Energy Household electricity bills rose by more than 35 per cent last year – contract prices could rise by more than 100 per cent

Household The total price paid for electricity rose by more than a quarter last year due to a sharp rise in wholesale electricity prices, according to the Finnish Energy Agency’s electricity market review.

According to the review, the total decline in electricity for households rose by 25.1 per cent in 2021 and for electric heaters by 35.3 per cent.

Renewers of the electricity contract in particular will suffer from a sharp rise in wholesale electricity market prices towards the end of the year.

The offer prices of new contracts valid until further notice rose by 48.3 per cent for households and by as much as 108.5 per cent for electric heaters.

Prices for new two-year fixed-term contracts rose by 77.6 per cent for households and 84 per cent for electric heaters.

The prices of delivery obligations also rose sharply: by 59.7 per cent for households and 72.8 per cent for electric heaters.

Its instead, taxable transmission prices for electricity fell by an average of 0.7 per cent for a household user and 0.8 per cent for an electric heater.

Of the 77 network companies, thirteen raised and thirteen decreased their transfer prices during the year. Companies that lowered transfer prices reduced their prices by 2-17 percent.

The decline in transfer prices is expected to continue this year, as a change in transfer pricing control came into force at the beginning of this year. The reasonable return of distribution network companies will decrease by approximately EUR 290 million in 2022 as a result of the change in the control model.

The Energy Agency expects the change to be the first to lower transmission prices for customers in urban areas.

Power wholesale market prices rose sharply across Europe after the summer. The Finnish area price rose by 158 per cent last year.

Intra-day fluctuations in hourly rates continued to increase. The sharp rise in prices in the autumn is due in particular to the scarcity of water resources in the Nordic countries and the sharp rise in the price of natural gas and coal. The price of emission rights, which had risen steadily during the year, rose by a total of 146 per cent.

Electricity consumption, domestic production and net imports rose back to pre-pandemic levels last year.