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8.2. Advantages and disadvantages of the electricity market
Apart from ownership and regulation, viewpoints relating
to the functionality and effects of the electricity markets were also
assessed. The expansion of the market to the Nordic countries is
experienced as a positive thing, at least in respect of the availability
of electricity. According to the majority (62%) of respondents, 'Finland's
presence in the pan-Nordic electricity market ensures that there will be
no shortage of electricity in Finland'. Only a small minority disagrees
with this claim (10%). This result has not essentially changed from last
year (primarily the uncertainty has diminished). Without underestimating
the benefits to the community, it can still be stated that in poorer times
- during periods of drought - the other Nordic countries have probably no
electricity to sell either [Figure 32.].
Naturally, dependency on other countries is, nevertheless, an unfavourable
situation. The claim that 'Finland should be self-sufficient in its
electricity generation, without dependency on the economic trends of the
international electricity trade' is supported by two out of three
respondents (66%). The more or less pious hope about self-sufficiency is
now nearly as usual as a year ago. The completion of a new nuclear power
plant will probably contribute to the realisation of this hope (no
figure).
Although the fact that the markets are pan-Nordic is not experienced as
daunting, their more extensive opening arouses feelings that refer to a
certain degree of concern. The statement 'A consequence of the
deregulation of the electricity market within the entire EU is that giant
companies from Central Europe will take over the Finnish electricity
market' is agreed with by more people (48%) than disagreed with(12%). This
trend is now considered somewhat more probable (43 believed) than before
(no figure).
Attitudes were also tested on a slightly more everyday level. The present
'market-based' system has been criticised in public for, among other
things, its diminished security of supplies. This criticism has taken a
concrete form in connection with power cuts. These problems, as well as
the delay in clearing work after storms, have been explained by the fact
that the present system is 'too cost-efficient'. In these types of
opinions, people have rather harsh views. The claim 'the recent extensive
power cuts prove that market control cannot guarantee security of
supplies' is agreed with by almost two out of three respondents (64%; this
is a new question, so there is no reference data; no figure)
The unsympathetic views on the present situation are also reflected in
other views on the methods of developing productiveness. The accusation
'as a result of market competition, the electricity companies aim to
improve their price competitiveness only by cutting costs, not by
developing new electricity generation' is agreed with by only about one in
two (55%). Only about one in ten (11%) dare to disagree with this claim,
while the number of those in doubt is great. This result is in practice
identical with the result received a year ago (no figure).
Naturally, the key touchstone for the new system is its impact on the
price of electricity. The follow-up measurement that charts the past price
impacts of market competition brings out a significant development. The
proportion of those who think that competition has reduced the price of
electricity consumed by their own household has diminished strongly from
the previous year. As a similar kind of shift was detected in the two
previous measurements, the total change is great. Now only less than one
in five (19%) believe in a positive impact on the price of electricity. At
the same time, the proportion of those denying the fact has increased to
more than half (59%). Not only variable feelings but also variable facts
can be found behind the change: the electricity bought by consumers has
gradually become more expensive during the past few years. This result
should be interpreted considering the fact that, at the time of the study,
the reductions in electricity prices of certain companies had not yet been
in the news [Figure 33.].
When speaking about the 'greed' accusations made publicly following the
price development of electricity, public opinion shows sharp criticism.
The new formulation of the claim 'the recent rise in electricity prices is
based on companies' profit targets rather than on drought and frost' is
agreed with by a clear majority (62%). Only less than one in five (18%)
dare to disagree. So market forces are believed to have more of an
influence than the natural forces. Without taking any stand on the
proportion of the result that can be explained by the joy of populistic
malevolence and the proportion explained with matter-of-fact assessment,
this does not give a very good picture of the credibility of the
electricity industry and its justifications (no figure).
The results also give a total grade for the functioning of the electricity
market. As the system is still fairly new and adaptation to its practices
is still under way, it is a question of an interim analysis of the
situation. Despite all the criticism, the public verdict is not
condemning, albeit not acquitting either. The claim on the subject, 'now
that there is a few years' experience in the deregulation of the
electricity market, it can be said that the solution was successful',
arouses mainly uncertainty. There are as many of those who accept this
claim (28%) as those who deny it (29%). As a matter of fact, the
distribution is the same as a year ago, the only difference being that the
proportion of uncertain respondents is somewhat smaller. The great number
of those who have no opinion (now 42%) can be interpreted as a kind of
anticipatory 'let's see' attitude. The future will show which way public
opinion will sway [Figure
34.].
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