Reimbursement for electricity costs and other forms of central government assistance

You are entitled to the reimbursement if the VAT-inclusive electricity price in your electricity contract exceeds 10 cents per kilowatt-hour or if you had an electricity contract based on spot prices (so-called market price) in November and December 2022 and/or January 2023.

An electricity bill consists of the sales price of electricity, the distribution rate and taxes. The reimbursement for electricity costs is 50% of the VAT-inclusive price of your electricity bill. The reimbursement is not granted to the distribution rate or electricity tax. The reimbursement may not exceed EUR 700 per month.

The amount of the reimbursement is calculated based on the part of your electricity bill that exceeds the threshold of EUR 90/month. To qualify for the reimbursement, your electricity bill must exceed EUR 90 in the given month. No reimbursement is paid if the amount of the reimbursement for the month is less than five euros.

The reimbursement is paid in two instalments. You may be entitled to both or one of the instalments.

The amount of the instalments is calculated in two different ways:

• The amount of the first instalment is calculated based on your electricity bills for November and December.
• The amount of the second instalment is calculated based on your electricity bill for January 2023 and is multiplied by two.

Below are examples of how the reimbursement amounts are calculated.

Example 1

The customer’s electricity consumption is 1,000 kilowatt-hours in November, 1,500 kilowatt-hours in December and 1,500 kilowatt-hours in January. The customer has a fixed-term contract valid until the end of 2023 for a price of EUR 3.72 per month + 24.8 cents per kilowatt-hour (due to the VAT rate cut, the prices are EUR 3.1/month and EUR 22/kWh in December and January). The share of electric energy accounts for EUR 251 in November, EUR 333.10 in December and EUR 333.10 in January in the customer's electricity bill.

• The total price of the customer's electricity contract was EUR 251/1,000 kWh = EUR 25.10 cents/kWh in November, EUR 333.10/1,500 kWh = EUR 22.21 cents/kWh in December and EUR 333.1/1,500 kWh = EUR 22.21 cents/kWh in January.
• The customer is entitled to reimbursement for electricity costs from November to January because the total price of the contract has been more than 10 cents per kilowatt-hour in November, December and January. 
• For November, the price taken into consideration in the reimbursement is EUR 251 - EUR 90 = EUR 161, of which the reimbursement is 50%, or EUR 80.50.
• For December, the price taken into consideration in the reimbursement is EUR 333.10 - EUR 90 = EUR 243.10, of which the reimbursement is 50%, or EUR 121.55. 
• For January, the price taken into consideration in the reimbursement is EUR 333.1 - EUR 90 = EUR 243.10 multiplied by two, i.e. EUR 486.20, of which the reimbursement is 50%, or EUR 243.10.
• The customer receives a total reimbursement of EUR 445.15, of which EUR 80.50 + EUR 121.55, i.e. EUR 202.05, is paid in the first instalment and EUR 243.10 in the second instalment.

Example 2

The customer has a market-based electricity contract that is valid until further notice. The share of Electric energy accounted for EUR 250 in November, EUR 450 in December and EUR 140 in January in the customer's electricity bill.

• The customer is entitled to reimbursement for electricity costs for the period between November and January because they have a market-based electricity contract.
• For November, the price taken into consideration in the reimbursement is EUR 250 - EUR 90 = EUR 160, of which the reimbursement is 50%, or EUR 80.
• For December, the price taken into consideration in the reimbursement is EUR 450 - EUR 90 = EUR 360, of which the reimbursement is 50%, or EUR 180. 
• For January, the price taken into consideration in the reimbursement is EUR 140 - EUR 90 = EUR 50 multiplied by two, i.e. EUR 100, of which the reimbursement is 50%, or EUR 50. 
• The customer receives a total reimbursement of EUR 310, of which EUR 80 + EUR 180, i.e. EUR 260, is paid in the first instalment and EUR 50 in the second instalment.

Example 3

The customer’s electricity consumption is 3,000 kilowatt-hours in November, 4,500 kilowatt-hours in December and 4,000 kilowatt-hours in January. The customer has had a fixed-term electricity contract valid until the end of December 2022 for a price of EUR 3 per month and 8 cents per kilowatt-hour (due to the VAT rate cut, the price in December was EUR 2.66/month and EUR 7.10/kWh in December and January). However, the customer has made a fixed-term contract for the new year at the price of EUR 3/month and 35 cents per kilowatt-hour, starting at the beginning of January. The share of Electric energy accounted for EUR 243 in November, EUR 322.16 in December and EUR 1,403 in January in the customer's electricity bill.

• The total price of the customer's electricity contract was EUR 243/3,000 kWh = EUR 8.10 cents/kWh in November, EUR 322.16/4,500 kWh = EUR 7,16 cents/kWh in December and EUR 1,403/4,000 kWh = EUR 35.08 cents/kWh in January.
• The customer is not entitled to reimbursement for November or December because the total price of their electricity contract has not exceeded 10 cents/kWh. Based on the total price of the electricity contract in January, the customer is entitled to the second reimbursement instalment.
• For January, the price taken into consideration in the reimbursement is EUR 1,403 - EUR 90 = EUR 1,313 multiplied by two, i.e. EUR 2626, of which the reimbursement is 50%, or EUR 1,313.
• The customer receives a total of EUR 1,313 in reimbursement, which is paid in the second instalment.

As a rule, no, you do not; the electricity company will pay the reimbursement automatically in the customer’s electricity bill.

In the following exceptional situations, you must separately apply for the reimbursement from the electricity company:

1. You have changed your electricity provider. In this case, your former electricity provider will pay the reimbursement to your bank account. Contact your former electricity provider directly.
    
2. Your electricity provider has filed for bankruptcy. In this case, the Energy Authority will pay the reimbursement to you as a bank transfer. We will publish the application instructions and the application form on our website and provide information about the process separately.

The first instalment of the reimbursement for electricity costs is primarily paid in a bill due in April. If the customer does not receive an invoice in April, the first instalment will be paid in the following invoice.

Correspondingly, the second instalment will be paid in the following invoice.

As electricity companies pay the reimbursements, the payment process may require changes to the companies’ information systems. For this reason, the Act under preparation proposes that companies could receive additional time to pay the reimbursement under an exemption granted by the Energy Authority. Companies may receive an extension of up to three months from the expected payment date.

In case of problems, first contact your electricity provider and request them to rectify the error. The electricity company has one month to process your request for rectification. Please note that the claim for rectification of an error in the reimbursement does not affect the due date of the electricity bill subject to the request.

You can request the electricity company to correct an error if

1. the electricity company has not paid you the reimbursement to which you are entitled,
2. the electricity company has paid an incorrect amount or made some other error in paying the reimbursement or
3. the payment of the reimbursement has been delayed or has been otherwise incorrect.

 

Submit a request for rectification to your electricity supplier within 30 days of the due date of the electricity bill where the error occurred.

If the payment of the reimbursement has been delayed, you can request that the compensation be paid within 30 days of the month during which the electricity provider should have paid the reimbursement in your electricity bill.

The electricity company has one month to process your request for rectification. After this, you can submit an application to the Energy Authority to correct an error if

• the electricity company does not correct the error or
• the electricity company does not provide any justification for rejecting your request.

Please note that the Energy Authority will not process your application if

• you have not first requested your electricity provider to rectify the error or
• you send the application to the Energy Authority before the expiry of the one-month processing period reserved to the electricity company to rectify the error.

We will publish more detailed instructions on how to submit an application to the Energy Authority on our website. We provide information about the process separately.

The tax credit for electricity or assistance with electricity costs does not affect the reimbursement for electricity costs. Similarly, the reimbursement has no effect on other forms of assistance you may receive.

You may receive an extended payment period of up to 120 days from the original due date of your electricity bill. The electricity company may only grant an extended payment period for bills that have not yet expired. Ask your electricity provider for an extended payment period before the bill’s due date. Your electricity provider must grant you an extended payment period.

The Energy Authority supervises that companies comply with the law obligating them to grant an extension to the payment period.

You may receive a tax credit for electricity if the electricity bills for your permanent dwelling are high. This is a temporary tax credit due to high electricity prices. You may only receive the tax credit for the period between January and April 2023.

If the total cost of electric energy for the 4-month period exceeds EUR 2,000, you may be entitled to the tax credit. The tax credit is 60% of the electric energy costs from January to April that exceed EUR 2,000.

• The credit may not exceed EUR 2,400 per permanent dwelling. The credit is specific to the place where the electricity is used, not personal. For example, spouses living in the same dwelling may receive a credit of up to EUR 2,400 in total.
• If you have several permanent dwellings at the same time, the credit is only granted for one main dwelling. The tax credit is not granted for the electricity costs of recreational dwellings.
• You will receive the tax credit for electricity in full if the costs of electric energy are EUR 6,000 for the 4-month period.
• The tax credit for electricity and other tax credits for household expenses have a credit threshold of EUR 100, which you have to pay yourself. If you do not claim other tax credits for household expenses, the threshold amount is deducted from the tax credit for electricity. The tax credit for electricity does not affect the work or maximum amounts of the tax credit for household expenses.
• You can share the tax credit for electricity with the person you are living with if you have both paid the electricity costs.

For more information on the tax credit for electricity, contact the Finnish Tax Administration: vero.fi/sahkovahennys.

The Energy Authority does not process issues related to the tax credit for electricity.

Due to the considerable rise in electricity prices in 2023, consumers can receive assistance with their electricity costs. The primary method is to apply for a tax credit for electricity from the Tax Administration. Households that do not accumulate enough taxes due to low income can apply for assistance with electricity costs from Kela.

The assistance with electricity costs is intended for low-income households that cannot receive a full tax credit for electricity in their taxes. The own-liability threshold for the assistance is EUR 400 per month. The amount of the assistance is 60% of the amount of the electricity bill, excluding the threshold of EUR 400.

You cannot receive the tax credit for electricity and assistance with electricity costs at the same time.  Even a small amount of assistance removes the right to the tax credit.

For more information on assistance with electricity costs and how to apply for it, visit the Kela website at kela.fi/sahkotuki.

The Energy Authority does not process issues related to assistance with electricity costs.