Helsinki has lowest electricity prices in Europe

Helsinki is doing well in an international electricity price comparison. Both the sales and the distribution prices in the city are very competitive.

A study coordinated by VaasaETT monitors the electricity prices in European cities on a monthly basis. In the results dated at the beginning of November, the price of electricity in Helsinki is ranked at the lowest level. According to the study, the price paid by customers for one kilowatt-hour can vary by up to 152% depending on where they live.

The most favourably priced cities after Helsinki are Stockholm and Belgrad, while the most expensive cities are Berlin and Lisbon. According to the study, the average price in the European countries is 19.94 c/kWh, and the price of electricity in Helsinki is clearly lower at 11.15 c/kWh. The price index monitors electricity prices in 23 European countries.

In general terms, the results show that the market price of electricity accounts for about a half of the price paid by the customers while the other half consists of distribution prices, energy taxes and VAT.

The effect of price level differences between the countries has been eliminated in the electricity price comparison. In Helsinki, the distribution price has a significant impact on the favourable electricity prices. According to the study, the distribution price in Helsinki is the lowest among the European capitals.

– It is great that we ranked highest in this electricity price comparison between European capitals, although our goal does not focus on the price alone, but on overall affordability, says Jukka Niemi, Director of the Electricity Market business unit.

– We aim to offer our customers extra services, which provide greater benefits than the cost of producing them.  For example, hourly electricity metering has already made it possible to provide an energy consumption reporting system, in which customers can identify the amount of energy they use at an hourly level, set targets for their own efficient energy use and easily monitor the implementation of these targets.

The entire study is available to read at http://www.energypriceindex.com/wp-content/uploads/2014/12/HEPI_Press_Release_November-2014.pdf

Source: HEPI by Energie Control Austria, MEKH and VaasaETT

Published: 04.12.2014 09:59

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