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What does the network service fee include?

The electricity network service fee (formerly distribution rate) consists of a distribution fee based on consumption (cents/kWh) and a fixed fee (EUR/month). The network service fee covers reliable distribution of electricity to customers. The local distribution network company is always responsible for the network— in Oulu, Kiiminki, and Yli-Ii, this is Oulun Energia Sähköverkko Oy.

Fixed fee

The fixed fee is independent of electricity use (EUR/month). It consists of the fixed costs of the electricity network service. The fixed fee includes many fully automated services:

  • Periodic inspection of the electricity network every 2–6 years and carrying out the necessary maintenance and clearing work
  • Replacement of an older electricity network and, if necessary, relocation of the electricity network to a better location
  • 24/7 electricity distribution monitoring and fault service
  • Immediate repair of electrical faults, regardless of time of day and weather conditions. The technicians on standby are ready to go and repair the damage immediately in the event of a fault
  • Versatile customer service: personal service in customer service and technical support, telephone service, and versatile online services
  • Energy saving and heating method advice

Network service fee

The network service fee (formerly distribution fee) is a charge related to the amount of electricity used (cents/kWh). The network service fee covers the distribution of electricity through cables from the electricity producer directly to the place of electricity use. You can influence how much of the network service fee you are charged by using energy wisely and saving energy. You can monitor your own electricity consumption on an hourly basis in your Energy Account.

Part of the price consists of taxes; read more about electricity taxation.

The Energy Authority controls the pricing of the network service

The electricity network service fees are based on the Electricity Market Act, which requires that the network operator maintains, uses, and develops its electricity network in accordance with the reasonable needs of its customers. Providing an electricity network is a natural monopoly, as the construction of competing electricity networks is not economically viable. The network authorisation grants a provider a geographical area that they are responsible for, in which the provider has the exclusive right to build a distribution network.

Where a customer is located within the network provider's area of responsibility cannot affect the distribution rates. Which electricity provider the customer purchases their electricity from also cannot affect the network service fee. The prices of electricity network services differ between different electricity network operators, but customers cannot shop around for different network operators. The Energy Authority monitors that the prices are fair.