Helen launches new product with a price cap at the basic fee of 20c/kWh to encourage energy saving
There are currently two very serious challenges in the Finnish and European energy markets. The price of electricity is at an unusually high level and the sufficiency of electricity is stretched to the limit. For these reasons, Helen has decided to launch a new fixed-term product that helps customers in this extremely challenging situation. The new product encourages customers to save electricity by shifting their electricity usage to the lowest-priced hours of the day. In addition, the energy fee of basic consumption is capped at a significantly lower level than the recent market price.
“An exceptional situation calls for exceptional solutions. By launching the new product, we will provide our customers relief in their everyday lives by setting a price cap for electric energy that is considerably lower than the recent market prices. In addition, customers can reduce their electricity bills further by shifting their own electricity usage. We encourage people to use energy in a smart and efficient way in order to avoid a general shortage of electricity,” says Anu-Elina Hintsa, Helen’s Senior Vice President, Sales & Customer Service.
Helen will meet its customers halfway with this fixed-term product where the price of electricity is 20c/kWh plus a reduction or increase according to the timing of the customer’s own consumption. If the customer’s electricity consumption is relatively higher during the cheaper hours, they will benefit from this in the form of lower prices. However, if the customer uses electricity during the expensive hours, the price will be slightly higher. Typically, this flexibility can have an impact of +/- 5 c/kWh on the customer’s price.
The product is available only to Helen’s customers. This refers to Helen’s customers covered by the obligation to supply* (consumers and enterprises) and to Helen’s current consumer customers outside the distribution network who are Helen’s customers or have signed a contract before 19 December 2022. The product is purchased digitally on helen.fi and our customers are sent a personal message concerning the product. The product will be available to purchase as from 1 January 2023, and the contract may enter into force as from 16 January 2023 at the earliest. The product is a fixed-term product with a contract for six (6) months, and it can be purchased during the first quarter of the year, i.e. at the latest on 31 March 2023. When the product is purchased on 31 March 2023, it will be valid until 30 September 2023. The price of the product, 20c/kWh, will be valid as a fixed price throughout the six-month period. Helen will assess the continuation of the product at the end of the fixed term.
“We understand the concern of our customers regarding the high and unpredictable price of electricity, and we want to offer them stability in the energy crisis. Naturally, this is not a financially viable solution to Helen, and it will have a significant impact on the entire company’s profitability. However, we want to be a trendsetter in the sector, and at times like these we must be able to take decisions that are hard for the company,” says Anu-Elina Hintsa.
If the measures planned by the Finnish government to ease the high electricity prices compensate or are in conflict with the objective or implementation of this Helen’s product, there could potentially be no need for this proposed measure. Therefore, Helen reserves the right to amend the terms of the product.
* The obligation to supply refers to a metering point located within the distribution area of Helen Electricity Network with a maximum annual consumption of 100,000 kWh per year or with a maximum main fuse size of 3 x 63 A.