Electricity spot prices in Finland have remained exceptionally low throughout the summer.
As of Friday, the average untaxed price for August had fallen to 1.3 cents per kilowatt-hour (kWh). This information was revealed when the Nordic electricity exchange, Nordpool, published country-specific spot prices for the following day, alongside the average prices calculated from these hourly rates. Saturday marks the last day of August.
Assuming there are no surprises in the as-yet-unreleased inflation figures for August, the inflation-adjusted average price for the entire month is expected to be the lowest in Finland's history.
"The spot price of electricity has been cheaper than at any time this century when adjusted for purchasing power and inflation. So, the prices have been extremely low in Finland and across the Nordic region more broadly," said Jukka Leskelä, CEO of trade association Finnish Energy.
In July, the average untaxed price hit a record low of just 1.7 cents per kWh, making it the cheapest in Europe for the first time ever. Even when value-added tax (VAT) was included, the cost was only a couple of cents per kWh. To find a comparable price level, adjusted for inflation, one would have to look as far back as 2012.
Leskelä emphasised that these figures refer specifically to untaxed prices, noting that prices displayed on electricity companies' websites are typically inclusive of VAT.
Finland joined the Nordic electricity exchange in January 1998. In July of that year, the inflation-adjusted average price was as low as 1.4 cents per kWh, which had been the lowest monthly average until now.
The second-lowest inflation-adjusted average price occurred in August 1998, at approximately 1.5 cents per kilowatt-hour. This month's prices have now dipped even lower.
Cheapest European prices in Sweden and Norway
Despite the record-low average price, Finland did not retain its position as the cheapest electricity provider in Europe, as it had in July.
In August, electricity prices in some regions of Norway and Sweden were even lower than in Finland.
This is evident in a map provided by Energy-Charts, a website which tracks European prices. The average prices listed are untaxed and reported in euros per mWh.
The lowest-priced regions in Sweden and Norway also ranked as the cheapest in Europe, with an average price of around one cent per kilowatt-hour in August. Sweden is divided into four pricing areas, while Norway has five.
In August, Finland ranked as the third cheapest in Europe in terms of average electricity prices. Unlike Sweden and Norway though, Finland has only one pricing area, thanks to its robust domestic transmission connections, meaning that electricity spot prices remain consistent from Hanko in the south to Utsjoki in the north.
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