Stock Exchange release 10 September 2020 at 10:00 EET
Fingrid keeps main grid service fees unchanged
Main grid service fees will remain unchanged in 2021. Fingrid has succeeded in operating cost-efficiently and keeping its pricing low, although the transformation of the power system has substantially increased the need for investments in the main grid. Fingrid has been able to reduce its fees by more than ten per cent since 2017. Transmission reliability has not been compromised despite the high level of cost-efficiency. The main grid and the cross-border connections to Finland’s neighbouring countries operate reliably.
By international standards, Fingrid is a high-quality, cost-efficient transmission system operator. Fingrid has been highly successful in European comparisons of the prices charged by European transmission system operators and in global comparisons of maintenance efficiency. The company has focused on its core mission and enhanced its investment processes, operations and financing. A stable and reliable regulatory model supports Fingrid’s cost-improvement activities. The price level for 2021 will be more than 10 per cent lower than in 2017 in real terms.
The climate-neutral Finland of 2035 needs a reliable main grid
The main grid will serve as a platform for the clean power system. The transformation we are seeing in the power system requires major changes in the electricity generation, network and market structures. Fingrid is driving these changes and developing its main grid in cooperation with its customers. The power system is becoming cleaner, and emission-free electricity is being added to the network in increasing quantities.
These changes call for substantial investments in the main grid, financed by the main grid service fees collected from customers, congestion income collected from the price area borders, and debt. Investments are made holistically, taking into consideration the needs of customers and the electricity market. Congestion income arising at the borders is steered in full to investments aiming to maintain and improve cross-border transmission capacity. The company is also investing in ensuring the reliability of the main grid, and especially the cross-border connections, so that the electricity market functions as efficiently as possible without failures.
“Fingrid aims to keep price changes moderate in the future by ensuring that its investment programme is correctly timed and dimensioned, by managing cash flows and risks effectively, and by investing in projects that further enhance efficiency. In practice, the yield level of the regulatory model, which is declining year by year, also keeps prices in check,” says CFO Jan Montell.
“I am highly satisfied that we are able to keep our grid service fees unchanged during these challenging times. While the consumption of electricity has decreased due to the mild winter and the coronavirus pandemic, we are investing at a rapid pace to address the growing needs of the future,” says Jussi Jyrinsalo, Senior Vice President in charge of customer relationships and grid planning.
Jan Montell, CFO, Fingrid, tel. +358 30 395 5213
Jussi Jyrinsalo, Senior Vice President, Grid Services and Planning, tel. +358 30 395 5118
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