Finnish Electricity Prices Jump 5x Amid Unseasonably Cold Weather And Worsening Energy Crisis

Finland has succumbed to the energy crisis as households and businesses early this week paid a mind-numbing €422 per MWh (including taxes), or about five times higher than a year ago, according to data from the Nord Pool electricity exchange.

The Northern European nation bordering Sweden, Norway, and Russia is energy-dependent, meaning it must import high volumes of fossil fuels, such as petroleum and natural gas. Domestic sources of power production include thermal, nuclear, and hydropower plants.

Energy experts told RT News that soaring natural gas prices in Central Europe attributed to skyrocketing power prices. Experts warned of very little relief for Finnish households and businesses who may experience heightened electricity costs until next summer. 

The massive rally in European gas prices is not diminishing anytime soon. On Tuesday, gas price at the Dutch TTF hub, the benchmark gas price for Europe, spiked to €100 per MWh. 

“According to our forecast, the price of electricity will remain high in winter but will start to decline in spring. It is likely that it will not be as high as it is today, but the overall level remains elevated,” Finnish electricity company Fingrid spokesman Mikko Heikkila said. 

“Finland is very dependent on imports. In winter, we need energy from neighboring countries but if the electricity market and domestic electricity production work normally, then next winter there will be enough electricity,” Heikkila said. 

Soaring power prices come as the country’s average temperature will remain well below a 30-year trend line through Dec. 15. 

The country’s heating degree days show power demand will continue to increase as temperatures remain well below average. 

Russia’s Gazprom PJSC, the main supplier of natural gas to Europe, warned Monday that prices would remain elevated in the coming months, offering very little relief for households who heat their homes with gas and power plants that produce energy with it. With the Northern Hemisphere winter just weeks away, it seems as Europe’s energy crisis will worsen. 

Soaring energy inflation and rising food prices are the makings of a ‘winter of discontent’ across Europe. EU politicians beware.