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SK: Competition authority asks electricity firms to explain price hikes

The authority noted that one company's prices ballooned by nearly 500 percent, according to weekly magazine Suomen Kuvalehti.

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Finnish Competition and Consumer Authority can take cases to the Market Court in order to threaten companies with fines. Image: Alain Pitton/NurPhoto/Shutterstock/All Over Press
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The Finnish Competition and Consumer Authority (KKV) is investigating electricity companies' price increases and the reasonableness of the price levels, according to a report by weekly news magazine Suomen Kuvalehti.

The KKV, which has received several complaints from consumers about major price increases for electricity, is looking into three specific electricity companies. They include Vaasan Sähkö, Oomi and GNP Energy Finland, the magazine reported on Monday.

For example, the consumer authority noted that GNP Energy's prices ballooned by nearly 500 percent.

Among other questions, the authority is asking for the firms to explain how energy procurement costs changed before the price hikes.

"When we get the requested reports [from the companies] we will then evaluate possible follow-up actions," Jukka Kaakkola, leading expert at KKV, told Suomen Kuvalehti.

KKV has the authority to take cases to the Market Court in order to fine companies.

The magazine pointed out that several electricity firms have increased the price of their contracts by 30–40 cents/kWh, noting that some companies have even exceeded this.

Meanwhile, a separate but similar investigation by the Energy Authority is targeting companies including: Vaasan Sähkö, state majority-owned Fortum, Oomi, Väre, Keravan Energia, Vattenfall, Turku Energia, Helen, Lumme Energia and KSS Energia, according to Suomen Kuvalehti.

Edited at 18:41 to correct spelling of electricity firm names.