20.7.2022 14:14
Current News, Electricity Market

Balance service fees for balance responsible parties to rise on 1 September 2022

Fingrid will increase the balance service fees for balance responsible parties from 1 September 2022. The increase is due to a significant rise in the cost of the electricity system’s market-based reserves as a result of the exceptional market situation.

As of 1 September 2022, the volume fee for production and consumption by balance responsible parties will rise to EUR 1.2/MWh (the current fee is EUR 0.64/MWh). Other balance service fees will remain unchanged.

Since May, the costs of the market-based reserves that balance production and consumption within the electricity system have increased manyfold on the cost level compared earlier in the year. This increase has been due to the cessation of Russian electricity imports, the high price of electricity and the prevailing conditions in the electricity market. Both the price of the necessary reserves and the quantity to be acquired on the national market have increased. Most of the cost increase has occurred in the acquisition of Automatic Frequency Restoration Reserves (aFRR, see the diagram). The procurement costs of the aforementioned reserves are covered by the volume fees for production and consumption by balance responsible parties.

Procurement of Automatic Frequency Restoration Reserve

Link to reserve procurement reports: Automatic Frequency Restoration Reserve (aFRR), realised hourly transactions >

Changes in electricity market conditions will lead to greater uncertainty in balance service costs. The balance service fees will be valid until further notice. Both balance service fees and balance service costs are continuously monitored, and fees will be revised to cover operating costs.

Further information:

Jani Piipponen, Manager, balance services, Fingrid, tel. +358 (0)30 395 4186 (more easily reachable from 11 August)

Email addresses are in the form firstname.lastname@fingrid.fi

See also:

Prices per megawatt-hour can be converted into prices per kilowatt-hour using the following formula: EUR 1.20/MWh = EUR 0.00120/kWh = 0.120 cents/kWh