There is more upward pressure than usual on electricity prices next winter, experts say. That's due to low hydropower production in Sweden and Norway and the war in Iran, which is raising electricity prices across Europe.
"Water reserves have dropped in the Nordic countries. This affects the price of electricity, especially at times when we have little wind power production or the weather is particularly cold," explains Pekka Salomaa, director of the Finnish Energy industry group.
Military operations in the Persian Gulf region are also reducing the availability of natural gas, which still produces a significant portion of Central Europe's electricity. That has knock-on effects in the Nordic region as well, he says.
Meanwhile electricity transfer fees may rise in some parts of Finland due to a buyout of the electricity distribution company Caruna. The new owner, Spanish energy giant Iberdrola, may hike those fees, Pertti Järventausta, Tampere University professor of electrical engineering said on Yle's A-studio this week.
The price increase is most likely to affect customers in southwestern and northeastern Finland.
In late 2023, Finland's Energy Authority introduced a new regulatory model that allows electricity distribution companies to raise transfer fees.
Iberdrola announced on Tuesday that it plans to buy Caruna. The deal is worth around two billion euros, but still requires approval from EU authorities.
