Security of Supply Fee for Electricity Increases Sixfold Due to Geopolitical Threats
The security of supply fee, collected as part of the electricity transmission price, has risen sharply since the beginning of April, increasing sixfold to bolster Finland’s crisis preparedness. The adjustment comes in response to heightened security risks, including Russia’s war of aggression and the lingering effects of the coronavirus pandemic, which have underscored the need for stronger societal resilience (Yle).
The fee, which is tax-like and remitted directly to the state by electricity distribution companies, has jumped from €0.00013 to €0.00085 per kilowatt-hour. For an average consumer, this translates to a modest but noticeable increase: approximately €1.50 more per month for an electrically heated detached house and around €0.10 for an apartment building, according to calculations by Lahti Energia. However, the impact is far greater for industrial users, with the largest plants facing additional annual costs exceeding €10,000 (Yle).
Funding Crisis Preparedness in a Changing Energy Landscape
The security of supply fee is designed to finance Finland’s readiness for disruptions, ensuring the availability of critical services such as fuel, electricity, and food during emergencies. Jaakko Pekki, head of the operational department at the National Emergency Supply Agency, describes the fee as an "insurance premium," with each Finn contributing an average of €16 annually (Yle).
The fund also supports other preparedness measures, including mandatory stockpiling of medicines and investments in telecommunications infrastructure. Historically, the fee has been tied to energy consumption, particularly fossil fuels. However, as Finland shifts away from fossil energy, the revenue base has shrunk, necessitating the recent increase. The adjustment is expected to raise the fund’s annual revenue from €36 million to €91.9 million, an increase of roughly €56 million (Yle).
Pekki highlights that the new security environment—marked by geopolitical tensions, energy crises, and other threats—has made stronger preparedness essential. Unlike many other countries, Finland’s system allows for rapid response without requiring supplementary state budgets, enabling quicker action during crises (Yle).
Broader Impact on Energy and Transport Sectors
The fee is not limited to electricity; it is also levied on petrol and diesel, ensuring a broad funding base. While the increase may seem small for individual consumers, its cumulative effect is significant for the national preparedness framework.
For transport operators, security of supply has become a daily consideration. Matts Lindedahl, transport manager at RL Trans, noted in early June that the issue now plays a central role in the logistics sector’s operations (Yle). The fee’s expansion reflects Finland’s proactive approach to safeguarding essential services amid evolving global risks.