30.4.2014 15:00
Current News

Energiakolmio to serve as Fingrid's portfolio manager for loss energy

Fingrid and Energiakolmio have signed a three-year agreement on portfolio management for Fingrid's loss energy. The agreement also includes an option for two additional years. The objective is to hedge against electricity price fluctuations as well as possible, thus safeguarding the stable price of the grid service.
Energiakolmio was selected as Fingrid's portfolio manager as a result of an international competitive bidding. The service provider is independently responsible for hedging measures and their timing in accordance with the given strategy and risk policy framework.
Fingrid's objective is to hedge itself against sudden changes in market prices and hence secure an even and predictable grid tariff. The service provided by Energiakolmio also covers trading in the emission rights of Fingrid's reserve power plants, portfolio management reporting and transaction reporting according to the EMIR regulation. Fingrid continues to make the purchase of physical electricity itself by buying electricity in the electricity exchange.
The losses in the Finnish main grid total just over 1 terawatt hour per year, which accounts for about 1.5 per cent of all electricity consumption in Finland.  Procurement costs total approximately €60 million per year. Loss energy purchases are hedged in full in advance by spreading the hedging over several years.
"Having the Finnish transmission system operator Fingrid as our client and the trust they show in our expertise is a sign that we have managed to develop our services in a determined and competitive way without compromising on quality," says Energiakolmio Portfolio Services Oy's Managing Director Janne Laine.
Fingrid's portfolio management for loss energy and price hedging are jointly taken care of by Energiakolmio and its sister company Energiakolmio Portfolio Services, which was granted a MiFID licence in spring 2014. The Group's turnover in 2013 was approximately €40 million, and it employs a total of 90 experts.
Further information:
Juha Hiekkala, Development Manager, Fingrid Oyj, tel. +358 30 395 5108
Mika Petsalo, Specialist, Fingrid Oyj, tel. +358 30 395 4165
Janne Laine, Managing Director, Energiakolmio Portfolio Services Oy, tel. +358 40 838 0679