https://sputniknews.com/20230314/finns-forked-out-5bln-extra-in-power-costs-last-year-report-says-1108363240.html
Finns shelled out an extra €5bn in electricity costs last year, report says
Finns shelled out an extra €5bn in electricity costs last year, report says
According to the Finnish Energy Authority, the total price paid for electricity has more than doubled in 2022, with the average increase reaching 142%.
2023-03-14T07:26+0000
2023-03-14T07:26+0000
2023-03-14T07:26+0000
energy crisis in europe
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The current energy crisis cost Finnish households an additional €5 billion last year alone, according to a survey by the Nordic country’s national broadcaster Yle. Between July and December 2022 alone, electricity providers charged consumers around 25 cents per KwH on average. For comparison, the average price in 2020 was 3.5 cents per KwH, much lower than today. The drastic spike in electricity prices has generally been attributed to the conflict in Ukraine and the subsequent disruption of Russian oil and gas supplies due to However, since Finland’s electricity generation costs have remained higher or less the same, experts including Peter Lund, professor of engineering and physics at Aalto University, have called consumer energy bills “too high”. energy companies, such as Fortum and UPM, have benefited greatly from the electricity market system and its pricing practices, where the price of electricity is actually determined by the most expensive energy source. Rising prices thus allowed Fortum and UPM to double their profits during the energy crisis, while their production costs remained low. the prices have also pushed up Finnish electricity bills. The Finnish Energy Authority has revealed that the total cost of electricity has more than doubled in 2022, with the average increase reaching 142%. However, the effect was somewhat mitigated by a coordinated advertising campaign which reduced consumption by 10% compared to the previous year. Finland’s energy crisis, which largely mimics that of the eurozone, has been fueled by Helsinki’s “retaliation” against Russia and its energy on the special operation in Ukraine. From the outset, Helsinki was keen to refuse to comply with Moscow’s demands to pay for the gas in roubles, saying the hostilities in Ukraine, in which Finland staunchly supports the Kiev regime militarily and financially, made any cooperation with Russia impossible. As a result, many Finnish companies left the country, racking up losses. Meanwhile, as the Nordic nation tries to wean itself off Russian energy and sever remaining economic and public ties, Finns are burdened with soaring energy bills and face runaway challenges. inflation. Dark economic clouds hang over the country as Finland’s economy recently entered a technical recession, a development attributed to lower consumer and business expectations. In the meantime, the government has racked up additional losses while offering its citizens various forms of energy assistance, ranging from one-time payments to long-term subsidies. Prime Minister Sanna Marin admitted that the overall price could potentially exceed one billion euros.
https://sputniknews.com/20230307/finnish-economy-enters-technical-recession-amid-inflation-spike-1108135810.html
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energy crisis in finland, energy crisis in europe, energy prices, electricity prices, cost of living crisis
energy crisis in finland, energy crisis in europe, energy prices, electricity prices, cost of living crisis
The current energy crisis cost Finnish households an additional €5 billion last year alone, according to a survey by the Nordic country’s national television channel Yle.
Between July and December 2022 alone, electricity providers charged consumers around 25 cents per KwH on average. For comparison, the average price in 2020 was 3.5 cents per KwH, much lower than today.
The drastic spike in electricity prices has generally been attributed to the conflict in Ukraine and the subsequent disruption of Russian oil and gas supplies due to misguided EU sanctions.
However, since the costs of generating electricity in Finland have remained more or less the same, experts, including Peter Lund, professor of engineering physics at Aalto University, have called consumers’ energy bills “unjustifiably large.”
“The energy crisis is actually a paradise for energy producers,” Lund told Finnish media.
According to Lund, Finnish energy companies, such as Fortum and UPM, have benefited greatly from the electricity market system and its pricing practices, where the price of electricity is actually determined by the energy source. more expensive. The price increase thus enabled Fortum and UPM to double their profits during the energy crisis, while their production costs remained low.
Professor Lund argued that Finland found itself among the “losers” of the agreement on the European energy market, as energy prices in Central Europe have also driven up Finnish electricity bills.
The Finnish Energy Authority revealed that the total cost of electricity more than doubled in 2022, with the average increase reaching 142%. However, the effect was somewhat mitigated by a coordinated advertising campaign which reduced consumption by up to 10% compared to the previous year..
Finnish economy enters technical recession amid spike in inflation
Finland’s energy crisis, which largely mimics that of the eurozone, has been fueled by Helsinki’s “retaliation” against Russia and its energy over the special operation in Ukraine. From the outset, Helsinki was keen to refuse to comply with Moscow’s demands to pay for the gas in roubles, saying the hostilities in Ukraine, in which Finland staunchly supports the Kiev regime militarily and financially, made any cooperation with Russia impossible. As a result, many Finnish companies left the country, racking up losses.
Meanwhile, as the Nordic nation tries to wean itself off Russian energy and sever remaining economic and public ties, Finns are burdened with skyrocketing energy bills and runaway inflation. Dark economic clouds hang over the country as Finland’s economy recently entered a technical recession, a development attributed to lower consumer and business expectations. In the meantime, the government has racked up additional losses while providing its citizens various forms of energy relief, ranging from one-time payments to long-term grants. Prime Minister Sanna Marin admitted that the overall price could potentially exceed one billion euros.
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