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Wed, 03 Feb, 2016 12:04:00 AM FTimes – STT Report, Feb 3  Prime Minister Juha Sipilä. FilePhoto – Lehtikuva. Prime Minister Juha Sipilä on Tuesday said the government should by any means stop unregulated price hike of electricity transfer.
Referring to a recent announcement on plans to hike electricity transfer fees, the prime minister said the one-time increase is unjustifiably large, even if investment is the basis for the increase.
“Behind [the increase] is a complicated formula, and arguments may be found, but the justifications for the amount of the one-time increase are just strange,” Sipilä said in parliament.
He talked about the warning he had made in the past that these situations were likely to occur, if operations were transferred to private monopolies.
Minister of Employment and Economic Affairs Olli Rehn, meanwhile, has proposed a ceiling for the increases. Sipilä also considers ceilings one way to curb the price increases.
“The industry also warned of this in January,” he said.
Parliamentary Finance Committee Chairman Kaj Turunen recommended issuing a legal challenge against the unreasonable electricity price rises.
Electricity Distribution Company Carunan grid at Espoo. Photo – Lehtikuva. According to him, at this point, people can rely on the Consumer Protection Act. It is the first stage of security.
“Bills are on people’s desks now, so immediate action is needed. Clarifying the legislation has its own process, and it takes months in any case,” said Turunen.
Turunen believes that a long-term solution is to open electricity networks up to competitive tendering and to dismantle the monopolies.
“This case also applies significantly to businesses. Their transfer prices will also rise, but companies have additional burdens, such as power transmission fees, and there are significant increases here as well. This may even cause further unemployment in Finland,” Turunen added.
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