countermeasure According to the Finnish Consumers’ Union, the recent rise in electricity prices calls for restoring consumer confidence in the energy system.
Juha Behring-PomuelThe general secretary of the Consumers Union told YLE on Saturday that the energy system should be fixed so that consumers do not face exorbitant electricity prices of more than 2 euros per kilowatt hour, as witnessed last Friday. I gave an overview.
This surge was the result of frigid weather and disruptions at many of Finland’s power plants.
“Many consumers are very upset that spot prices have become so high, since electricity is primarily produced at a much lower cost. Our country’s electricity production has also increased recently. “We are now at a level where we can theoretically become self-sufficient,” he told the public broadcaster.
Consumers’ Union does not believe that government subsidies should be taken for granted. Instead, it advocates a system that guarantees electricity at a fixed price to low-income households with electric heating in situations where electricity is unaffordable. Such systems have been implemented in Norway, for example.
This guarantee is activated when there is a risk that spot electricity prices will rise due to a prolonged power outage.
“The government should immediately start developing a new system,” Behring-Pomoel said.
Minister of Environment and Climate Change Kai Mikkanen (NCP) told YLE on Saturday that ensuring reliable power production is one of the solutions to power shortages due to low temperatures. He said the government would introduce incentives to encourage investment in non-volatile power generation, such as hydro and nuclear power, and large-scale energy storage facilities.
Governments may intervene to regulate electricity prices and consumption only in exceptional circumstances, such as prolonged disruption due to the shutdown of nuclear power plants or damage to cross-border transmission cables.
“Any plan that departs from determining prices in the market based on the balance between consumption and production creates the need to decide who has to reduce electricity consumption,” he reminded.
Consumers’ unions also called on power companies to offer individual flexible payments to customers during price increases. Severe payment difficulties are not in anyone’s best interest, Behring-Pomoel added.
He also acknowledged that consumers have a responsibility to ensure they understand their electricity contracts.
“There is a risk of facing prohibitively high spot electricity prices. But on the other hand, there is also the possibility of facing very low or even negative prices. It is the consumer’s responsibility to understand this. ” he emphasized.
Aleksi Teivainen – HT