英语论文网

MW and in 1998 to 840 MW.[14]

The nuclear power plants in Finland have attained the mark of very high load factors. As at 1997, the load factors were above 94% for the reactor blocks. So far this load factors has been the highest achieved in the world for any nuclear power plant.[15]

2.2 DEREGULATION

The Finnish electricity market was liberalized through a step by step reform process in accordance with international standards. These steps started before the 1990's and the purpose of these reforms were to make the operations and functions of the markets more effective this will in turn reduce cost for energy consumers. In a bid to encourage free competition in the markets, a major step was taken with the Electricity Market Law on June 1st, 1995. This made the Finnish electricity market to stand out as its became more open than the other energy markets in other countries in the world. In the start of November 1995, electricity consumers and distributors had the freedom to purchase power from any producer.[16]

2.3 PRICES

The total price of electricity is inclusive of the taxes, distribution fee, retailer's margin and the wholesale price. The whole sale price from the Nord pool is inversely proportional with the availability of water for electricity generation. The margins for retailers has been on a steady increase and sometimes starting at almost unsustainable levels. Generally, customers that have gotten their contracts renegotiated or changed suppliers have paid less than the customers who have not. As a result of competition, customers who have not switched suppliers have benefited from suppliers who have reduced their public tariffs.[17]

2.4 INVESTMENT

The efficient use of the markets and better utilization of capacity was part of the reason for deregulation. If there is a need for more capacity to produce power, then there will be a need to invest in generation. This will be done as long as generators have enough incentive to increase capacity.

The trading and exchange of power with neighboring systems has allowed Finland to make use of or consume more power without the need to invest in extra capacity. This can lead to a lot of savings on capacity and in turn cause the reduction in any market power.

2.5 REGULATION AND MARKET POWER

Finland has gained from the establishment of the Nord Pool. It is a market where Finnish generators now compete twice as much as in the Finnish market alone. The exercise of market power can make electricity markets to be vulnerable in the sense that large firms can raise prices to unfavorable levels. Studies have shown that the Nordic market will possess strong market power, especially if there become more cross border mergers in the near future.

The rate of return regulation in Finland does not fulfill the European Union Legislation requirements. This is presently under review and in future, distribution companies will have limits to their revenue because the new regulatory model will require the regulator to set limits for the return, depreciations and operational costs of the distribution business.

3.0 COST BENEFIT ANALYSIS

In this section, we will attempt to examine the benefits and loss of electricity deregulation in Finland. This will give an indication whether the policy has been positive or negative for t