Fingrid to use congestion revenue to cover higher costs and waive grid service fees

    Fingrid to use congestion revenue to cover higher costs and waive grid service fees 

Stock Exchange Release 12 October 2022 at 12:00 EET

Fingrid will use its record-breaking congestion revenue to cover higher costs and will waive the grid service fees in December this year. The company has made plans to give its customers six months with no grid service fees in 2023. If this comes to fruition, it will reduce the current fees for main grid customers by approximately EUR 300 million. The decision has already been taken to waive the grid service fees for December 2022 and January, February and June 2023.

High electricity prices and substantial regional differences in prices have increased the congestion revenue accruing to transmission system operators. Unlike in the other Nordic countries, Fingrid does not accrue congestion revenue on the transmission connections within the country. The congestion revenue accumulated at Finland’s borders has led to Fingrid accruing a much larger share of the congestion revenue than in previous years. At the same time, the company’s market-based costs have increased significantly due to the unusually high electricity price. In line with the Energy Authority’s decision, Fingrid has spent the congestion revenue on investments to increase the cross-border capacity and on covering its higher operating costs without needing to substantially increase its main grid prices during the year.

“The extraordinary circumstances in the energy market have caused the company’s electricity market-based costs to rocket. However, we have been able to continue as planned with the most extensive programme of investments in the company’s history. The previously moderate level of congestion revenue has reached a record high in the Nordic system. We aim to use our accrued congestion revenue actively in a way that benefits our customers. We hope the decision to waive the grid service fee will support our customers through the abnormal circumstances in the energy market,” states Jukka Metsälä, Fingrid’s CFO.

Neither the current grid service pricing structure nor the unit prices will change as a result of this plan. In the future, the amount charged in grid service fees may change more than once a year, and any announced prices are valid indefinitely. The present plan for the pricing of main grid services will not affect the pricing of the company’s other services.

Fingrid measures the productivity and quality of its operations, collects customer feedback and participates actively in international studies to measure efficiency in other to further enhance its operations. The company’s main objectives are to maintain a high level of system security and ensure a reasonable electricity transmission price. Fingrid’s services are a source of competitive advantage for Finnish businesses and facilitate the green transition of the energy system in line with its customers’ wishes.

Further information:Jukka Metsälä, CFO, Fingrid Oyj, tel. [phone]Jussi Jyrinsalo, Senior Vice President, Fingrid Oyj, tel. [phone]

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