weak competition reduces incentives to keep prices low. It welcomed proposals from the Energy Market Inspectorate, which on Dec. 10 recommended a range of measures and warned that economic regulation may be necessary if market conditions do not improve.
