Image: YLE
Storms in late December and early January knocked out electricity in large parts of Finland, leaving some people in the dark for over a week.
In the future, energy companies may have to pay up to 2,000 euros for power cuts following a proposed legislative change by the Ministry of Employment and the Economy. The power sector has criticised the plan.
Minister of Economic Affairs Jyri Häkämies met with representatives of power companies on Thursday informing them of the government’s new measures to improve the reliability of electricity distribution.
“A legislation change is in the works and I propose that the standard compensation should be increased significantly. Until now, the maximum was the annual electricity bill payable after five days [without power], 700 euros at most. Now I suggest increasing that threefold to 2,000 euros,” Häkämies told YLE.
Under current rules, maximum compensation is capped after five consecutive days of power cuts. But the new law would introduce two new thresholds, 8 and 12 days, after which the companies would be obliged to pay more damages for lost power.
Reliability as the goal
Officials hope that this measure will encourage power companies to speed up repair work when electricity cuts occur, in addition to devoting attention to network reliability.
Häkämies said that the legislation amendment would also include provisions on the power companies’ contingency plans and ability to provide customers with sufficient information.
Power sector association Finnish Energy Industries has spoken out against the proposal. It says that the planned measure will not do anything to improve the service’s reliability.
According to the association, a hike in compensation could lead to a slump in investments in the sector, since it would increase energy companies' risk.YLE
