Fingrid Oyj
Stock Exchange Release 3 October 2018 at 10:00 EET
Fingrid to decrease grid fees for 2019 by eight per cent on average
As of the start of 2019, Fingrid will decrease grid service fees. Grid service fees are very cheap in Finland compared to the rest of Europe. Fingrid’s operations have a solid foundation and thus grid service fees are expected to remain stable also in the future.
As of the start of 2019, Fingrid will decrease grid service fees by eight per cent on average. The decrease in fees is made possible by the positive earnings development in the first part of 2018, excellent cost-efficiency, a moderate investment rate and predicted slight growth in electricity consumption. The gradually rising price level for reactive power fees, the goal of which is to reduce the transmission of reactive power in the transmission grid, will be adhered to.
Fingrid’s goal is to keep price changes moderate in the future through a well-timed and well-designed investment programme, by further developing the market-oriented outsourced operating model and utilising the opportunities made available by digitalisation. This is also supported by an effective and long-term regulatory model. The transmission grid investment level has settled at just over EUR 100 million per year. The investments to be carried out in the next few years are due to the aging of the national grid and the changes taking place in the power production structure towards a low-carbon energy system.
The Electricity Market Act and European legislation lay down Fingrid’s obligations in terms of maintaining the balance of production and consumption and the development of the electricity markets and the national grid. The grid fee covers costs resulting from these activities. The current price structure is based on the “user pays principle” according to which the burden of the costs is allocated based on the demands that different customers place on the grid. Consumption fees focus on periods when the volume of electricity being transmitted is at its greatest and production fees focus on the grid capacity reserved by power plants. Fingrid’s operations and pricing are monitored by the Energy Authority.
- I am proud of the fact that we have succeeded in solidifying the company's operations, finances and funding to a level that makes it possible to decrease grid service fees once again. The current year did not result in increases in grid service fees either, which means that we have managed to keep costs low for some time. Systematic and responsible operations in close collaboration with all of our stakeholders is bearing fruit. Reliable electricity and affordable grid transmission prices are ways in which Fingrid can contribute to the well-being and competitiveness of its customers and society, says Chief Financial Officer Jan Montell.
Further information:
Jan Montell, Chief Financial Officer, tel. +358 40 592 4419