Stock exchange release 22 May 2024
Fingrid has made the decision to collect grid service fees from customers between July and December 2024 in accordance with the valid pricing. In keeping with its earlier announcement, the company waived grid service fees for January, February and June 2024.
On 21 September 2023, Fingrid announced that it would waive grid service fees for January, February and June of 2024 and that it plans to waive the fees for another three months in the latter half of 2024.
Fluctuations in the price of energy and large transmission volumes in the main grid have increased uncertainty in Fingrid's market-based cost items. The decision to collect grid service fees in July-December 2024 is based on the increase in the cost of transmission grid operations brought about by the expansion of the electricity system and the increase in weather-dependent electricity generation, and on the implementation of necessary grid investments.
An exceptional amount of congestion income, arising from differences in the price of electricity, accumulated for Fingrid in 2022 from the Finland-Sweden and Finland-Estonia transmission connections. The accumulated congestion income enabled the waiving of grid service fees in the first half of 2024. Between 1 January 2022 and 31 March 2024, Fingrid used roughly EUR 750 million in congestion income to benefit its customers by way of reduced grid service fees.
Fingrid will use accumulated congestion income for the benefit of its customers in future as well. The Energy Authority decides on the use of the congestion income received by Fingrid for investments, to cover costs and to lower grid service fees, in accordance with EU legislation.
The capacity to produce weather-dependent, renewable electricity has grown sharply in the past few years, which has also increased fluctuations in the price of electricity and the volume of main grid transmissions. The number of connection enquiries received by Fingrid indicates that electricity production and consumption will grow in the future, which calls for investments in the main grid. Fingrid's investment programme is progressing, and the level of investments will increase in the course of 2024.
The energy sector's changing operating environment coupled with the aforementioned trend weaken the predictability of operating costs. Variations in the company's costs naturally affect customer pricing and increase the need to adjust prices.
Fingrid's grid service customers are electricity producers, regional network operators and major electricity consumers. Households are not direct customers of Fingrid, and Fingrid's main grid accounts for around two per cent of a household's electricity price.
Further information:
Jukka Metsälä, CFO, Fingrid Oyj, tel. +358 30 395 5213
Jussi Jyrinsalo, Senior Vice President, Fingrid Oyj, tel. +358 30 395 5118
Email addresses are in the format: firstname.lastname@fingrid.fi
