30.3.2022 12:27
Current News, Electricity Market

Balance service fees of balance responsible parties to rise on 1 May 2022

Fingrid will increase the balance service fees for balance responsible parties from 1 May 2022. The main reasons for the increase are a rise in the costs of market-based reserves and imbalance costs that are higher than forecast due to the abnormal electricity market situation and geopolitical circumstances.

The volume fee for generation and consumption by balance responsible parties will change as of 1 May 2022 to EUR 0.64/MWh (the current fee is EUR 0.41/MWh). The increase is approximately 56 per cent. Other balance service fees will remain unchanged.

In the prevailing geopolitical climate, and due to the situation in the electricity market, the costs of balance services since the start of the year have been substantially higher than forecast, and this situation is expected to continue. The main background factors are greater differences between area prices and regulating power prices, combined with the surpluses of balance responsible parties between Finland and the other Nordic countries and the costs thereby arising, as well as higher costs due to the geopolitical situation of market-based reserves, which balance generation and consumption in the power system. Balance responsible parties are urged to improve in maintaining their balances optimally.

Changes in market conditions will occur more frequently as the energy revolution progresses, resulting in significant fluctuations in costs. Fingrid reviews the balance service fees quarterly to ensure that the costs of balance services correspond more closely to the fees charged for them.

Further information:

Jani Piipponen, Manager, balance services, Fingrid, tel. +358 30 395 4186
E-mail addresses: forename.surname@fingrid.fi

Prices per megawatt-hour can be converted into prices per kilowatt-hour by the following formula: EUR 0.01/MWh = EUR 0.00001/kWh = 0.001 cents/kWh