The Finnish Government has proposed a new act that would allow retail electricity prices to be regulated during an electricity price crisis. The aim is to lower electricity costs for households if such a crisis is declared, the Ministry of Economic Affairs and Employment said on 5 November 2026.
The proposal is part of a package of national measures linked to the European Union’s electricity market model. If the Council of the EU declares an electricity price crisis in a member state by implementing decision, that state may introduce measures such as price regulation for households. The Council can do so on a proposal from the Commission if wholesale and retail prices rise substantially and are expected to stay high for an extended period. The Finnish act would set up the legal and technical framework in advance, so that the Government could decide quickly on the introduction and duration of regulation, within the appropriation allocated by Parliament.
The mechanism is flexible rather than a fixed price cap. Regulation would apply only to a defined share of consumption, up to 80 per cent of a household’s median consumption or, secondarily, its actual consumption. As a rule, the subsidised volume in kilowatt-hours per month would be based on the household’s median consumption in the same calendar month of the previous year and the months immediately before and after it. The price the household pays its retailer for that volume would follow from a basic price of at least 18 cents per kWh, excluding tax, and a subsidy ceiling set in the Government decision. Market prices under the customer’s contract would apply to the remaining consumption.
“The electricity market should primarily operate on market terms, but we must also be prepared for exceptional circumstances,” said Minister of Climate and the Environment Sari Multala. The act and related amendments are due to enter into force in spring 2027.
