Energy crisis | The interest of the taxpayer and Finland was forgotten in the emergency financing of electricity companies, criticizes the opposition – “At the same time, companies must be obliged to lower prices”

Opposition parties are worried about the consequences of the emergency financing package for energy companies promised by the government on Sunday.

Group leader of the coalition Kai Mykkänen reminds that already on Friday next week, the EU Council of Ministers will meet for an emergency meeting on energy issues.

Mykkänen sees a danger in the situation that Finland’s and Sweden’s concern about collateral in the electricity derivative market will not become the most important issue at the meeting, when the countries managed the risk situation by promising the companies loans or collateral guaranteed by their taxpayers, if necessary.

“Even in the EU, matters are often decided under pressure,” says Mykkänen.

According to him, Finland’s and Sweden’s collateral promises could alleviate the rush to change the collateral rules of the derivatives market at the EU level.

Read more: This is what was said about the ten billion euro emergency financing of electricity companies: “The state’s risks are comprehensively protected”

Instead, the pressure is even higher to solve the problem experienced by Germany in particular, i.e. how high the price of natural gas determines the price of electricity in Europe in general.

“It must not happen that Finland and Sweden offset their own problems with the help of taxpayers, and Germany’s problem is then solved at the EU level.”

Mute understand that Finland was in a hurry to stabilize the situation of the energy companies after Sweden had announced its own emergency package with very dramatic twists of words. In the end, keeping energy companies afloat is all about very fundamental security of supply.

In any area of ​​Finland, the electricity supply must not be jeopardized because some company would not be able to pay the collateral required in the derivatives market, which can be required with a very short warning period when future prices fluctuate.

“An acute problem has to be dealt with one way or another.”

Still, he states that the decision could have already started to be prepared in the spring, when the energy companies first raised the issue.

Another concern of the group leader of the coalition is also related to speed. In his opinion, the government must speed up the construction of renewable energy production, so that the emergency situation that led to emergency funding really remains temporary.

“Really extraordinary means should be used to speed up electricity investments, so that we get wind power with faster approval than has been achieved so far and also get small nuclear power projects and other electricity production started quickly, because otherwise this situation will continue more or less for several years.”

Basic Finns chairman Riikka Purra exceptionally answers HS’s questions by text message, because he was busy in a meeting on Sunday evening.

According to him, the provision of emergency financing gives an even greater reason that consumers should also get something out of the whole. According to him, today “in practice, the risks of the market are borne by the consumer”.

“However, at the same time, many companies are making huge profits,” he writes.

Purra would be in favor of regulating price formation and the market.

“The most important point regarding this loan guarantee package is that the companies must be obliged to lower prices at the same time. Such a condition is included in the contract.”

According to Purra, the Basic Finns support models in which the price of electricity would be formed according to the production costs and not as it is today, i.e. always according to the most expensive form of production required to meet the demand of each hour.

However, Purra shares the perception of the seriousness of the situation, and does not consider the government’s intervention to be pointless in itself.

“The need for financing from derivative transactions must be understood and the problem should be temporary. At the same time, however, it is necessary that the burden is distributed evenly,” he writes.

Helen’s power plant in Vuosaari produces electricity and heat from natural gas, which has become significantly more expensive since Russia invaded Ukraine. Picture: Juha-Pekka Laitinen / HS