Fingrid to use congestion revenue to cover higher costs and waive grid service fees
October 12 2022 - 4:00AM
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. +358 30 395 5213Jussi Jyrinsalo, Senior Vice President,
Fingrid Oyj, tel. +358 30 395 5118
Email addresses are in the form
firstname.lastname@fingrid.fi
Fingrid 29 (LSE:38FE)
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