Energy prices go up in Q3

Prices of energy went up in nearly all energy types in the third quarter, according to Statistics Finland.

Prices of only energy peat and forest chippings fell from one year ago. The growth in prices was partly due to the tightening of taxation on fossil fuels at the turn of the year.

The rise in the world market price of oil in the third quarter was also reflected in the prices of oil products imported to Finland.

This was also visible in the consumer prices of liquid fuels that rose clearly from the year before. The price of motor gasoline rose by eight per cent, that of diesel oil by 11 per cent and that of fuel oil by 18 per cent from last year's September.

The growth in the tax-free price of hard coal slowed down in the third quarter of the year. In September, the tax-free price of coal was five per cent higher than in the previous year. The tax-free price of natural gas continued its steady growth. The price of natural gas was 18 per cent higher in September than one year earlier. In Finland, the fuels for electricity production are tax-free while excise duty is paid on fuels used in heat production.

The taxation on coal and natural gas was tightened at the beginning of the year. The taxable price of coal was seven per cent higher in September than one year earlier. The corresponding rise in the price of natural gas considering the tax increase was 13 per cent. Of domestic fuels, the taxable price of milled peat declined by 2.5 per cent in the third quarter and the price of forest chippings fell by one per cent from the respective period of the previous year.

The customer prices of district heating were in July one per cent higher for detached houses than in last year's August. The corresponding price rise was two per cent for terraced houses and three per cent for blocks of flats.

The system price of the Nordic electricity exchange derived from the sell and buy bids on the exchange continued growing in the third quarter. In September, the average system price was 52 per cent and the average for the Finnish area price was 37 per cent higher than one year ago.

In September, the electricity prices for households rose on average by five per cent in all consumption categories compared to last year's September. For enterprise and corporate customers, the prices of electricity were two to five per cent higher than last year. Household customers’ electricity prices are based on the obligation to deliver prices published by the Energy Authority, while the prices of enterprise and corporate customers are based on Statistics Finland's price inquiry on electrical energy. The obligation to deliver price reacts slowly to changes in electricity prices on the Nordic electricity exchange.