Energy situation and financial support for electricity

The value-added tax on electricity has been lowered from 24 to 10 per cent between 1 December 2022 and 30 April 2023. The reduction does not apply to transmission fees.

You may be entitled to the tax credit if the electricity bills for your permanent home exceed EUR 2,000 between 1 January and 30 April 2023. The tax credit does not cover the cost of electricity transmission. The tax credit is 60 per cent of those electricity expenses that exceed EUR 2,000. 

Applications for the tax credit should be submitted to the Finnish Tax Administration.

• Tax credit for electricity | Finnish Tax Administration

Financial support for electricity is available to households that cannot fully make use of the fixed-term tax credit for electricity due to their low income.

Applications for fixed-term support should be submitted to Kela.

• Temporary assistance with electricity costs | Kela 

The government parties have reached an agreement on a retroactive lump-sum reimbursement for electricity costs. The details of the government proposal are still being finalised. The proposal will be submitted to Parliament as soon as possible.

Consumers would not have to apply for the reimbursement separately, as electricity companies would deduct the sum from electricity bills automatically. The lump sum would not affect other forms of support for electricity costs.

In the proposed model, a reimbursement would be paid for 50 per cent of the part of consumers’ electricity bills that exceeds the threshold of EUR 90/month. The maximum reimbursement would be EUR 700 per month, and it would apply to electricity contracts where the price of electricity exceeds 10 cents per kilowatt-hour. 

The deadline for submitting comments on the reimbursement model was 22 January 2023. 

• Ministry of Economic Affairs and Employment 10 January 2023 I Draft act on retroactive lump-sum reimbursement for electricity costs circulated for comments (in Finnish)
• Request for opinions on the government proposal for a lump-sum reimbursement for electricity costs (in Finnish)

The Government is preparing a model similar to the lump-sum reimbursement for consumers to support limited liability housing companies that use electricity for heating and cover the costs of the electricity used for heating. The Government will submit a separate proposal on the matter.

The Government proposes that electricity companies grant an additional payment period of up to four months for electricity bills (for electricity consumed between 1 January and 30 April 2023) at the customer’s request. Non-consumer customers would be granted an additional payment period of up to 60 days from the original payment date of the bill.

• Ministry of Economic Affairs and Employment 10 January 2023 I Draft act on retroactive lump-sum reimbursement for electricity costs circulated for comments (in Finnish)