27.7.2023 12:53
Current News, Stock Exchange Releases

Fingrid group’s half-year report 1.1.-30.6.2023

Fingrid’s consolidated financial statements have been drawn up in accordance with the International Financial Reporting Standards (IFRS). This half-year report has been drawn up in accordance with the IAS 34 Interim Financial Reporting standard and complies with the same accounting principles as those presented in the Group’s financial statements for 2022. This half-year report is unaudited. Unless otherwise indicated, the figures in parentheses refer to the same period of the previous year.

Fingrid’s segment reporting changed as of 30 June 2023. No changes have taken place in Fingrid’s operations or organisational structure. The Group’s reporting segments are the main grid segment and the balance services segment. The reasonable return on the company’s operations is still subject to regulatory monitoring, including the two reporting segments. There are no material differences in the risks and profitability of individual products and services, which is why segment reporting in accordance with the IFRS 8 standard has not previously been presented. With the growth in renewable energy and as the power system’s weather dependence increases, new kinds of demands will be placed on the company’s services. Given the changes in the operating environment, the company has decided to expand its reporting to the segments.

The graphs and clarifying texts of the half-year report are available in the attached PDF file.

  • Turnover decreased as a result of the steep drop in the price of imbalance power. Along with the lower price of electricity, operating expenses decreased and Fingrid’s congestion income was substantially lower than the previous year.
  • Grid service fees were waived in January, February and June. This was compensated by recognising EUR 139.0 (46.5) million in congestion income in the company’s result.
  • Profit before taxes, excluding changes in the fair value of derivatives, increased year on year with the increase in the allowed regulatory profit. Losses from the period under review were caused by the negative change in the market value of electricity derivatives hedging loss power procurement.
  • The company’s liquidity has remained strong.
  • Finland’s electricity consumption during the period amounted to 39.9 (42.6) terawatt hours. Fingrid transmitted 35.0 (36.6) terawatt hours of electricity in its grid, representing 81.0 (77.9) per cent of the total transmission volume in Finland (consumption and inter-TSO).
  • Fingrid’s transmission reliability rate in January–June was 99.99991 (99.99999) per cent.
  • New renewable electricity production was connected to the main grid in the amount of 772 (843) megawatts.





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Review by the President & CEO: “Electricity shortage was avoided – modernisation of the power system is in full swing”

The mild weather early in the year caused the price of electricity to fall significantly from year 2022 peaks. In late spring, negative electricity prices, even over 24-hour periods, were seen for the first time in Finland. We returned to the development path we were on before Russia’s war of aggression against Ukraine.

The decline in the electricity price was reflected in a decline in the prices of power system reserves, which was also accelerated by the partial opening of the reserve markets to cross-border competition at the turn of the year. 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, Fingrid’s congestion income fell significantly. We will use the exceptionally high amount of congestion income accumulated in the previous year to waive grid fees for six months in 2023; this, together with the fees waived in December 2022, will reduce main grid customers’ fees by some EUR 300 million. The company’s financial result, excluding changes in the fair values of derivatives, improved year on year.

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. While Olkiluoto 3 contributed during its test runs to the supply of electricity in winter, it was not put into commercial use to reinforce Finland’s power balance until after the winter. The system security of the transmission grid stayed at a high level all winter.

Our energy system is evolving at an incredible pace. Finland has the opportunity to make the green transition a real industrial success story and a source of well-being. 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 15,000 megawatts’ worth of connection enquiries linked to electricity consumption in Finland. 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. The company’s latest ten-year plan for developing the main grid amounts to approximately EUR 4 billion. The increase in main grid investments can be attributed to the continued momentum of the construction of renewable electricity production, the increase in electricity consumption, driven by the industrial green technology projects, and the electrification of society.

For years, Fingrid has focused on strengthening an open and community-oriented corporate culture that encourages development. A healthy and productive work community is the key to the company’s long-term success. Our long-term work has also 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. Based on T-Media’s 2023 Reputation&Trust survey conducted in April, Fingrid’s reputation among its personnel is at an excellent level. Fingrid’s personnel is very committed to implementing the company’s strategy.

Financial result 

The Group’s turnover from January through June was EUR 554.8 (692.2) million. Grid service revenue fell to EUR 83.7 (204.9) million. The reasons behind the decrease were the waiving of grid service fees in January, February and June, and the decrease in electricity consumption in Finland in January–June to 39.9 (42.6) terawatt hours. Turnover from imbalance power sales fell to EUR 343.4 (396.3) million as a result of the steep drop in the price of imbalance power. Imbalance power tariffs were increased in January and decreased in May. Cross-border transmission between Finland and Russia ended on 14 May 2022, which meant there was no cross-border transmission income from that connection during the review period. A total of EUR 94.6 (39.8) million in congestion income was recognised in turnover, and EUR 44.4 (6.7) million in other operating income. Other operating income mainly consisted of the recognition of congestion income and amounted to EUR 45.3 (251.2) million. The decrease in other operating income was mostly due to the decline in the fair value of electricity derivatives related to the business operations.

Costs during January–June totalled EUR 513.0 (619.4) million. With the strong decrease in the price of electricity after the winter, imbalance power procurement costs decreased to EUR 236.5 (395.0) million. The cost of reserves to safeguard the grid’s system security and quality of electricity increased to EUR 71.5 (61.3) million, largely as a result of the growth in the volume of reserves acquired. The net impact of congestion costs, with Finland’s balance surplus transferring from Finland to Sweden and Norway, fell to EUR 5.9 (28.4) million.

The grid’s loss power costs decreased to EUR 34.1 (39.7) million, as a result of the decrease in the price of electricity. At the end of June, approximately 94 (98) per cent of Fingrid’s projected loss power procurement for the remainder of 2023 was, in terms of system price, hedged at an average price of EUR 33.5 (33.1) per megawatt hour. In terms of the Finnish area price difference, 85 (82) per cent of loss power procurement was hedged at an average price of EUR 5.2 (6.7) per megawatt hour.

The grid investment programme is progressing. Capital expenditure increased to EUR 130.7 (122.0) million, and with the completed projects, depreciation during the review period grew to EUR 59.0 (52.4) million. Grid maintenance costs amounted to EUR 8.6 (8.1) million. Personnel costs grew to EUR 21.3 (19.3) million, due to an increase in the number of personnel.

The Group’s operating result was EUR -79.5 (323.6) million. Profit before taxes was EUR -85.0 (299.4) million. The differences from the corresponding period of the previous year are mainly explained by the change in the market value of derivatives (negative change EUR 393.6 million). Operating profit, excluding the change in the fair value of derivatives linked to operational activities, amounted to EUR 87.1 (83.5) million. Operating profit excluding the change in the fair value of derivatives grew from the previous year as the investment programme and the rise in the interest rate level increased the company’s allowed regulatory profit. Profit for the review period was EUR -67.9 (239.4) million and comprehensive income was EUR -68.0 (239.4) million.


The Group’s net cash flow from operations, with net capital expenditure deducted, was EUR -42.2 (349.2) million for the review period. The decrease in cash flow was due to the lower accumulation of congestion income during the review period. Cash flow is reduced by the EUR 99.2 million worth of fixed income investments it includes. The equity ratio was 18.5 (26.5) per cent at the end of the review period. The decline in the equity ratio is attributed to the decrease in equity and the increase in congestion income on the balance sheet. The decrease in equity was due to the negative impact on profit caused by a decline in the market value of electricity derivatives and to the first dividend instalment that was paid in April. Accumulated congestion income is included in the balance sheet as short- and long-term accruals in the item ‘Other liabilities’, increasing the amount of liabilities on the balance sheet and decreasing the equity ratio. The impact of the IFRS 16 standard reduced the share of equity by 0.2 percentage points.

The Group’s net financial costs from January through June were EUR 6.1 million (23.8 million), including a negative change of EUR 11.8 (EUR 20.8 million negative) million in the fair value of derivatives. The change in the fair value of financial assets was EUR 3.1 million positive (EUR 1.1 million negative). The net financial costs included EUR 0.3 (0.3) million in interest expenses on the lease liabilities entered into the balance sheet, in accordance with the IFRS 16 standard.

Interest-bearing borrowings totalled EUR 1,048.9 (1,101.6) million, of which non-current borrowings accounted for EUR 681.6 (1,043.6) million and current borrowings for EUR 367.4 (58.1) million. The growth in current financing is explained by the EUR 300 million bond maturing in April 2024. On the reporting date, the borrowings included a total of EUR 32.5 (31.1) million in lease liabilities in accordance with IFRS 16, consisting of EUR 3.2 (2.7) million in short-term liabilities maturing within one year, and EUR 29.3 million (28.3) in long-term liabilities maturing after more than a year.

The Group’s liquidity remained very good. The Group’s liquidity remained good. Cash assets and financial assets at the end of the review period amounted to EUR 624.8 (424.3) million. Fingrid has actively used its accumulated congestion income for investments, waiving grid service fees and covering operating costs. The accumulation of congestion income was considerably lower than in the previous year. The company’s other long-term investments also include fixed income investments totalling EUR 70.9 (0.0) million euros. The Group has an undrawn committed revolving credit facility of EUR 300 million and a total of EUR 90 million in uncommitted financing arrangements with banks to secure liquidity.


The strong growth in weather-dependent renewable energy production as well as regional concentrations are changing the operations of the power system and the conditions for managing it. In spring, 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. The vision entails preparing for an increase in electricity production and consumption and creating preparedness to develop the main grid and electricity system for the long term. This development requires several changes, new solutions and even closer co-operation with all electricity consumers and producers. Fingrid works in close cooperation with the electricity market operators to find solutions that can guarantee a high quality and availability of electricity also in the future as the production and consumption of renewable electricity grows strongly.

The volume of electricity production connection enquiries grew significantly since the corresponding period last year, and their total capacity currently amounts to 280 GW. The majority of the enquiries, approx. 160 GW, concern onshore wind energy, but connection enquiries for offshore wind energy and solar power plants are also growing. In the first half of 2023, new renewable production in the amount of 772 MW (843 MW) was connected to the power network.

The increased production of clean energy and reliable electricity transmission have had a significant impact on industrial consumer demand, the connection enquiries for which is roughly 15 GW.  In various parts of Finland, numerous projects related to clean electricity consumption are under planning and under way in the hydrogen industry, in data centres, and in the heating sector and the metals industry, and important new investment plans were unveiled this past spring. According to a press release by the Confederation of Finnish Industries, over EUR 85 billion in green investments are planned for Finland, and these projects require clean energy in order to be carried out. Fingrid plays a key role in enabling this development.

Fingrid’s task is to develop and maintain a stable electricity system. This is ensured through a strong main grid and through its efficient operation, as well as through close co-operation with various electricity market operators. Today, there are numerous opportunities to connect electricity production and consumption to the main grid throughout Finland. A new version of Fingrid’s Grid Scope map service, which provides a snapshot of the main’s grid’s connectivity status, was released in May. The new version shows the connection capacity for both electricity production and consumption in different parts of Finland. Grid Scope gives a clear picture of the connection possibilities, which supports development plans for electricity production and consumption and enables the efficient and balanced utilisation of the main grid, while taking regional differences into account.  

A vast amount of wind power production is concentrated on Finland’s west coast, which is currently challenging the network’s stability during planned transmission outages related to maintenance and building the electricity network. New wind turbine connections on the west coast have been temporarily restricted. In co-operation with customers, solutions have been found for lowering the restrictions on the production volumes of wind power parks during planned transmission outages until investments to strengthen the main grid are completed in the region.  

Fingrid’s Open Data online service is being further developed, and the latest version was released to electricity market operators in June. The objective of the service is to share real-time data on the electricity system in digital format and free of charge, and thereby increase transparency, enable the development of new services and promote the electricity market’s efficient operation.

Customers are at the centre of Fingrid’s activities. Customers trust Fingrid and strongly support the company’s activities. In May–June 2023, the research company T-Media asked Fingrid’s customers to rate the company’s activities. In the survey, the score for stakeholder support had risen since two years prior and is now 4.26/5 (4.07/5). Fingrid also has an excellent reputation among its customers: the company’s reputation score was 4.15/5 (4.04/5).

Main grid investments

In the main grid development plan, which was updated in June, the estimated amount of main grid investments over the next ten years (2024–2033) is EUR 4 billion. The increase in main grid investments is attributed to industrial investments in Finland to utilise clean energy and to the electrification of society, both of which require an increase in emission-free electricity generation and high electricity transmission reliability.

The development plan will enable clean electricity production and consumption growth, as well as the achievement of climate targets in Finland. The plan also pays special attention to ensuring that the main grid is developed sustainably. The plans include 6,100 km of new transmission lines and 128 substation projects, and different alternatives for their implementation are being looked into, taking into account their impacts on nature and the environment. For example, 40 per cent of the new transmission lines will be built in existing right-of-ways.  

Today, the main grid comprises some 14,500 kilometres of transmission lines and 124 substations. A total of 374 kilometres of transmission lines and 68 new substations are under construction.

Cross-border connections reinforce European energy market integrations and improve transmission reliability. Construction of the 400 kilovolt Aurora Line to reinforce the Finland–Sweden cross-border connection is progressing on schedule. The Aurora Line will be completed in full in 2025. 

Several 110 kilovolt transmission lines are under construction. The work to renew both the 100-kilometer-long Hämeenlahti–Kauppila–Hännilä transmission line that runs between Hämeenlahti in Jyväskylä and Hännilä in Joroinen and the Siikajoki–Sorsaraivio section of line are underway, and a new transmission line connection between the Isokangas substation in Ii and the Leväsuo substation in Oulu is under construction. The Isohaara and Arkkukallio–Furubacka 110 kilovolt transmission line modifications that are part of substation projects are also under way.

Tendering for construction work on the 289-kilometre-long, 400-kilovolt transmission line connection from Vaala to Joroinen, which is to be built primarily in conjunction with the current Lake Line transmission line, is under way. Reinforcing the Lake Line will increase electricity transmission capacity from north to south and enable the connection of renewable energy, as well as industrial investments, to the main grid in eastern Finland. Also currently in a tendering process is a 400 and 110 kilovolt transmission line connection from Huittinen to Forssa, which will enabling the growing volume of the west coast’s surplus production to be transmitted to southern Finland.

Currently under general planning are 470 kilometres of 400 kilovolt and 10 kilometres of 110 kilovolt transmission lines. Fingrid is planning an approximately 210-kilometre-long 400 kilovolt transmission connection between Petäjäskoski in Rovaniemi and Nuojuankangas in Vaala, and a roughly 270-kilometre-long transmission connection between Alajärvi and Hikiä in Hausjärvi to strengthen the transmission capacity. In addition, general planning on the construction of an approximately 165–185-kilometre-long connection between Kalajoki (Jylkkä) and Alajärvi will begin in the summer.

Substations play a key role in managing electricity transmission, transmission reliability and the state of the electricity network. Customers connect to the main grid through them. Construction work on, among others, the Hepokorpi substation in the capital region has started and is progressing as planned. The Hepokorpi substation is a fine example of a multi-operator joint project, which guarantees reliable electricity supply for the area, enables growth in industrial electricity consumption and produces clean district heating from a data centre’s waste heat.  

During the reporting period, Fingrid made investment decisions on the Siikajoki–Sorsaraivio section and on replacing the Nurmijärvi–Lautala transmission line, as well as on expanding the 110 kilovolt substations in Vanaja, Naantalinsalmi, Uusnivala and Anttila. Investment decisions were also made concerning the construction of substations in Harjavalta, Kolsi, Kissakuja, Honkajoki, Böle and Sorsasalo.

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.

Occupational safety on Fingrid’s transmission line and substation worksites was at a good level. The 12-month accident frequency (LTIF) at Fingrid’s transmission lines and substations was 6.18, whereas the target for 2023 was less than 5. 

Power system operations

Finland’s electricity consumption in January–June amounted to 39.9 (42.6) terawatt hours. Inter-TSO transmission in the same period amounted to 3.3 (4.3) terawatt hours. The total electricity transmission in Finland was 43.2 (46.9) terawatt hours. Over the same period, Fingrid transmitted a total of 35.0 (36.6) terawatt hours of electricity in its grid, representing 81.0 (77.9) per cent of the total electricity transmission in Finland. During this period, the electricity Fingrid transmitted to its customers amounted to 30.3 (32.2) terawatt hours, which represented 75.9 (75.5) per cent of Finland’s total electricity consumption.

Last winter’s electricity consumption peak was reached on the cold morning of 9 March 2023, between 8 and 9 am, when consumption peaked at 12,192 megawatts. That figure is far below the all-time record consumption peak of 15,105 megawatts reached in winter 2016. Electricity generated in Finland accounted for 11,240 of the total consumption, and the remaining share was imported from Sweden. The electricity supply was not in jeopardy during the peak consumption hour.

In January–June, the system security of Fingrid’s grid system was at a very good level and there were no grid disturbances. The grid’s transmission reliability rate during the review period was 99.99991 (99.99999) per cent. Fingrid is prepared for the impacts of extreme weather phenomena on the power system. There was no need to raise the disturbance-clearing readiness during the review period.

From January through June, 5.3 (7.8) terawatt hours of electricity were imported from Sweden to Finland, and 1.4 (0.8) terawatt hours were exported from Finland to Sweden. Transmission capacity between the countries was reliable, but it was limited from 19 April to 9 May during the review period due to repair work on the Fenno-Skan 2 cable.

Electricity exports to Estonia in January–June were high, as in the previous year, totalling 3.3 (3.6) terawatt hours. Very small amounts of electricity were imported from Estonia to Finland during the review period. The transmission capacity between the two countries functioned reliably, and annual maintenance on EstLink 1 and EstLink 2 was carried out as planned. Fingrid expended EUR 0.2 (2.1) million in countertrade during the first half of 2023.

As part of preparing for the transformation in the structure of electricity production, Fingrid participated in a study on the adequacy of electricity and the security of the energy supply in Finland in the second half of the 2020s. The solutions identified in the study, conducted in co-operation with the consulting firm Afry, were published in June for stakeholder consultation. The goal is to increase dialogue between electricity market operators and authorities and identify appropriate operating methods and cost-effective models in order to prevent and find solutions to possible future challenges related to electricity adequacy. 

Electricity market

The mild weather early in the year and the effective electricity savings measures significantly lowered the electricity market prices compared to the latter half of the previous year. During late spring’s flood season, negative electricity prices were seen in Finland, even over 24-hour periods. Besides the hydrological situation, the low prices can also be attributed to Olkiluoto 3’s contribution of nuclear power and to weather conditions that were favourable for wind power production.

There has been a high level of electricity imports, particularly from northern Sweden to Finland, often reaching the maximum level during daytime, but since the startup of Olkiluoto 3, electricity has also been exported from Finland to northern Sweden, particularly during nighttime. Electricity exports from Finland to Estonia were high. In January-June, the average Nordic price on the day-ahead market was EUR 70.42 (115.62) per megawatt hour, and the area price for Finland was EUR 60.36 (104.73) per megawatt hour.

The usability and reliability of transmission connections between Finland and Sweden and Finland and Estonia were at a good level during the reporting period. Electricity area price differences between the countries have levelled out compared to the corresponding period last year, and congestion income along Finland’s cross-border connections has decreased. The price difference between Finland and Estonia increased in May–June due to, among other things, maintenance work on EstLink 2. Congestion income between Finland and Sweden in January–June totalled EUR 100.5 (479.8) million. Congestion income between Finland and Estonia in January–June amounted to EUR 104.7 (145.9) million. Fingrid’s share of the congestion income from those cross-border connections is 50 per cent.

In December 2022, Fingrid and the Estonian TSO Elering adopted financial transmission rights (FTR) instruments for the Finland–Estonia border, allowing electricity market operators to reserve transmission capacity and thus support the operations of the wholesale electricity markets. The instruments have worked as planned, and the maximum amount of transmission rights have been granted to electricity market operators during the review period.

As the production of renewable electricity grows, the importance of reserves maintaining the power system’s operations also increases. The volume of reserves acquired by Fingrid is growing and creating new opportunities for different electricity market operators. Reserve costs decreased during the review period. Variations in the price of balancing power, down-regulating power in particular, grew considerably in spring. Significantly more negative down-regulating power prices were seen in spring than has previously been seen. This has affected the imbalance price, which is formed on the basis of the balancing price.

Fingrid raised the balance responsible parties’ imbalance power tariffs to €1.7/MWh in January and decreased the tariffs back to €1.2/MWh in May. The increase and decrease in the tariffs followed the development of the balance service costs, particularly cost of acquired power system reserves. In balancing the national power balance, Fingrid assumes a financial risk of the balance responsible parties. The balance responsible parties are required to provide collateral against this risk. As part of the public consultations initiated by the Energy Authority, Fingrid at the end of May submitted an updated version of the principles for determining the collateral to be provided by the balance responsible parties for the Energy Authority’s approval.

Early in the year, the European Commission arranged a public hearing on the reform of the electricity market, to which the European transmission system operators issued a joint response. The Nordic TSOs also released a joint statement, which was submitted to the hearing. The joint statement highlighted a commitment to safeguarding the central features of the current electricity market design, such as marginal pricing. In the proposal issued by the Commission in March, no major changes to the market design were proposed. The Commission’s proposals concern, in particular, increasing demand response, strengthening investment signals, and the position of consumers on the retail markets.

To ensure efficient grid operation and system security, the Nordic TSOs have developed a new flow-based transmission capacity calculation method. The method takes into account the impact of production and consumption on the transmission grid and optimises the operation of the grid and power system. Testing of a similar transmission capacity calculation method already in use in continental Europe started in the Nordic countries alongside the current capacity calculation method in March 2022 and is ongoing. The new methodology will be adopted at the earliest in the first quarter of 2024.

The reserve markets are expanding into Europe. Fingrid is preparing to join the European Automatic Frequency Restoration Reserve (aFRR) marketplace in summer 2024. With the introduction of a European marketplace, the aFRR capacity markets will also be joined by the aFRR energy markets.

Reliability and transparency are important for promoting the functionality of the markets and the trust of market operators and end consumers. The market surveillance of the balancing power markets received a boost in June, when Fingrid and Nord Pool agreed on expanding the implementation of the market surveillance of the Manual Frequency Reserve (mFRR), i.e. the balancing markets. Under the arrangement, Nord Pool’s market surveillance department regularly monitors these markets and reports possible violations to Fingrid. Responsibility for market surveillance and its implementation on the balancing power markets and on other reserve markets lies with Fingrid.

Finland switched to a 15-minute imbalance settlement period on 22 May 2023. The transition went according to plan, and the systems of both the imbalance settlement company eSett and Fingrid’s Datahub, which provides data exchange services for the electricity retail market, now operate in 15-minute periods. The adoption of a 15-minute imbalance settlement period is the first step towards 15-minute trading. It is possible to trade in 15-minute products on the intraday markets within Finland.


The Group’s total headcount has increased as a result of the expansion of Fingrid’s operations and preparations for the growth of the power system. The number of employees averaged 514 (472), with an average of 460 (417) in a permanent employment relationship. Personnel costs amounted to EUR 21.3 (19.3) million. Wages and salaries amounted to EUR 17.9 (16.3) million, which equals 3.2 (2.3) per cent of the turnover.

Fingrid’s long-term efforts to promote a transparent and inspiring corporate culture was reflected in the results of the 2023 personnel surveys. In spring, Fingrid was the winner in Finland’s Most Inspiring Workplaces competition’s mid-sized companies category. The selection was based on the results of the PeoplePower personnel survey, in which Fingrid’s strengths were cited as workplace atmosphere, commitment and trust in the employer. Based on T-Media’s 2023 Reputation&Trust survey conducted in April, Fingrid’s reputation among the personnel is at an excellent level. The reputation score given by personnel was 4.40/5, and stakeholder support received a very strong score of 4.57/5. Personnel cited areas related to the workplace and responsible operations as major strengths. 

This year, Fingrid is employing altogether 46 employees in various summer jobs throughout Finland. As in previous years, the company is part of the Responsible Summer Job campaign, which challenges employers to offer young people successful summer job experiences of good quality.

Legal proceedings and proceedings by authorities

Teollisuuden Voima Oyj (“TVO”) 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 Energy Authority’s resolution on the matter is expected in autumn.

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.

Other matters

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 and Jukka Reijonen were re-elected as members of the Board of Directors. Jero Ahola, Anne Jalkala and Leena Mörttinen were elected as new members of the Board of Directors. Hannu Linna was elected Chairman and Leena Mörttinen Vice Chairman of the Board of Directors.

On 2 March 2023, Fingrid Oyj’s President & CEO, Jukka Ruusunen (D.Sc. Tech.), announced that he will retire on 31 December 2023. The company’s Board of Directors elected the current Deputy CEO Asta Sihvonen-Punkka, who has been with the company since 2016, as Fingrid Oyj’s new President & CEO as of 1 January 2024. Asta Sihvonen-Punkka was also appointed Vice President of the European Network of Transmission System Operators for Electricity (ENTSO-E) for the term 1 July 2023 to 30 June 2025.

Events after the review period and outlook for the rest of the year

On 27 July 2023, the Board of Directors decided, in compliance with the authorisation granted by the AGM, that the second instalment of dividends shall be paid after the half-year report has been approved and the Board has assessed the company’s solvency, financial position and financial performance. Based on the authorisation granted to the Board in the Annual General Meeting, the second instalment of EUR 17,500.00 per share for Series A shares and EUR 6,400.00 per share for Series B shares, totalling EUR 44,345,800.00 in dividends, will be paid on 1 August 2023.

The strong growth in renewable energy production as well as regional concentrations and the implementation of a major investment programme are affecting the operations of the power system. Fluctuations in the price of energy and large transmission volumes in the main grid increase uncertainty in the company’s major market-based cost items. Area price differences at the borders between Finland and Sweden and Finland and Estonia increase Fingrid’s share of congestion income during the financial period. Fingrid will actively use congestion income to benefit its customers also in the future. The company has announced that it will waive grid service fees for July, November and December 2023.

The company’s debt service capacity is expected to remain stable. 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 40 593 8428

Jukka Metsälä, CFO, Fingrid Oyj, tel. +358 40 563 3756