Fingrid Oyj is the Finnish electricity transmission system operator responsible for the nation-wide transmission grid in Finland. The company is to develop the transmission grid, maintain a continuous balance between electricity generation and consumption, settle the electricity supplies between the parties on a nation-wide level, and improve the functioning of the electricity market. Moreover, Fingrid is responsible for the cross-border transmission connections to the other Nordic countries and Russia.
The duties belonging to the company are organised and the responsibilities for them are determined in accordance with the management principles. The objective is to secure sufficient expertise and create facilities for efficient working.
The Fingrid Group encompasses the parent company Fingrid Oyj and its fully-owned subsidiary Finextra Oy (former Fingrid Verkko Oy). The associated companies are Porvoon Alueverkko Oy (holding 33.3%) and Nord Pool Spot AS (holding 20.0%). The Group has no joint ventures.
Governance
Fingrid is a listed company whose shares are not subject to public trading. Since Fingrid has issued other publicly-quoted securities such as bonds, the company follows the applicable sections of the Finnish Corporate Governance Code published by the Finnish Securities Association, which came into effect on 1 October 2010. Moreover, the company’s operations or the duties of its administrative bodies are governed by regulations such as the Finnish Companies Act, Securities Market Act and Electricity Market Act.
By virtue of the Finnish Companies Act, articles of association and shareholder agreement, the corporate governance is divided between the general meeting, Board of Directors and President. Fingrid’s supreme power of decision is exercised by the shareholders in the general meeting. The Board of Directors of the company is responsible for its governance and business management. The Board of Directors ensures that Fingrid applies to the principles of good governance. The President is responsible for the operations of the company, assisted by the executive management group. Vital matters having bearing on Fingrid’s customer interface are prepared by the company’s Advisory Committee. Moreover, Fingrid’s articles of association, shareholder agreements and principles concerning the work of the Board of Directors ensure objective handling of matters.