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Regional energy company extends price ceiling

Electricity will continue to cost residents of the west coast municipality of Kokkola less than 20 cents per kilowatt hour throughout the winter.

Suurjännitelinja Pirkanmaalla Lempäälän kohdalla.
Residents of Kokkola are able to buy electricity well below market rates. Image: Jani Aarnio / Yle
Yle News

The utility Kokkolan Energia, based in the west coast municipality of Kokkola, announced earlier in the autumn that it would set a temporary price ceiling on electricity supplied to local residents.

On Wednesday, the company said it will continue to sell customers power at discounted prices through the winter, at least until March.

Customers with a quarterly-adjusted contract with the company will pay a maximum of 16 cents per kilowatt hour for their electricity.

As of Wednesday, electricity is subject to value added tax (VAT) of 24 percent, bringing company billing to about 19 cents per kilowatt hour.

However, as of Thursday 1 December, VAT on electricity is being cut to 10 percent, and will stay at that level until April. This means that Kokkolan Energia customers with quarterly-adjusted contracts will be charged 17 and a half cents per kilowatt hour.

Without the price ceiling, the taxed price would be more than double, at 41 cents per kilowatt hour from the beginning of January.

The price cap does not apply to electricity transmission charges or district heating. Transmission fees recently increased in Kokkola, however, the company responsible for power distribution in the area, Kokkola Energiaverkot, has announced plans to ease transmission prices as well, as of the beginning of next year.

When initially announcing a price cap this autumn, Kokkolan Energia terminated all of its open-ended contracts with customers outside its home municipality. The ulitity is owned by the City of Kokkola.

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