Unfavourable Conditions Curb Production at OKG

Pressrelease Monday, July 20, 2015

During the past weekend, OKG was ordered to reduce the electricity production. This measure is a temporary adaptation to the reduced demand during the holiday season and a consequence of the energy policy means of control that disfavour the competitiveness of nuclear power based electricity production.

For the first time in almost fifteen years, OKG was during the past weekend ordered to reduce the production capacity. Unit Oskarshamn 1 (O1) as well as unit Oskarshamn 3 (O3) will periodically reduce their respective electricity deliveries to the grid and unit O3 has since on the night before Saturday 18 July reduced the daily output by circa 1.3 million kilowatt-hours.

– Our principal owner E.ON has by this decided to take the consequences of the fact that the power supply currently significantly exceeds the demand, says the Managing Director of OKG, Johan Svenningsson. The duration of the period of varying production volumes is thus determined by the situation on the market.

The reduction of nuclear power based electricity production takes place based on that the need for electricity is currently principally covered by facilities with a production based on water or wind. Due to the unique energy policy based taxation of nuclear power electricity production, OKG cannot compete with these types of energy.

– When the supply of water and wind is good, and the power rate is subsequently low, the distorted competition becomes particularly noticeable, states Johan Svenningsson. The nuclear power taxes amount to circa twenty per cent of the company's revenue which means that our fixed costs are proportionately high in comparison with for instance the politically subsidized wind power.

Furthermore, Johan Svenningsson is of the opinion that the competitive advantage of nuclear power in the form of being weather independent therefore does not even have any effect during other times of the year when the demand is higher and the supply of wind and water based production happens to be lower.

– I am the first to recognize the rules of the game within the market economy, Johan Svenningsson concludes, but I cannot wink at the fact that these rules constantly seem to be set aside within the energy industry. Almost twenty years have passed since the electricity market was deregulated, but due to continual energy policy actions we still have not attained the purpose of the deregulation – free competition on equal terms.

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Page updated Monday, August 10, 2015