Paying for nothing — electricity transfer pricing angers consumers

People are feeling the pinch after many electricity distribution network companies raised their basic fees last year.

A man and woman posing on the steps to their cottage.
Heimo and Liisa Helenius don't spend time at their cottage during the cold season, but that doesn't prevent them from receiving electricity bills. Image: Juha Kokkala / Yle
  • Yle News

Electricity transmission fees have risen rapidly, to the point where the cost of transmission may exceed the cost of electricity usage itself.

It's the time of the year when cabin-goers prepare their cottages for autumn. As usual for the season, the Heleniuses are switching off their electricity as they won't be using the cabin in the winter months.

But turning off the mains does not prevent their electricity company from sending them a bill every month.

"It’s really crazy. Our electricity bill at the cottage is twice what is at home, even though our consumption is only half," cottage owner Heimo Helenius told Yle.

The discrepancy is due to the basic fee for electricity transmission. Electricity charges consist of two fees: one for consumption and the other for transmission.

Some companies charge over 40 euros as the basic monthly transmission fee, while others offer prices under five euros. This fee is charged regardless of whether any electricity is used or not.

At the Helenius' cottage in Ruovesi, Elenia charges a basic transmission fee of 22.80 euros per month, while at their home in Tampere, Tampereen Sähköverkko bills 4.80 euros. On top of the basic fee, there's an additional transmission fee for any electricity used.

Yle has studied the couple's bills.

"We can manage these bills. But it's still unreasonable to be charged for transmission when you're not using any electricity," Helenius told Yle.

A recent investigation by the Finnish Homeowners' Association found that nearly half of the country's 77 electricity distribution network companies, raised their basic fees last year.

The companies cite justifications such as Finland's long distances, financial deficits, infrastructure investments and underground cabling projects.

These explanations don't go over well with Helenius.

"Those wires have been up in the air for 30 years," he noted.

In Finland, customers can't source competing offers on their transmission deals because each region is served by just one electricity network company.

"Why are there so many electricity companies in Finland that can set their transmission prices at will? Electricity is a basic necessity, yet the current system puts citizens in a very unequal position," he argued.

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