• Fri. Feb 23rd, 2024

Electricity and Heat Production in Limbo: Unions Plan Political Strikes During Freezing Season


Feb 13, 2024
Stock exchange electricity customers face worst-case scenario as power plants go on strike

This week, trade unions are planning political strikes that primarily target electricity and heating plants. According to energy company expert Peter Strandberg, these strikes during the freezing season could lead to significant difficulties for electricity and heat production. While it is expected that the plants will not be shut down, a breakdown could cause concerns that in turn may affect spot prices and supply of electricity.

Despite these concerns, market estimates predict that the VAT-free spot price of electricity will remain at around 55-70 euros per megawatt hour between Wednesday and Friday. The electricity union has planned 24-hour strikes between February 14th and 16th which include a reserve. The strikes will occur on Wednesday at the Loviisa nuclear power plant, Thursday at the Olkiluoto nuclear power plant, and Friday at various hydropower plants.

In addition to these strikes, other unions have announced strikes for Helsinki, Pietarsaari, and Kuopio. A significant event for the electricity market is Olkiluoto 3’s upcoming maintenance break, which may result in high or stable prices if the cold weather continues.

The good water situation is a positive indication right now. It has been influenced by strong storms in December and January. This situation can serve to limit electricity price development.

According to CEO Jukka Leskelä, delivery of district heating to customers can be ensured during the strikes. However, with a large number of staff potentially affected, the situation is fragile as unexpected incidents could result in plants being shut down. He also criticizes the trade unions, stating that they are “playing with quite big risks” and “things that are out of their control,” as they cannot predict electricity consumption, production, import, or wind power situation when issuing strike notices.

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