Customer needs and Energy Authority’s new regulatory model shape grid investments
The Energy Authority, which regulates the regulated grid operations and their return, has given its decision on the methods concerning the specification of the return for the electricity transmission grid operations for the sixth regulatory period 1 January 2024–31 December 2027 and seventh regulatory period 1 January 2028–31 December 2031. In its statements, Fingrid has presented its views on the guidelines concerning the regulatory methods published by the Energy Authority and on various regulatory decision drafts presented towards the end of the year.
According to Fingrid’s assessment, the decision on the regulatory methods is a significant weakening of the electricity transmission grid operations’ reasonable return regulatory method that expired at year-end. The need to build and develop the grid in order to achieve climate and environmental targets and to enable green transition investment projects is growing. Fingrid is continuing to implement its largest investment programme but is assessing the profitability of its future grid investments due to the new regulatory methods set by the Energy Authority.
The regulatory methods that expired at the end of 2023 created the conditions for Europe’s lowest grid service fees, the high system security of the power system and the rapid growth of renewable electricity production. Additionally, Finland’s grid is in excellent condition based on industry comparisons and its power system is one of the cleanest in Europe. Fingrid’s grid enables industrial projects linked to the green transition and is an important national competitive factor.
In Fingrid’s view, the assessment of impacts in preparing the regulatory model decision has been deficient and there are still issues open to interpretation related to the presented decision. Fingrid’s goal is a solution that would also enable the future development of the grid, allowing the hundreds of billions in green transition investments in Finland to be implemented as planned. For this reason, Fingrid is appealing the Energy Authority’s decision in the Market Court.
Jukka Metsälä, Chief Financial Officer, Fingrid Oyj, tel. +358 40 563 3756, firstname.lastname@example.org