Media Release 31 March 2017
The electricity network company Elenia increases its distribution tariffs by an average of 6% at the beginning of May. The impact of the price increase on the tax-exclusive price will be on average 9.4%. The price change is driven by investments in weatherproof network and the transmission system operator Fingrid´s increase in transmission tariffs.
“Elenia’s price development secures the weatherproofing of electricity distribution and the regular maintenance of the electricity network. In 2012–2017, our investments in a weatherproof electricity network are approximately EUR 600 million. This year, we will invest more than EUR 120 million and expect to replace 3000 km of overhead lines with underground cables,” Tapani Liuhala, CEO at Elenia Oy, is explaining the background for the pricing.
“The decades-old overhead lines must be replaced. Our solution is to move cables underground to respond to the needs of future society. The Electricity Market Act of 2013 also set more stringent requirements for security of supply, and we are proceeding as planned in fulfilling them,” Liuhala adds.
Elenia has a decade of experience in constructing a weatherproof electricity network. When the company decided to construct solely underground cables in 2009, its underground cabling rate was less than 20%. Now, it is nearly 40% and Elenia’s goal is to reach 70% by 2028. The company has nearly 70,000 kilometres of electricity networks.
Elenia’s electricity network refurbishment has brought well over 6,000 person-years of work to contractors and other partners so far. Elenia plans to continue investment well into the next decade and provide employment to energy sector professionals in Elenia’s network areas of Häme, Pirkanmaa, Central Finland, South Ostrobothnia and North Ostrobothnia.
Examples of the monthly average impact of the price increase on the tax-inclusive distribution price
|Housing type||Annual consumption||Increase|
|Flats and apartments||2,000 kWh||EUR 1.41 per month|
|Terraced and detachded properties||5,000 kWh||EUR 2.94 per month|
|Detached properties||18,000 kWh||EUR 5.90 per month|
Distribution prices include both value added tax and electricity tax.
“It is important for the renovation of the electricity network that supervision by the Energy Authority supports moderate price development and secures the continuity of investments,” notes Liuhala.
In accordance with the regulatory model, Elenia’s regulatory surplus from the previous regulatory period of 2012–2015 will be offset during 2016 and 2017.
“We estimate that our 2016 regulatory deficit is approximately EUR 48 million, and in 2017 it is estimated to be approximately EUR 40 million,” says Liuhala.
More information: Tapani Liuhala, CEO, Elenia Oy, tel. +358 400 33 11 30