Finland's government has reached an agreement on some of the terms of the proposed support package aimed at helping people meet the rising cost of energy bills.
A press release by the Ministry of Economic Affairs and Employment confirmed that — as previously reported — a one-off lump sum reimbursement will be paid to consumers for electricity bills from November and December.
The amount of compensation will depend on a household's energy consumption during the last months of this year, and will be subject to a monthly cap of 700 euros.
According to the government's calculations, the support measure will cost the state an estimated 400 million euros.
Prime Minister Sanna Marin (SDP) said on Monday that the bill proposing the reimbursement payment will be submitted to Parliament as soon as MPs return after the Christmas break.
Price cap proposal ready early next year
In addition to the reimbursement payment, the government is also drafting legislation to introduce two further measures aimed at helping consumers deal with the burden of rising electricity prices.
The first is a guarantee on energy bills that will allow electricity companies to give consumers more time to pay their bills. This measure should help those who receive individual bills that are considerably larger than normal. Businesses and households will be able to take advantage of this subsidy.
Meanwhile, the ministry's press release noted that the details of a proposed price cap — which would limit how much households can be charged for their power — will be finalised by spring next year.
The measures are likely to be funded by a new windfall tax which will be levied on energy firms making excess profits at the moment. That revenue will however only be received in 2024.
The price cap measure has raised concerns that it could lead to an increase in electricity consumption, or at least discourage people from using energy more efficiently. This could potentially exacerbate the electricity shortage that is the root cause of the price crisis.
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