This is actually an EU directive, to be implemented by every member state. Governments need to store at least 6 months of logs. Costs to be borne by individual ISP:s. So if any brits were looking to the mainland for escape from this idiocy, think again. By the way, the man responsible for the creation of this law is one Thomas Bodström, former Swedish Minister for Justice. He's moving to the USA. Please make sure he doesn't get to hold any public office...

Yes, that level of profit is automatically bad! A capitalist society is supposed to provide the cheapest possible alternative for the consumer, because if - and this is the case in Sweden - the current players are gouging their customers, the market can easily be won by a leaner and meaner newcomer until profits are down to as low as they can realistically go. If that's not happening and the incumbents are still turning good profits, you have a clear indication something's wrong: in the example of Sweden's power market you have an oligopoly strangling competition by raising the barriers to entry so they can squeeze more out of consumers. Nothing to do with "realistic" pricing there, just good old-fashioned collusion.