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Published: 7 September 2016

The drop in energy prices tapered off in the second quarter

According to Statistics Finland's data, prices of energy products continued declining in the second quarter of 2016 compared with the corresponding quarter of the previous year. The drop in energy prices did not, however, continue as steep as in the first quarter of 2016. The price of electricity in the Nordic electricity exchange actually made a clear upturn compared to one year ago, which has not been witnessed in a long time.

Fuel Prices in Heat Production

Prices of oil products imported to Finland remained at a low level like the world market price of oil in the second quarter, which was also visible in the consumer prices of liquid fuels. In June, the price of motor gasoline was eight per cent lower and diesel oil ten per cent lower than one year earlier. Despite the tax increase at the beginning of the year, the price of light fuel oil was ten per cent lower in June than twelve months ago.

The tax of hard coal and natural gas used in heat production was raised at the beginning of 2016. In the second quarter, the price of hard coal was four per cent higher than one year previously. In turn, the price of natural gas declined by six per cent because the price of natural gas has traditionally followed the changes in the world market price of oil. As a result of the tax cut in March, the price of milled peat went down by ten per cent from one year back. Correspondingly, the price of forest chippings fell by one per cent. The price of wood pellets used by consumers was the same in May as one year earlier.

In the second quarter, the monthly average for the system price of the Nordic electricity exchange derived from the sell and buy bids on the exchange rose from one year back for the first time in nearly 2.5 years. In June, the average price was EUR 26.53 per MWh, which was 84 per cent higher than one year ago. Due to electricity transmission restrictions, the Finnish area price was one-third higher in June than the system price, that is, EUR 35.41, increasing by 65 per cent from one year ago.

The changes in electricity exchange prices typically have a delayed effect on end-user prices. The prices of electricity for households decreased in the second quarter by an average of one per cent year-on-year. This was also the case for the electricity prices of smaller enterprise and corporate customers, consuming less than 20 gigawatt hours per year. For larger enterprise and corporate customers, consuming more than 20 gigawatt hours per year, the prices were on average three per cent lower than twelve months earlier. The rise in electricity exchange prices was already visible in their June prices that increased by six per cent on average from one year ago.

Source: Statistics Finland, Energy prices

Inquiries: Ville Maljanen 029 551 2691, energia@stat.fi

Director in charge: Ville Vertanen

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Appendix tables

• Appendix table 1. Energy taxes, precautionary stock fees and oil pollution fees (7.9.2016)
• Appendix table 2. Energy prices in heat production in June 2016 (7.9.2016)
• Appendix table 3. Consumer prices of heating energy in June 2016 (7.9.2016)

Figures

• Appendix figure 1. Import prices of oil (7.9.2016)
• Appendix figure 2. Consumer prices of principal oil products (7.9.2016)
• Appendix figure 3. Fuel prices in heat production (7.9.2016)
• Appendix figure 4. Fuel prices in electricity production (7.9.2016)
• Appendix figure 5. Price of electricity by type of consumer (7.9.2016)
• Appendix figure 6. Average monthly spotprices at the Nord Pool Spot power exchange (7.9.2016)

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Updated 7.9.2016