According to Professor Peter Lund, one solution to the situation would be to update the operating mechanism of the electricity market.
Although the heaviest electricity prices have come down since last autumn, the price of electricity has come up again in the discussion.
On Wednesday, the Energy Agency outlined the affordability of electricity contracts with mandatory delivery.
According to the guidelines, a delivery obligation contract is reasonable at least when the price is below the average price of competing contracts.
It may be reasonable in other cases as well. The line is not black and white.
“In that situation, if we go above, then we look at more case-by-case consideration, which takes into account whether there are differences in, for example, business risk in competing markets,” says the head of the Energy Agency’s market group Antti Paananen for STT.
Lineage the effects on electricity prices remain to be seen, estimates the technical physics professor familiar with the energy market Peter Lund from Aalto University.
“It also depends on the industry’s own recommendations,” Lund tells STT.
According to Lund, the international energy organization IEA has recommended that governments prepare for the fact that next autumn and winter the price of energy could rise, but not as much as last winter.
The provisions of the Electricity Market Act on the reasonableness of pricing only apply to the retail sale of electricity subject to delivery. Delivery obligation means that, according to the law, each company leading the retail sale of electricity in the distribution network must offer consumers electricity at a reasonable price.
“For example, Helen has this obligation in Helsinki, other sellers do not have that obligation in this area,” says Paananen.
Before midsummer, also the Consumer Disputes Board your line reasonable price of electricity.
According to the Consumer Disputes Board, an increase in the price of an electricity contract valid for the time being is unreasonable if it causes an increase in payments of more than 15 percent and at least 150 euros per year.
A fixed-term electricity contract, on the other hand, can be unreasonable in price if, during its validity period, the price of similar fixed-term electricity contracts is on average 15 percent lower than in the concluded contract.
Electricity companies are not affected by the guidelines of the Consumer Disputes Board, but say that they follow the Energy Agency’s guidelines on electricity pricing.
CEO of Tampere Sähkölaitot Jussi Laitinen says by email that there is no decision yet regarding the policies of the Consumer Disputes Board. The company follows the guidelines of the Energy Agency, which regulates and directs its operations, on electricity pricing.
“The Energy Agency has ruled that the reasonableness of the price of electricity contracts with mandatory delivery is assessed on a market basis by comparing it to the average competitive retail market price of the corresponding type of contract. In addition, the Energy Agency considers that, in principle, the seller of the obligee has no obligation to sell electricity to its customers covered by the obligee at a loss.”
Helen’s manager responsible for sales and customer service Anu-Elina Hintsa is on the same lines.
“We are monitoring the situation, and we will not change our pricing, which is in line with the Energy Agency’s decision. Of course, it can be said that following the interpretation of the Consumer Disputes Board would lead to the fact that current fixed-term or indefinitely valid products could no longer be sold to customers, or their prices would be significantly higher than they are now. I don’t see that this would be in the consumer’s interest”, comments Hintsa by email.
HS told on Wednesday, that Fortum does not intend to follow the board’s policy. Account manager of consumer business Tuomas Yrttiaho told HS that disconnecting retail market pricing from the price mechanism of supply and demand is completely unsustainable from the seller’s point of view.
According to Professor Lund, the committee’s recommendation was in the right direction. However, he understands the problem with those companies that do not have their own electricity production.
“They are also at the mercy of the market,” says Lund.
Kuluttajaliitto considered in its statement on Thursday that consumers still do not have strong legal remedies in case of unreasonable price increases or unreasonable pricing, because the Consumer Disputes Board’s policy on rationalizing expensive fixed-term electricity contracts is only a recommendation.
Its decisions are therefore not legally binding.
If The Energy Agency considers that the price requested by the electricity seller for electricity with a delivery obligation has not been reasonable, the agency obliges the company to correct its pricing.
“Ultimately, we have the opportunity to oblige the company to return to customers the fees that it has illegally collected,” says Paananen.
However, if the wholesale prices rise as high as last winter, this will be reflected in the electricity price, which is considered reasonable.
“On the other hand, this year wholesale prices have come down from last winter’s peak, so that must also be reflected in these prices.”
If consumer prices deviate from wholesale prices without justification, the Energy Agency can consider that the market price itself is not reasonable and is no longer suitable as a reference point for the delivery obligation price.
According to Paananen, this has not happened until now.
Lundin according to sometimes cheaper electricity prices do not compensate for sometimes high prices, because the consumer does not get electricity in storage.
“I think this is also about justice. Last winter, the electricity companies made extraordinary profits in a crisis situation without actually having to do anything,” says Lund.
According to him, the solution to the situation would be to update the entire electricity market mechanism. In a crisis situation, the mechanism now works so that if there is no more to sell on the market, the price just goes up and up.
“Now we must not leave this situation here. Yes, last winter was quite catastrophic from the consumer’s point of view,” says Lund.
He also asks the energy industry for solutions to high prices.
“The energy industry seems to give the impression that this is the right situation, that there will be such price spikes and people will be in trouble.”
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