Changes to electricity distribution pricing after 1 July 2018

Changes to electricity distribution pricing after 1 July 2018

Caruna Oy’s electricity distribution prices will increase from the beginning of July. For individual customers, the effect of the price adjustment on the customer’s bill will depend on the type of housing and energy use. On average, the effect will be 6.5 percent of the total electricity distribution fee, including tax, shown on the bill. The electricity distribution bill also includes electricity tax, which Caruna accounts to the government in full. The tax makes up approximately half of the electricity distribution bill total. All customers will receive a letter concerning the price change within a few business days depending on the postal delivery schedule.

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.

Extreme weather conditions will cause fewer power cuts

The Electricity Market Act requires electricity distribution companies to improve their reliability of supply. In the coming years, the electricity supply must be resumed quicker than before after power cuts caused by storms or heavy snow loads. The deadline for network improvements is 2028. This requires companies to invest heavily, as underground cabling is very expensive in sparsely populated areas with long distances.

“Reliable electricity supply is vital for our society to function properly. We will fulfil our obligations and invest heavily in the construction of a weatherproof network to secure our customers’ uninterrupted electricity supply, irrespective of whether they live in urban areas or the countryside,” says Caruna’s CEO Tomi Yli-Kyyny.

Overhead lines moved underground, wider powerline corridors and better remote control

Caruna’s electricity network measures approximately 85,000 kilometres, and roughly half of it runs through forests. In practical terms, investing means either moving powerlines underground or clearing wider corridors for the remaining overhead lines. When the network’s remote control is improved, power cuts can be located more quickly, and the electricity supply reconnected by the control centre.

Caruna Group is made up of two separate companies: Caruna Oy and Caruna Espoo Oy. Caruna Oy is responsible for the distribution of electricity in the regions of Uusimaa, Häme, Southwest Finland, 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

Caruna is increasing the standard compensation its customers receive for prolonged power cuts. In addition to the standard statutory compensation, Caruna will pay an added compensation of 20 percent as from 1 July 2018.  The compensation will be paid automatically, and customers will not have to claim it.

Further information:

Tomi Yli-Kyyny, CEO, Caruna Oy
Contact Caruna’s Communications: tel. +358 20 520 5500

Caruna is the largest company dedicated to the distribution of electricity in Finland, responsible for the electricity distribution to 670,000 homes and businesses in the regions of Uusimaa, Häme, Southwest Finland, Satakunta, Ostrobothnia, South and North Ostrobothnia, Lapland and in the city of Joensuu. Caruna employs some 280 people, and has 2,000 people working in its network improvement projects across Finland.

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