Helen Sähköverkko Oy will increase electricity distribution prices by an average of about 9 per cent as from 1 April 2016. In the previous years, distribution prices in Helsinki were reduced three times in a row.
The price increase is based on the rise in the grid fees and the change in the regulation model of the network operations. The Energy Authority regulates the network operations and their reasonable pricing. The permitted level of return on network operations is rising as from the beginning of 2016.
The previous change in distribution prices in Helsinki took place on 1 January 2015 when the prices fell by 9 per cent. Previously, prices had already been reduced in two consecutive years. As a result of these three price reductions, electricity distribution prices in Helsinki fell by a total of 20%. The distribution prices will increase to the 2014 level as a consequence of this latest rise in 2016.
The electricity distribution costs of a typical customer living in an apartment and with an annual consumption of 2,000 kWh will rise by about one euro per month. After the price change, the total electricity distribution bill of a typical customer living in an apartment will be about 15 euros a month including tax.
The electricity distribution costs of a typical customer with electric heating and with an annual consumption of 18,000 kWh will rise by about 4.5 euros per month. After the price change, the total electricity distribution bill of a typical customer with electric heating will be about 94 euros a month including tax.
The total of the distribution bill also includes electricity tax, which is charged on the distribution bill. The tax amounts to almost 42 euros per month for a customer with electric heating as in the above example.
Investing in electricity network development
Helen Sähköverkko Oy invests EUR 35–50 million in the development of the electricity network in the Helsinki region each year. This amount is just over a third of the distribution fees paid by the customers. Investments are needed in order to safeguard power distribution and upgrade the electricity network in an expanding city.
In the past few years, the average length of a power cut experienced by a Helsinki resident is 30 minutes every ten years. The security of electricity supply in Helsinki is among the best in the world.