Second part of Caruna Oy's price increase to take effect from 1 August 2023
Cost increases have in particular been driven by higher prices for network construction materials and higher interest rates.
"Although general cost inflation seems to be levelling off at the moment, the cost of network construction continues to rise and it is clear that construction contractors have not yet been able to pass on all of their own cost increases in electricity network construction prices. On the contrary, costs have risen and are projected to rise further, making it challenging to invest," says Noora Neilimo-Kontio, Caruna's CFO and deputy CEO.
The price increase applies to Caruna Oy. Caruna Espoo Oy’s prices will remain unchanged
On average, the increase in prices including tax will be 3.9 per cent, and 5 per cent in prices excluding tax. The price for a person living in an apartment building will rise by an average of €1.08 per month if the annual usage is 2,000 kWh. The price for a person living in a detached or row house will rise by an average of €2.45 per month if the annual usage is 5,000 kWh. The price for a person living in a detached house with electric heating will rise by an average of €4.63 per month if the annual usage is 18,000 kWh.
"Prices will rise by around €1–5 per month, depending on the type of housing. The first part of the price increase at Caruna Oy came into force at the beginning of January, and the second part will come into force at the beginning of August. The total average 12-month increase, implemented in two parts and in line with the price cap provisions of the Electricity Market Act, is around 5.6 per cent," says Noora Neilimo-Kontio.
The increase in costs affects Caruna Espoo similarly, but the surplus in accordance with the regulation model is higher than expected, and therefore the prices will remain unchanged.
The price of electricity distribution is affordable in Finland
Finland is among the cheapest countries in Europe for electricity distribution, especially when comparing the price of the Finnish network service by taking into consideration the length of network per customer.
“We have managed to build and develop our network very cost-effectively, even though distances are long and Finland is a sparsely populated country, and there are many lake and archipelago areas that are challenging for building. The reliability of electricity distribution in Finland is also at an excellent level relative to price when compared with other European countries,” says Neilimo-Kontio.
Electricity network companies play an essential role in guaranteeing energy security in Finland. Caruna is committed to investing and developing its network. Also when we move from fossil energy to renewable energy at a fast pace and when energy consumption increases rapidly.
Caruna takes care of the electricity network so that it has enough power to make use of renewable energy and to meet our customers' growing energy consumption in the future.