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8.2. Advantages and disadvantages of the electricity market
In addition to ownership and regulation, viewpoints relating to the functionality and effects of the electricity markets were assessed. According to earlier surveys, the pan-Nordic scope of the market has been regarded as a positive factor in that it ensures the availability of electricity. Nevertheless, dependency on other countries has always been deemed negative. The statement 'Finland should be self-sufficient in its electricity generation, without dependency on the economic trends of the international electricity trade' is supported by four out of five respondents (80%). The share of people having this opinion is almost as high as last year. The wish for self-sufficiency has visibly strengthened year by year, and was higher than ever in last year's survey. The completion of the fifth nuclear power plant currently under construction will help to realize this wish [Figure 37]. Naturally, the key test for the new system is its impact on the price of electricity. The follow-up indicator that studies the respondents' experiences of the price impacts of market competition shows clear trends. This indicator, already proven unusually inconsistent, now shows a new twist: a little over a quarter (27%) of the respondents now consider that competition has reduced the price of electricity used by their own household. A half of the respondents disagree (49%). Despite the fact that this assessment is not positive, it is reasonable when studied relatively. The difference when compared with the low figures of the last survey - the result in 2006 together with the result of 2003 were the most critical during the entire follow-up period - is significant. The assessments reflected fairly positive expectations at the beginning of the follow-up period. In the early years of the new millennium, the share of those believing in the positive effect of the competition decreased, totalling a rather sizeable change. Not only changing feelings but also changing facts can be observed behind these turns in the trend. There appears to be a connection not only with the price development of electricity and the public discussion of it but also with the actual electricity price development. The most major peaks in criticism, at the end of 2003 and in 2006, coincide with peaks in the price statistics of the Energy Market Authority [Figure 38]. The defensive statement made in connection with the increases in the price of electricity, 'Electricity is cheaper in Finland than in most of the other EU countries', evokes considerable uncertainty (51%). However, somewhat more people consider this to be true (30%) than false (20%). The assessments reflected fairly positive expectations at the beginning of the follow-up period. Better knowledge of the issue would likely not slacken the public opinion, however. What evokes reactions on the estimates of an issue is the change observed, not the absolute or relative level of it [Figure 39]. Unlike when talking about consumer prices in general, people do not generally fantasize about reaching a 'European energy price level'. More people deem the statement 'If the current Nordic electricity market were to expand to the entire EU/Europe, the price of electricity in Finland would clearly increase' true (37%) than untrue (11%). The large share of respondents who do not comment on the issue in any way (51%) shows a large share of uncertainty, however. Since this is a new indicator, the results cannot be compared to any previous results (no figure). The results also give a total grade for the functioning of the
electricity market. Despite the visible criticism, public opinion is not
negative; neither is it positive, however. The statement 'Now that there
have been several years of experience with the deregulation of the
electricity market, one can say that the solution was successful', arouses
more uncertainty (43%) than anything else. Somewhat more people deny this
claim (33%) than accept it (24%). The distribution is not as critical as
in the previous survey, but it is still the second most critical so far.
Despite the changes in the distribution and the fact that people have more
experience with deregulation, the share of people with no opinion has
remained high. The future opinions of those who now just wish to wait and
see will decide which way the public opinion will sway [Figure
40]. |