The combination of exceptionally high electricity consumption and the record high price of electricity on the stock exchange raises many questions. We compiled the most important answers to this story.
ON FRIDAY exchange electricity will be more expensive than it has been throughout the 2020s.
At the same time, electricity consumption in Finland has been exceptionally high since Wednesday. According to Fingrid's estimate, the extended period of frost will keep electricity consumption at a high level throughout the rest of the week.
The combination of exceptionally high electricity consumption and the record high price of electricity on the stock exchange raises many questions. The most important answers to this article have been compiled.
How much does electricity cost?
Friday's average price of electricity on the stock market, including VAT, is 1.1 euros per kilowatt hour. At its most expensive, the price rises to as much as 2.35 euros per kilowatt hour between 19 and 20.
The lowest electricity price is on Friday morning. From 2 am to 6 am, electricity costs 18.6 cents per kilowatt hour, including VAT. For example, the price is still expensive compared to the fixed-term electricity contracts on offer.
Why is the price of electricity rising to a record high?
Director of Fingrid Tuomas Rauhala says that the power plants in Meri-Pori, Äänekoski and Helsinki's Vuosaari have had faults that require repair, due to which about 1,000 megawatts are depleted from the electricity grid.
“This is a significant production volume, which corresponds to one Olkiluoto unit,” says Rauhala.
Another reason for the price spike is the extended frost period.
How do the authorities advise to act?
Minister of Energy Kai Mykkänen (kok) urges to reduce electricity consumption.
“I would hope that everyone who has a natural opportunity to reduce or postpone electricity consumption from the early evening would also do so,” he said on Thursday.
The grid company Fingrid also appeals to citizens to limit electricity consumption.
“Fingrid reminds us of the importance of electricity consumption flexibility during the rest of the week and hopes that all electricity users will, as far as possible, participate in consumption flexibility by timing the use of electricity away from the evening and morning hours. For example, today [torstaina] it would be good to control the consumption of electricity only after 10 pm”.
According to Fingrid, on Thursday and during the rest of the week, it is important that all electricity users try to limit their use during the morning and evening peak hours.
How can you reduce your own electricity consumption?
It is clear that houses must be heated on Friday as well. CEO of the energy industry Jukka Leskelä advises to steer consumption away from the most expensive hours, when electricity demand is at its highest. Although electricity is expensive throughout the day, there are also large price differences between hours.
“During the most expensive hours, you can click the heat down even with a hand game,” he says.
“Many electrically heated houses also have fireplaces. If possible, it's worth switching the heating away from electricity.”
In single-family houses, the most effective energy-saving measure is to check the heating and ventilation regulations, advises the state sustainable development company Motiva Oy in a press release.
“Fireplaces and baking ovens that can be heated with ice packs should be put into efficient use, and use them to reduce the need for electric heating. In living spaces, the recommended temperature is +18–20 degrees. In other spaces, such as warehouses, the temperature can be lowered even lower in freezing weather, as long as it follows that water pipes or radiators do not freeze”, leading expert Päivi Suur-Uski Motivasta says in the release.
Päivi Suur-Uski also advises using traditional, even seemingly small, tricks to calculate the home's energy consumption: reducing the use of household appliances, e.g. postponing laundry and dishwashing to a later time and heating the electric sauna only after the frost has subsided.
The actions of all electricity users affect the formation of the price of electricity, including the price level of future fixed-price contracts, Motiva's press release reminds.
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