The application period for electricity cost assistance opens in January 2023
Parliament has approved the law temporary financial support for electricity costs. The purpose of the aid is to help low-income households pay electricity bills during a sharp rise in the price of electricity.
Parliament’s law on temporary electricity cost assistance will enter into force on January 1, 2023. The support is intended for households that, due to their small annual income, are not able to make full use of the electricity tax credit.
Tax credit is the primary form of assistance for electricity costs. Tax credit and electricity cost assistance are mutually exclusive, so households can only receive one or the other. Getting even a small subsidy for electricity costs closes the recipient’s tax credit.
The tax credit and subsidy cover both electricity costs, i.e. electricity, value added tax and basic fees. They are not available for electricity transmission costs or possible late fees.
The electricity bill must be at least 400 euros per month
The application period for electricity cost support starts in January 2023. The application form will be available on January 7, 2023. Applications must be accompanied by an electricity bill.
The aid is intended for electricity costs incurred between 1 January and 30 April 2023. Support is available for one apartment, which the recipient uses as a permanent home. The home must be located in Finland.
The deductible limit is 400 euros per month. The subsidy covers 60% of electricity costs that exceed the deductible limit. The maximum amount of support is 660 euros per month. An applicant whose electricity costs are at least 1,500 euros per month can receive the maximum amount. According to the law, the minimum amount to be paid is 5 euros per month.
The electricity cost assistance is tax-free, and it does not affect other Kela benefits customers may receive. However, customers who received income support from an electricity bill usually do not receive support from the new program for that bill.
The eligibility of the electricity tax credit should be checked first
Only those who cannot take advantage of the full tax credit for electricity costs receive Kela’s electricity cost assistance.
Those whose electricity costs exceed 2,000 euros between January 1 and April 30, 2023 can get a tax credit. The tax credit is 60% of electricity costs over 2,000 euros. The maximum amount of electricity tax credit for 2023 is 2,400 euros.
For example, if the household’s total electricity costs in January-April are 4,000 euros, the household can apply for a tax credit of 60%, i.e. 1,200 euros, of the amount exceeding 2,000 euros. If the household’s total income tax bill for 2023 is less than EUR 1,200, in which case the household cannot apply for a full tax credit, the household is entitled to electricity costs.
You can use the tax percentage calculator on the website of the Tax Administration to estimate the accumulated taxes.
It can be difficult to predict your income tax for the whole year 2023 and your electricity expenses for January-April. However, you can apply for support until the end of 2023. You should keep electricity bills from January to April, because the bill must be attached to the application for electricity assistance.
More information for customers