26.4.2023 11:08
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Fingrid Group – Management's Review 1.1.−31.3.2023

The information presented in the Management’s Review relates to Fingrid Group’s performance in January– March 2023 and the corresponding period of 2022.

Fingrid follows a six-month reporting period as referred to in the Securities Markets Act and publishes Management Reviews for the first three and nine months of the year; the Management Reviews contain key information illustrating the company’s financial and other development.

The information presented in the Management’s Review relates to Fingrid Group’s performance in January– March 2023 and the corresponding period of 2022, unless otherwise indicated. The figures presented here have been drawn up in accordance with the International Financial Reporting Standards (IFRS). The Management’s Review is not an interim report in accordance with the IAS 34 standard. The figures are unaudited.

  • Turnover for January–March was slightly higher than in the previous year. The mild winter and lower electricity prices reduced operating expenses. Profit before taxes was EUR -80.4 (63.1) million. Losses from the period under review were caused by the negative change in the market value of electricity derivatives hedging loss power procurement.
  • We waived grid service fees in January and February. This was compensated in the company’s result with a congestion income allocation.
  • The congestion in electricity transmission and area price differences in the Nordic countries were significantly lower than in the previous year. Congestion income was EUR 71.1 (166.6) million.
  • The company’s investment programme is proceeding as planned and investments were higher than in the previous year. Fingrid’s liquidity remained strong.


Review by the President & CEO: “Out of the crisis and sights set on modernising the power system”

In terms of the availability of electricity, the past winter was successful, thanks to the mild and windy weather and the outstanding electricity-saving efforts of Finns. The mildness of the winter is clearly illustrated by the fact that Finland’s electricity consumption peaked as late as the ninth of March, when peak hour consumption reached an average of 12,192 megawatts. This is far below the record level of 15,105 megawatts, which was reached during the freezing cold temperatures of January 2016. We were prepared for much worse, but thankfully the worst did not happen. The system security of the transmission grid stayed at a high level all winter.

The significant increase in electricity prices that began in the previous year in Europe led to spirited debate on the functioning of the electricity markets. However, the market mechanism worked just as it was intended to: rising production costs increased the commodity price as well. In the Commission’s change proposals for the electricity markets, marginal pricing remains at the core of functioning markets. The electricity market ground rules created at the European level offered the stability that investors are looking for, despite the crisis: the European market rules are not exposed to national risks related to the politics of the day.

The mild weather meant that the price of electricity fell significantly from last year’s peaks. The decline in the electricity price was also reflected in a decline in the prices of power system reserves, which was considerably accelerated by the partial opening of the reserve markets to cross-border competition. This was a concrete step in the transformation of national reserve markets to Europe-wide reserve markets. Thanks to the cooling down of the electricity markets, congestion income received by Fingrid fell significantly. As announced previously, we waived grid service fees in January and February. This was compensated in the company’s result with the record-high congestion income that accumulated in the previous year.

Finland has the opportunity to make the green transition a success story and a source of well-being. Our energy system is evolving at an incredible pace. The electricity consumed in Finland comes with consistently lower emissions. In the electricity system vision we released in March, we are preparing for significant growth in the consumption and production of electricity. Production connection enquiries received by Fingrid continue to grow: alongside onshore wind energy, also solar and offshore wind energy investments are taking off. The increase in production attracts electricity consumption and foreign investors. We have already received 12,000 megawatts’ worth of connection enquiries linked to electricity consumption. Reliable electricity networks are one of the most important national competitive factors in industrial projects involving the green transition. Fingrid’s investment programme is moving ahead as planned and we have around one hundred grid investment projects at different stages of completion under way.

For years, Fingrid has focused on strengthening an open and community-oriented corporate culture that encourages development. Our long-term work has received recognition outside the company. A year ago we came in third in the Great Place to Work large companies category, followed up by this year’s win in Finland’s Most Inspiring Workplaces competition’s mid-sized companies category.Key figures





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* Operating profit excluding the change in the fair value of derivatives

** Profit before taxes excluding the change in the fair value of derivatives

*** Net cash flow from operations, after capital expenditure


  • Operating profit, excluding the change in the fair value of derivatives linked to operational activities, amounted to EUR 70.9 (61.9) million. Operating profit excluding the change in the fair value of derivatives grew from the previous year due to higher balance service income.
  • Congestion income from cross-border transmission connections amounted to EUR 71.1 (166.6) million. Congestion income that includes income from financial transmission rights (FTR) at the Finnish and Estonian border came to altogether EUR 82.6 million, of which Fingrid’s share was EUR 67.0 (166.6) million. A total of EUR 67.9 (0.0) million in congestion income was recognised in turnover to cover the waiving of grid service fees, and EUR 20.5 (0.0) million in other operating income to cover operating expenses. Going forward, Fingrid will use congestion income to finance investments increasing cross-border transmission capacity and recognise them in turnover and other operating income to the benefit of its customers.
  • Net cash flow from operating activities fell largely due to lower congestion income. The company’s liquidity remained high.


Main business events 

  • Fingrid’s transmission reliability rate in January– March was 100 per cent. There were no grid disturbances impacting the markets.
  • The weather was mild in the first few months of the year. Finns continued to save electricity and in January– March, electricity consumption in Finland totalled 22.2 (23.5) terawatt hours. In the same period, Fingrid transmitted a total of 18.3 (20.0) terawatt hours in its grid, representing 76.2 (77.1) per cent of the total electricity transmission in Finland. During this period, the electricity Fingrid transmitted to its customers amounted to 16.1 (17.5) terawatt hours, which represents 72.6 (74.5) per cent of Finland’s total consumption. Imports of electricity from Estonia to Finland occurred on 1% of all hours of the period and net exports to Sweden on 8% of all hours.
  • Peak electricity consumption during the 2022–2023 winter season was reached on 9 March 2023, when consumption amounted to 12,192 megawatts between 8 and 9 a.m. Some 1,351 megawatts of electricity were imported from Sweden and 470 megawatts were exported to Estonia. The area price of wholesale electricity in Finland was EUR 158.09 per megawatt hour between 8 and 9 a.m. 
  • Fingrid had 65 substation projects and approximately 230 kilometres of transmission line projects underway. Fingrid made investment decisions concerning altogether four new 110 kV substations in Böle, and in Harjavalta, Kolsi and Kissankuja in Satakunta. Additionally, a decision was made to modernise the Siikajoki–Sorsaraivio transmission line section, expand the Vanaja 110 kV substation and Naantalinsalmi 110 kV substation, and replace a 110 kV transmission line in Nurmijärvi.
  • The number of occupational accidents fell at Fingrid’s transmission line and substation worksites. The accident frequency over a 12-month period was 4.96, with the milestone for 2023 set at below
  • Fingrid achieved an excellent result in the International Transmission Operations and Maintenance Study (ITOMS), which assesses the efficiency and quality of electricity transmission system operators. The system security of Fingrid’s main grid was, once again, of the highest grade and its maintenance costs have been lower than the average. Fingrid received a Top Performer mention for its substation maintenance.
  • Fingrid published an electricity system vision describing the electricity system’s change phenomena and Finland’s growth opportunities in clean energy production and industrial electricity consumption. Fingrid is preparing for significant growth in electricity consumption and production and creating preparedness to develop the grid’s main transmission grid in the long term.
  • The balance service tariffs of balance responsible parties rose as of 1 January 2023 to EUR 1.7 per megawatt hour. Fingrid announced that balance service tariffs would fall as of 1 May 2023 to EUR 1.2 per megawatt hour. The reasons for the price changes are changes in the power system’s reserve costs and the electricity market situation.
  • Fingrid won in Finland’s Most Inspiring Workplaces competition’s mid-sized companies category. The selection was based on the results of the PeoplePower personnel survey.
  • On 2 March 2023, Fingrid Oyj’s President and CEO, Jukka Ruusunen (D.Sc. Tech.), announced his retirement on 31 December 2023.
  • On 31 March 2023, Fingrid Oyj’s Annual General Meeting approved the financial statements for 2022 and decided on the dividend payment. The first instalment of the dividend, totalling EUR 88,691,600.00, was paid on 5 April 2023. Hannu Linna was re-elected as Chair of the Board of Directors, and Leena Mörttinen, who was elected as a new member, was elected as Deputy Chair. Jukka Reijonen was re-elected to the Board and Jero Ahola and Anne Jalkanen were elected as new members.


Legal proceedings and proceedings by authorities 

Teollisuuden Voima Oyj (“TVO”) has lodged a request for an investigation with the Energy Authority on 25 May 2022 related to the claims by TVO that Fingrid has neglected its obligation to develop the main grid as stated in the Finnish Electricity Market Act and/or other applicable legislation, and that, as a result, it has placed unlawful restrictions on connecting the Olkiluoto 3 nuclear power plant to the grid, and that Fingrid is in breach of its administrative obligations linked to carrying out its public administrative task. Fingrid’s view is that the claims made by TVO are unfounded. Fingrid lodged a statement of defence with the Energy Authority concerning the claims made by TVO in its request for an investigation.

The EU Agency for the Cooperation of Energy Regulators (ACER), on 14 September 2022, made a decision on long-term price risk hedging opportunities between Finland and Sweden. In its decision, ACER requested that the Finnish and Swedish TSOs ensure the availability of other long-term cross-zonal hedging products and develop the necessary arrangements for providing hedging products. Fingrid, on 14 November 2022, filed an appeal against the decision to ACER’s Board of Appeal.

The company has not changed its earnings guidance from what is stated in the Financial Statements Bulletin of 2 March 2023.

Further information:

Jukka Ruusunen, President & CEO, Fingrid Oyj, tel. +358 30 395 5140 or +358 40 593 8428

Jukka Metsälä, Chief Financial Officer, Fingrid Oyj, tel. +358 30 395 5213 or +358 40 563 3756

Fingrid is Finland’s transmission system operator. We secure reliable electricity for our customers and society, and shape the clean, market-oriented power system of the future.


Fingrid delivers. Responsibly.