The Finnish Government has introduced a legislative proposal to establish a framework for regulating retail electricity prices in the event of a price crisis. The proposal is part of a package of regulatory measures concerning the European Union’s electricity market model.
What happened
If the Council of the European Union declares an electricity price crisis, Finland may introduce measures to regulate prices for households. The Government would decide on the introduction and duration of price regulation, within the limits of the appropriation allocated by Parliament.
According to Minister of Climate and the Environment Sari Multala, the goal is to ensure that effective measures can be introduced quickly to moderate electricity prices for households during a price crisis. The price regulation would be flexible, applying to a share of subsidized consumption, and market-based prices would apply to the remaining share of consumption.
The proposed regulation is expected to enter into force in spring 2027. The Government believes that the electricity market should primarily operate on market terms but wants to be prepared for exceptional circumstances, such as global events that drive up energy prices.
