Helen, the city of Helsinki's energy company, has reported a large profit in the third quarter of the year.
Helen's operating profit in the July–September period was 58 million euros, three times higher than during the same quarter of last year. At that time, Helen's operating profit was 19 million euros.
The group's turnover also increased significantly to 295 million euros, compared to 195 million in the corresponding period of last year.
In December, the price of electricity delivered by Helen will rise by 60 percent. The change applies to contracts that are valid until further notice.
Osmo Soininvaara, chair of Helen's board of directors, said that last year was very difficult for the company, but now the result has risen somewhat from the long-term average.
"However, compared to how big Helen's balance sheet is and how much capital is tied up in it, the result is still not unusually large. However, our own nuclear power plants and, for example, wind power are generating well at the moment," said Soininvaara, a Greens city councillor and former cabinet minister.
Last year, power from nuclear reactors accounted for 42 percent of the electricity sold by Helen, while renewables made up 45 percent.
Helen raised its electricity prices by 58 percent at the beginning of October. In December, prices will rise again by 60 percent for customers on open-ended contracts.
According to Soininvaara, the price hikes are due to the fact that winter futures prices are still very high. Procurement costs are especially now also increased by the high daily prices of electricity on the stock exchange, which are used to buy more electricity for hours of high demand.
"Helen has tried to remain at the same price level as other utilities," Soininvaara said.
Soininvaara acknowledged that many households find themselves in unreasonable difficulties due to the market situation.
"But that won't get any better by making company-by-company decisions that would place people in unequal position depending on where they live and which firm they have contracts with," he argued.
Soininvaara: Profits ploughed into investments
Soininvaara describes the situation in the electricity market as very challenging, with the industry in transition and changes essential.
"We're not using these profits to celebrate, but rather to build power plants and pay off the expenses of the Olkiluoto 3 [nuclear reactor]. We currently invest more than we generate in profit," he said.
Helen holds a roughly 10 percent ownership stake in TVO, which operates the Olkiluoto nuclear power plant. The plant's long-delayed third reactor is still not close to full commercial operations despite a plan to bring it online next month.
According to Soininvaara, some Helen managers may also receive bonuses, but these are only marginally tied to the company's results.
Soininvaara said that Helen's profits are also being used to limit the price of district heating. Helen raised district heating fees by 30 percent at the beginning of October.
"Fuel prices have risen, natural gas by more than tenfold, and you can't pass such big increases onto district heating prices. Most of our electricity output goes to other parts of the country, but the district heating goes to Helsinki, and that's why we have decided that the profit will be used to moderate the price of district heating," he explained.