Electricity - Glossary
Electricity transmission
The delivery of electricity from the power plant to the consumer via the grid. Handled by the local network company.
Electricity transmission means moving electrical energy through the grid from producer to consumer. The grid comprises the transmission network (Fingrid), regional networks and distribution networks. From the consumer's point of view the local distribution network company handles transmission, and it cannot be chosen.
The transmission charge consists of a basic fee (EUR/month) and an energy fee (cents/kWh). It is typically 3-7 cents/kWh plus a 5-15 EUR/month basic fee. Transmission accounts for about 30-40% of the total electricity bill.
Finland has around 80 distribution network companies. The largest are Caruna (about 700,000 customers) and Elenia (about 440,000 customers). Their pricing is supervised by the Energy Authority.
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Related concepts
Electricity transmission charge
The fee charged by the network company for transmitting electricity from the power plant to your home. The network company cannot be chosen.
Electricity tax
An excise tax levied by the state on electricity. In Finland the rate is 2.253 cents/kWh (tax class I, households).
Kilowatt-hour (kWh)
The unit of electrical energy. One kilowatt-hour equals one hour of use of a 1,000-watt appliance.
Frequently asked questions
Why can't I choose the network company?
Electricity transmission is a natural monopoly - each area has only one network company. Building parallel grids wouldn't make sense. The Energy Authority ensures that pricing is reasonable.
What does the transmission charge cover?
It covers grid maintenance, repairs, metering, customer service and network development. The transmission bill also includes the electricity tax.
Why have transmission prices gone up?
The grid is being weather-hardened by replacing overhead lines with underground cables. The law requires power outages to be no longer than 6 hours by 2036. The investment raises prices.