30.1.2024 15:20
Current News, Electricity Market

Balance service fees for balance responsible parties to decrease on 1 March 2024

Fingrid will lower the balance service fees for balance responsible parties from 1 March 2024. The decrease is due to lower costs of power system reserves.

As of 1 March 2024, the volume fee for production and consumption charged to balance responsible parties will decrease to EUR 1.33 per megawatt-hour. Fingrid is able to reduce the fee thanks to lower reserve costs, which are covered using balance service fees. Other balance service fees will remain unchanged. The current volume fee is EUR 1.5 per megawatt-hour.

Fingrid is responsible for managing the balance between electricity consumption and production in Finland. The balance service handles this responsibility. Balance service fees cover the implementation of the national balance service and imbalance power trading, the development of the balance service’s systems and processes, and the costs of power system reserves. Purchases and sales of imbalance power for managing imbalances are priced according to energy volumes.

Power system reserves keep the power system’s frequency and electricity quality at the desired level. Fingrid uses these reserves to balance the power system. It purchases reserves in various reserve marketplaces in Finland and other Nordic countries.

Changes in the electricity market, fluctuations in the market prices of reserves, and the need to acquire growing volumes of reserves to cater for the energy transition increase the number of unpredictable fluctuations in the costs of balance services. Fingrid is developing the reserve market with the aim of increasing the supply and expanding the market geographically. The price of imbalance power is significantly affected by the available regulation capacity in the power system and the magnitude of balance responsible parties’ imbalances.

The balance service fees will be valid until further notice. The balance service’s fees and costs are monitored, and the fees are revised to cover changes in the operating costs over time.

Further information:

Jani Piipponen, Manager, Balance Services, Fingrid, tel. +358 30 395 4186
Email addresses are in the form firstname.lastname@fingrid.fi

Prices per megawatt-hour can be converted into prices per kilowatt-hour using the following formula: EUR 1.33/MWh = EUR 0.00133/kWh = 0.133 cents/kWh.