Customers in many parts of Finland face sharp rises in electricity transfer fees this spring. Finland's largest electricity distribution company, Caruna, will raise prices in early March by an average of nearly one third. In Helsinki meanwhile transfer prices will go up by about nine percent. The transfer fee represents about one third of each customer's electric bill.
Caruna says it is hiking prices to foot the cost of improving its electricity network, such as installing underground cables to lower the risk of power cuts from storms.
"The company is investing 200 million euros in its networks over a period of several years," says Caruna CEO Ari Koponen.
Helen cites different reasons
Helsinki's municipality utility Helen says that it will increase rates in April.
"In early April transfer fees will rise by nine percent in Helsinki. This will result in an average overall increase in electric bills of six percent," says Jouni Lehtinen, customer management manager at Helen.
For an average Helsinki apartment-dweller, the cost will go up by about one euro a month, assuming annual consumption of 2,000 kilowatt hours. For an electric-heated detached house the rate will climb by some 4.50 euros a month, if consumption is 18,000 kilowatt hours a year, estimates Helen.
Helen gives a different reason for its rate hike than Caruna. The Helsinki firm says it is because the national electricity distribution firm Fingrid raised its grid fee significantly at the beginning of the year. It also cites changes in Energy Authority oversight procedures, which Helen says allows utilities to generate more profit for investors.
Helen is not planning any major investments this year as its distribution cables are already entirely underground, for instance.
Helen has 375,000 electricity customers while Caruna has 600,000 around Finland. Altogether about 10 electricity distribution firms have announced or implemented higher transfer prices, with Caruna planning the biggest hike.
Finland's second-largest distribution company, Elenia, says it faces pressure to raise transfer prices, but has not yet decided whether to do so. Elenia, which has 417,000 customers, last upped its transfer price four years ago.