Services

Transmission service terms for Fingrid's Russian cross-border connections 2012

Fingrid offers capacity on the 400 kV transmission connections from Russia for import purposes in lots as the capacity annually becomes available from the total of 1300 MW commercial capacity to all electricity market parties at equal, uniform and public principles.

New direct trade possibility for 100 MW capacity starting from 12.8.2011

Before making an agreement on transmission services with Fingrid, the customer shall agree with the Russian electricity seller on the electricity supply from Russia to Finland. The Russian main grid company, Federal Grid Company (JSC "FGC UES"), shall notify Fingrid on the transmission reservations. From this information, Fingrid can make the corresponding transmission service agreement. The transmission service is currently intended for a fixed-type import of electricity. When making an agreement with Fingrid on transmission service, the customer reserves a transmission right for a time period to be agreed upon separately. The smallest unit for transmission that can be reserved is 50 MW.

If the total volume of reservations received by Fingrid is larger than the transmission capacity offered, the available capacity will be distributed annually in proportion to the reservations made, unless those making the reservations or some of them reach some other arrangement between themselves or with the seller of electricity. A customer can waive his reservation if his full reservation cannot be confirmed.

Transmission service principles

Determination of the available cross-border capacity

The determination of the available cross-border capacity for the coming day and the daily handling as well as the confirmation of the hour by hour transmission programme is scheduled so that the customer can take imports from Russia into account when trading on the Nordic electricity exchange markets.

The available cross-border capacity hour by hour is determined on a daily basis based to the assessment of the production, consumption and transmission situation of the power system. The hour by hour cross-border capacity for the coming day is announced on the Fingrid's website.

Balance Management of Imports

As far as the cross-border connections managed by Fingrid are concerned, Fingrid takes care of the power balance between Finland and Russia on the Finnish side of the border. Fingrid is also responsible for the regulation power and balance power trade for a specific operating hour, carried out through these cross-border connections.

The transmission service gives the right to the import of electricity of the reserved power and of the volume given in advance and as confirmed. The confirmed import is dealt with as a measured import of electricity in the balance settlement process of electricity trades. The customer will report his final hour-to-hour trade schedule to Fingrid's power system control centre weekly and update it daily in the morning of the day preceding the day when the transmission takes place. Fingrid will confirm the trade schedule after obtaining approval for the schedule from the Russian party responsible for the procedure in question. The customer will report the import to a party responsible for his electricity balance in a similar manner as he reports of his other measured trades.

Delivery point of the imported electricity is the Finnish main grid.

Limitations of Imports

Fingrid reserves the right to restrict the transmission service for the needs of securing the management of the Nordic power system as well as in the event of disorders in the grid on the Russian or Finnish side of the border and during other outages affecting the transmission capacity of the connection.

The available transmission capacity from Russia to Finland may be impacted by faults in the power system, maintenance outages as well as by situation in production and transmission in both sides of the border.

The scheduling of the planned outages, such as annual maintenance, related to the cross-border connections is agreed between Fingrid and the relevant Russian party. Fingrid will inform customers duly in advance of possible import limitations associated with this type of planned activities.

In case of fault, outage and in other unexpected circumstances imposing limitation needs, Fingrid will notify customers of the start and ending of the import limitation. While the imports are limited, trade schedules of all customers are adjusted to the available transmission capacity in proportion to the overall limitation made according to the transmission service agreements. The bilateral trade shall be limited firstly and the direct trade secondly. The imports shall be reconfirmed afterwords for the hours under limitation.

Transmission service fees

For the transmission service, the customer pays following fees:

	As of 1 January 2012
Cross-border fee	0.5 €/MWh
Main grid service fee	2.0 €/MWh
ITC/Perimeter fee	0,8 €/MWh*

Link to ENTSO-E's press release concerning the ITC/perimeter fee

* The fees applicable in the EU internal electricity market on the transmission between internal electricity market and the third countries (at present so called ITC/Perimeter fee) levied to the imports from Russia shall be collected as such. These fees are based on EU Regulation No. 838/2010 point 7. The unit price for the year 2011 ITC/Perimeter fee is 0.80 €/MWh. The unit price for the year 2012 shall be modified retrospective, if need, based on the calculation by ENTSO for Electricity. The unit price 0.80 €/MWh shall be applied until ENTSO for Electricity has given the information for 2012.

The service fees above are presented excluding taxes. When the transmission service fees are invoiced the value-added tax and other potential taxes will be added to the transmission service fees. The transmission service fees will be invoiced monthly.

Adjustment of fees

The ITC/perimeter fee directed to the imports from Russia shall be collected as such. Changes which have a direct and essential effect on the costs of the transmission service presented in these service terms and which could not have been taken into account when contracting on the service and which are not compensated on the basis of transmission service fees specified shall be taken into account as factors increasing or reducing the fees in accordance with their respective effects. Such changes include taxes, public charges and obligations due to legislation or other measures by authorities and other changes due to the above causes which concern the transmission service specified in these service terms.

If the European single electricity market introduces general principles or procedures which call for amendments to the service terms or fees concerning national or intra-market transmission service or transmission service between the single market and third countries, Fingrid has the right to take these into account in the transmission service fees specified in these service terms. Such effects may be caused among other things by the compensation of the costs resulting from transit transmissions between the grids and by the harmonisation of the fees concerning input into the grid.

If reasons beyond the control of the contracting parties to the transmission service pertaining to these service terms lead to an evident disparity in the performance of the contractual obligations, the contracting parties shall negotiate on the adjustment of the fees or other terms of contract in order to eliminate the disparity. Such reasons include changes in financial or commercial circumstances, changes taking place in legislation, measures by authorities, or other reasons which could not have reasonably been taken into account when preparing the agreement.

Transmission service agreement

The transmission service and its terms are specified in detail in a transmission service agreement. The agreement can be signed after Fingrid has confirmed to the customer the customer's transmission reservation and the parties involved in the power transaction have made an agreement on import. The operating principles of the cross-border connections agreed between Fingrid and the relevant Russian parties have to be taken into account in the transmission service agreement as well as in the import agreement.

Agreement on the transmission service requires that there exists a valid import agreement between the importer and the seller operating in Russia for the corresponding period as for the transmission agreement. The customer must make sure that the agreement made on the import of electricity is suitable for use with the transmission service agreement made between the customer and Fingrid. Fingrid reserves the right, upon request, to obtain information on the import agreement between the customer and his seller operating in Russia in so far as this information is important in view of the implementation of power transmission. Potential imports of electricity outside the scope of the transmission service agreement are not registered into the customer's electricity balance in the national balance settlement process.

The customer or his seller shall make a separate agreement on electricity transmission on the Russian side of the border.

The following companies are importing electricity from Fingrid Oyj Russian cross-border connections in 2012: