Sweden to subsidise electricity bill amid high prices

Stockholm, Aug 18 The Swedish government has unveiled a plan to subsidise electricity bills for households and businesses to ease the pain of soaring energy costs.

Households and companies will both be compensated with at least 30 billion Swedish crowns ($2 billion), Prime Minister Magdalena Andersson announced at a press conference.

"The higher the electricity prices become, the larger the amount will be. This is a completely new way of thinking and the background is that the market was not created for such extreme situations as we have right now," Xinhua news agency quoted Andersson as saying on Wednesday.

On Tuesday, electricity prices in southern Sweden hit a record high of 7.68 crowns per kilowatt hour.

Analysts expect the electricity prices to soar even higher during the coming winter, making Wednesday's new relief package necessary.

A more detailed plan of the package will be presented in November.