Energy company E.On has said it will discontinue electricity production at its Heleneholm district heating plant in Malmö as of 1 August, if the government hikes carbon taxes, and has warned that there is likely to be a power shortage in southern Skåne.
Utility Göteborg Energi says it will have to reduce capacity at its Rya district heating plant unless the plans to raise the taxes are shelved, accusing the government of threatening the power supply.
Energy Minister Anders Ygeman has dismissed the criticism, arguing that the government must scrap the fossil fuel subsidy in order to tackle the green shift. The tax increases will be implemented, despite the warnings of power shortages in major cities, he claims.
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