The deal agreed between the Consumer Ombudsman and the electricity grid operator Caruna helped put to bed a furore that erupted over the company’s plan to jack up electricity transfer prices for consumers this year.
The agreement also averted a class action lawsuit that Caruna might have faced if it hadn’t backed down from the rate hikes.
Speaking at a press conference Friday morning, Economy Minister Olli Rehn said that the agreement showed that regulation and oversight are needed wherever monopolies operate.
"When ownership is spread out around the world, officials have to be precise and alert in their actions," Rehn said.
The minister added that the Caruna case showed that ownership matters.
"Where is the decision making power when we speak about the functioning of society and Finland’s self-sufficiency? These are vital questions," Rehn remarked.
He stressed that there is good reason to maintain Finnish ownership of the transmission grid.
New legislation to limit rate hikes
On Thursday the Consumer Ombudsman agreed that Caruna will raise prices on incrementally by reducing basic electricity distribution fees by a quarter until the end of February 2017. The firm also promised not to raise prices further before 2018.
Competition authorities estimated that as a result, the annual increase in consumers’ electricity transfer prices would remain less than 15 percent of the total taxable amount of the transfer fee.
Rehn described the deal as "fair and balanced". He disclosed that ministry officials are currently drafting reforms to existing energy market laws to regulate the size and frequency of future rate increases. He said that the aim was to include consumer protection regulations in energy market legislation.
"It would be in the interest of all parties to clarify the rules of the game and to significantly reduce consumer disputes," Rehn added.