Letter of intent paves the way for Energinet and Denmark to join the common Nordic imbalance settlement

On Tuesday, 26 June, a letter of intent was signed between the Danish transmission system operator (TSO) Energinet and eSett’s current owners Svenska kraftnät, Fingrid and Statnett. The letter of intent declares Energinet’s intention to enter into the joint Nordic imbalance settlement co-operation and become a shareholder in eSett Oy, the company that manages the Nordic imbalance settlement.

Nowadays, the ownership of eSett Oy is shared between the Nordic system operators Svenska kraftnät, Fingrid and Statnett, each of which own one third of the share capital. According to the letter of intent, Energinet would become a shareholder as of January 1, 2019. The share capital would then be divided equally between the four shareholders, with each party holding 25 per cent. Through the letter of intent, the parties agree that Energinet will join the Nordic imbalance settlement, as well as how the work to implement the connection of the Danish market and the details of the joint ownership will be organised.

“We warmly welcome Energinet and Denmark to join the common Nordic imbalance settlement co-operation. This is an important step that we have looked forward to, and it contributes to the further integration and development of the Nordic electricity market,” said Fingrid's CEO Jukka Ruusunen, after signing the letter of intent.

"We have a positive and constructive cooperation, and we will now work with the three other Nordic TSOs towards a good solution for all parties," says Thomas Egebo, CEO at Energinet.

Background of the Nordic imbalance service

In 2013, Svenska kraftnät, Fingrid and Statnett formed the company eSett Oy with the aim of establishing a joint imbalance settlement for Sweden, Finland and Norway. The company is headquartered in Helsinki, Finland. In 2017, eSett Oy took over the operational responsibility for the imbalance settlement and invoicing of the market participants in Finland, Norway and Sweden with the commissioning of the Nordic imbalance settlement model. The Managing Director of eSett Oy is Minnakaisa Ahonen. In 2017, the company’s turnover amounted to EUR 8 million.

Further information:

Asta Sihvonen-Punkka, Senior Vice President, Markets, Fingrid, tel. +358 50 573 9053