North Karelian municipalities delay Palokki plant sale decision

The municipal owners of North Karelia Electricity have postponed a decision on selling the Palokki power plant to the state until September or October, Yle reports. The owners will hold a large seminar in September to gather more information.

The state has offered 40 million euros for the power plant in Heinävesi. Its goal is to dismantle the plant and its structures, freeing a route for migratory fish through the Palokki rapids. The plan is included in the government programme of Prime Minister Petteri Orpo.

The Prime Minister’s Office had hoped to receive a response to the offer by the end of August. Seppo Eskelinen, chair of the Joensuu City Board, which led Monday’s meeting, said the timetable was too tight.

“Some decision-makers still want more information before forming a position,” Eskelinen said.

The meeting addressed the basis for the state’s offer. The board of North Karelia Electricity considers 40 million euros to be less than half the power plant’s value.

Further information is being sought on the long-term outlook for the energy sector, taxation and issues including security of supply, Eskelinen said.

More than 100 people to attend seminar

The September seminar in Joensuu will include all municipal elected officials involved in the administration of North Karelia Electricity, as well as the company’s management. More than 100 people are expected to attend.

After the seminar, the matter will be considered separately by each municipality that owns shares in the company.

“A decision on whether to sell or not must be submitted to the Prime Minister’s Office in October. The matter cannot be delayed any further,” Eskelinen said.

Municipalities own 99 percent of North Karelia Electricity. The largest owner, the City of Joensuu, supports the sale.

Eskelinen said that leaving Palokki intact would damage the region’s reputation. He also noted that private sources have provided funding for the project.

He said he hoped the municipalities would reach a unanimous decision, although unanimity is not required.