Fingrid has submitted its proposal regarding hedging opportunities between Finnish and Swedish bidding zone borders to the Finnish NRA

Fingrid has submitted its proposal to Energy Authority regarding hedging opportunities between Finnish and Swedish bidding zone borders on 22.12.2023. Fingrid commits to investments and other actions that support the functioning of the physical and financial electricity markets. As new hedging products are entering Finland and the other Nordic countries voluntarily in market-based manner, Fingrid does not propose direct subsidies for individual hedging products as recommended in ACER's decision.

In autumn 2022, the EU Agency for the Cooperation of Energy Regulators (ACER) obliged the transmission system operators in Finland and Sweden to develop necessary arrangements for introduction of other measures besides long-term transmission rights to support the functioning of wholesale electricity markets and to improve hedging opportunities between Finland and Sweden (ACER Decision no. 12/2022). Fingrid appealed against ACER’s decision to ACER's Board of Appeal in November 2022, and the Board issued its decision on 24 October 2023. The Board of Appeal upheld ACER's original decision in the case.

Fingrid has submitted to the Energy Authority the requested proposal for improving hedging opportunities between Finland and Sweden on 22.12.2023. The solution proposed by Fingrid is based on cross-border transmission investments and internal grid investments in Finland, which promote the functioning of both physical and financial electricity markets. Fingrid does not propose direct subsidies to individual financial products as recommended in ACER's decision, because new hedging products are entering Finland and the other Nordic countries on market terms. This changes significantly the competitive environment in the financial electricity market in the Nordics. Moreover, the asymmetry of production and consumption, which was identified as one root cause for challenges in the Finnish financial electricity market in ACER’s decision, has been remedied by the end of 2023 with new production investments.

Fingrid’s proposal and background material attached

For further information contact:

Asta Sihvonen-Punkka, Fingrid Oyj, asta.sihvonen-punkka[at]fingrid.fi, tel. +358 50 573 9053
Antti Raininko, Fingrid Oyj, antti.raininko[at]fingrid.fi, tel. +358 40 829 0492
Satu Viljainen, Fingrid Oyj, satu.viljainen[at]fingrid.fi, tel. +358 40 707 1511

Fingrid’s proposal and background material:

FCA proposal 30_6 article_final 22_12_2023

Explanatory document - FCA art 30_6 proposal

Updated 15.1.2024