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Changes to Caruna Oy’s electricity distribution pricing after 1 July 2018 year

Changes to Caruna Oy’s electricity distribution pricing after 1 July 2018 year

Caruna Oy’s electricity distribution prices will increase in our network areas of Uusimaa, Häme, Southwest Finland, Satakunta, South Ostrobothnia, Ostrobothnia, North Ostrobothnia and Lapland as from 1 July 2018.

For individual customers, the effect of the price adjustment on the customer’s electricity distribution bill will depend on the type of housing and energy use. The average price increase will be 6.5 percent of the amount that makes up the distribution part of the electricity bill total. The electricity distribution bill also includes electricity tax, which makes up approximately half of the electricity distribution bill total.

For residents in multi-storey residential buildings (annual use 2,000 kWh), this would mean an increase of around 1.5 euros per month, and for residents in detached or terraced houses (annual use 5,000 kWh) around 3.5 euros per month. The distribution bill for a detached house with electric heating (annual use 18,000 kWh) will increase by some 7.5 euros per month. For the new prices, please go to Caruna Oy’s network service fee pricelist.

We will send information about the price change to Caruna Oy's customers personally. The mailing has begun on 24 April and the letters will arrive to customer earliest on Friday. Delivery times depend on Posti's transportation timetable.

We continue to improve the electricity network so that our customers can rely on electricity distribution in the future as well

The Electricity Market Act requires electricity distribution companies to improve their reliability of supply. In the coming years, we must be able to restore power to our customers quicker than before after power cuts caused by storms or heavy snow: interruptions cannot last more than six hours in urban areas and 36 hours in the countryside. Electricity distribution companies must meet this target by 2028. This requires companies to invest heavily, as underground cabling is expensive in sparsely populated areas where the distances are long.

Caruna seeks to secure uninterrupted electricity supply irrespective of whether our customers live in urban areas or the countryside.

Caruna’s electricity network measures approximately 85,000 kilometres, and roughly half of it runs through forests. In practice, we’re moving overhead lines underground or clearing wider corridors for them.

Caruna Group is made up of two separate companies: Caruna Oy and Caruna Espoo Oy. Caruna Oy is responsible for electricity distribution in the regions of Southwest Finland, Uusimaa, Satakunta, South Ostrobothnia, Ostrobothnia, North Ostrobothnia and Lapland. Caruna Espoo Oy operates in Espoo, Kauniainen, Kirkkonummi and Joensuu. Caruna Espoo Oy’s prices will remain unchanged in 2018. The company’s electricity distribution network runs in an urban environment and is already fairly well protected against extreme weather conditions.

Improving the standard compensation to customers by 20 percent

The Electricity Market Act requires electricity distribution companies to pay compensation to their customers if a power cut has lasted for longer than 12 hours. As from 1 July 2018, we will pay our customers an added compensation of 20 percent.

You can now access My pages any time you want to manage your electricity

The service allows you to manage your electricity any time you chose. You can track your electricity consumption, view and update your customer details and browse your bills. For My pages please visit www.caruna.fi/omatsivut.

On My pages you will find a link to Caruna’s energy monitoring service where you can already view the effect of the forthcoming price adjustment on your electricity distribution bill. The service will also allow you to compare electricity distribution products and check which option would be the most suitable for you considering your current consumption. You can change your electricity distribution product free of charge once a year.

 

Frequently asked questions and answers regarding the price adjustment: 

You increased the prices significantly last time, why are you increasing them again? 
It is very expensive to renew the electricity network and the process will take years. The improvement programme requires a great deal of funding, which means that we have no choice but to increase our electricity distribution fees.

Why does the company have the right to increase prices?
The increase is based on the need to finance an electricity network improvement programme, and on the amendment of the Electricity Market Act (reliability of supply legislation). An electricity distribution company must collect enough distribution fees to cover all its operations (such as network maintenance and a 24/7 fault reporting service).

How much do your customers pay for the network improvements?  
The Finnish electricity network was mainly built several decades ago and, after serving the users well, it is now nearing the end of its life cycle in many sections. We want to make sure that our customers get value for their money: a modern and reliable electricity network. In this way we are able to guarantee that there will be fewer power cuts than before, with quicker fixes. An electricity distribution company must collect enough distribution fees to cover all of its operations (such as network maintenance and a 24/7 fault reporting service).

Investment in the reliability of supply has mainly focused on overhead lines in the medium-voltage network located in forests and serving urban areas. During the next phase, we will deal with overhead lines running over open ground and low-voltage networks in residential areas. To track our network improvement projects, visit our website.

You have given information about this change by user type, but how will it affect me personally?
You can see the effect of the price adjustment on your electricity distribution bill when your open the Prices adjustment view of the energy monitoring service. Use the service to compare products and check which electricity distribution product would be the cheapest for you at your current consumption. If you want, you can change the product free of charge once a year. You can notify us easily by clicking a link in the energy monitoring service. Please visit the energy monitoring service by following this link

Distribution pricing should be reasonable, do you really consider this reasonable?
We understand that a price increase is never positive news. However, by increasing our prices we can continue to improve our service, in other words we can guarantee that there will be fewer power cuts and they will be fixed more quickly.  Society and our customers expect better reliability of supply, and Caruna seeks to meet these expectations. We are committed to improving the electricity network. 

In the end, the authorities monitor whether each company’s prices are reasonable considering the structure of its electricity network and other company-specific details, so customers don’t have to worry about it. To track our network improvement projects, visit our website.

How are the companies’ distribution prices determined?
Our pricing is based on the maintenance, development and repairs of the electricity network and on the cost of providing customer service. 
The network service price level is determined individually on the basis of each electricity network’s level of costs.

The electricity distribution price comprises a distribution fee based on consumption (cents/kWh) and a fixed basic fee (€/month). Power customers also pay power and reactive power fees. Finally, the Finnish government collects the electricity tax through electricity distribution invoicing.

The Energy Authority monitors the electricity distribution pricing in four-year regulatory periods to ensure it remains on a reasonable level. The distribution rates of different companies can be found in alphabetical order on the Energy Authority’s website.

Why does the electricity distribution price not increase on Caruna Espoo Oy’s network area?
The structure of the electricity network is different in Caruna Espoo Oy, which has a more urban network. It will not require the same level of investment that Caruna Oy’s network, which is mainly located in the countryside.

 

The news has been updated on 24 April, 2018 at 15:30 with information about customer information mailings.

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