According to the CEO of the electricity company Väree, the need to produce and import expensive electricity will decrease when electricity consumers reduce their consumption.
Power the current market price is not very attractive to spend, but it is also difficult to live without it. In this situation, the best way to protect yourself from high prices is to save electricity and avoid consumption peaks, advises the electricity company Väre.
“Saving electricity, especially at the time of peak consumption, i.e. during the morning and afternoon hours of weekdays, is topical and important to start right away”, CEO of Väree Juha Keski-Karhu says in the press release published by the company.
Central Bear according to, it is particularly important to regulate your own electricity consumption if the electricity contract contains elements related to wholesale price fluctuations.
This applies especially to buyers of exchange electricity, but also to those who have a fixed-price electricity contract. Namely, price spikes in exchange electricity affect the availability and price level of fixed-term contracts
“The more often and higher price spikes occur, the more expensive the futures used for electricity price protection are. The more expensive the futures are, the more difficult it is for electricity sellers to offer fixed-price contracts and the more expensive they are,” explains Keski-Karhu.
In the end, everyone benefits from reducing electricity use during peak hours.
“When electricity consumers reduce their consumption, electricity sellers reduce their purchases, and the need to produce and import expensive electricity decreases.”
Market price electricity cost almost 93 cents per kilowatt hour on Tuesday evening at 20:00. The price is really high. In this decade, electricity has cost only 10 times more than on Tuesday evening in a single hour. At its peak on Tuesday morning, December 7, 2021, electricity cost more than 1.2 euros per kilowatt hour.
On Tuesday, the taxable exchange price of electricity is about 61 cents per kilowatt hour. According to the electricity exchange Nordpool, the average daily price of electricity has never been this high in Finland in the 2020s.
Electricity is also expensive on Wednesday, as the taxed price rises to around 52 cents per kilowatt hour on average. Electricity is most expensive during the hour starting at 11 a.m., when it costs more than 71 cents per kilowatt hour including taxes.
The current prices are really high compared to the time of year, because traditionally, exchange electricity is cheap in the summer. According to Fingrid, electricity has cost an average of just under 40 cents per kilowatt hour over the past seven days.
Read more: Electricity is record expensive in Finland on Tuesday – the price is close to a euro per kilowatt hour
In his announcement, Väre emphasizes that Finns should be prepared for wholesale electricity that costs up to several thousand euros per megawatt hour. For example, in the Baltic countries, the tax-free wholesale price of electricity rose to 4,000 euros per megawatt hour a week ago.
Such a situation can arise in Finland if the total consumption of electricity increases despite the level of the wholesale price and more than the increase in supply.
“That’s why it’s important that electricity consumption is reduced already, and not until after the wholesale prices rise again to new record highs,” says Keski-Karhu.
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