Helen Sähköverkko Oy is reducing electricity distribution prices by an average of five per cent as from 1 January 2014. The previous reduction in distribution prices took place in October 2012.
The reduction in distribution prices in Helsinki is enabled by lower capital costs as a result of the extremely low market interest rates. Distribution prices will be reduced despite the fact that the grid fees for nationwide electricity transmission have risen considerably: there has been an increase of some 70 per cent in the grid fees over a period of three years. This has resulted in a six per cent rise in distribution prices paid by Helen Sähköverkko Oy’s customers. The electricity distribution costs of a typical customer living in an apartment with an annual consumption of 2,000 kWh will fall by almost five euros a year. After the reduction, the electricity distribution costs of a typical customer living in an apartment will be about EUR 124 per year.
The electricity distribution costs of a typical customer with electric heating and an annual consumption of 18,000 kWh will fall by about EUR 35 per year. After the reduction, the electricity distribution costs of a typical customer with electric heating will be about EUR 624 per year.
Electricity network is constantly developed
Helen Sähköverkko Oy invests EUR 40–50 million per year in the development of the electricity network in the Helsinki region. This accounts for over a third of the distribution fees paid by its customers. Investment is required for the electricity distribution needs of the growing city and for upgrading the electricity network. It also ensures high security of electricity supply.
The electricity distribution network in Helsinki is almost completely cabled and is therefore weatherproof. However, cables are susceptible to damage caused by street excavation work. By investing in increasing the level of automation in the electricity network, it will be possible to reduce the number and duration of power cuts caused by excavation work.
The reasonableness of electricity distribution prices is supervised by the Energy Market Authority. Helen Sähköverkko Oy carries out electricity network operations in the Helsinki network area. The company is part of the Helsingin Energia Group, which is owned by the City of Helsinki.