Caruna to raise electricity distribution prices due to cost increases
"At present, a significant and unforeseen rise in costs is affecting our investment capability, forcing us to reassess the pricing situation of both our distribution companies. The construction of the electricity network is more than 10 per cent more expensive for us this year than last year, and the prices of raw materials and fuels in particular have risen sharply. The price of loss of energy that we buy from the market has risen by 52 per cent this year, and it is expected to double next year," says Noora Neilimo-Kontio, Caruna's CFO and Deputy CEO.
Electricity network companies play an essential role in guaranteeing energy security in Finland.
"We look after the electricity network so that there is enough power to satisfy the increasing energy consumption of our customers and the use of renewable energy. The energy transition has stepped up a gear since Russia invaded Ukraine, requiring the electricity network to develop more rapidly," says Neilimo-Kontio.
Despite the rise in costs, Caruna aims to invest more than EUR 120 million annually in the energy security of its customers and the achievement of Finland's carbon neutrality targets.
Prices will increase for customers of both Caruna distribution companies. The post-tax prices for Caruna Oy’s customers will increase by an average of approximately 3.9 per cent. The prices were last raised three years ago by an average of 3,9 per cent.
The post-tax prices for Caruna Espoo Oy's customers (Espoo, Kauniainen, Kirkkonummi and the centre of Joensuu) will rise by an average of approximately 2.9 per cent. The prices were last raised five years ago by seven (7) per cent, and last year, Caruna Espoo reduced its prices by an average of 2.5 per cent.
The price for a person living in an apartment building will rise by an average of EUR 0.47 per month for customers of Caruna Espoo Oy and EUR 1.08 per month for customers of Caruna Oy, assuming an annual consumption of 2,000 kWh. The price for a person living in a detached house with electric heating will rise by an average of EUR 1.94 per month for customers of Caruna Espoo Oy and EUR 4.63 per month for customers of Caruna Oy, assuming an annual consumption of 18,000 kWh.
Due to inflation and cost increases, Caruna expects it to be necessary to raise the prices once more by about the same amount in the second half of 2023.
“We understand customers' concerns about winter energy costs, which is why we have split the increase into two parts. The need for the latter increase will be reviewed in the first half of 2023,“ says Neilimo-Kontio.
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