Fingrid investigates reforming the main grid tariff structure to create incentives for more efficient grid usage
Fingrid has continued to develop the change proposals to the structure to main grid fees that were introduced in summer 2024. The new publication presents development proposals for main grid service fees (i.e., transmission fees) and provides an update on previous proposals. Stakeholders are invited to share their views on these proposals to support further work; feedback can be submitted until the end of January 2026.
The structure of main grid fees has remained largely unchanged for decades, while the electricity system itself has undergone significant transition. Fingrid’s goal is to renew the tariff structures and create incentives for more efficient use of the transmission grid. This would allow the same grid to serve more customers and help curb the need for investments. More electricity consumption and production could be connected to the grid with fewer investments and at a faster pace. This would also improve the cost-effectiveness of grid fees charged to all grid users and increase the principle of user-pays, cost-reflectiveness, and transparency — making the fee basis fairer.
No feasible solution was found for the connection fee reform; next, Fingrid will investigate location-based main grid service fees
In the connection fee reform proposed by Fingrid in summer 2024, the idea was that, in addition to the current connection fee, a regional capacity fee based on connection power would be charged from the connecting party. This new fee would cover broader grid reinforcement costs required for the connection. This would strengthen the principle of user-pays and create incentives to locate new electricity consumption and production closer to each other.
However, discussions between Fingrid and the Energy Authority have not reached a common understanding regarding the handling of projects connecting to distribution networks. Therefore, Fingrid has concluded that there are no conditions for implementing the connection fee reform.
Instead of the connection fee reform, Fingrid is now investigating the introduction of location-based grid service fees. Currently, main grid service fees are the same throughout Finland. Locational signals in pricing would be a market-driven and efficient way to curb investment needs in the transmission grid as well as the total costs charged to grid users, while also making the fees more cost-reflective.
Five development proposals for main grid service fees
The starting point for the new development proposals for main grid service fees has been a fee structure that would strengthen cost-reflectiveness and increase transparency in covering the costs of main grid services. If implemented, these proposals would fundamentally renew the structure of main grid service fees:
- Transition of main grid service billing from hourly to 15-minute intervals
- More power-based tariffing and weighting of the billing interface at the main grid connection point
- Loss fees replacing main grid input and output fees, possibly applied regionally
- Consideration of Voltage-spesific pricing
- Introduction of a new system service fee based on total consumption and production
Next, feedback on the proposals will be collected until the end of January 2026. Instructions for submitting feedback are attached. Fingrid will continue to develop the proposals based on consultation feedback and will publish an impact assessment in spring 2026. The aim is to make decisions on reforms to the main grid tariff structure by summer 2026 and to implement them from January 1, 2028.
Further information:
Jussi Jyrinsalo, SVP, Fingrid Oyj, tel +358 30 395 5118
E-mail addresses: forename.surname@fingrid.fi
Attachments:
Change proposals to the main grid tariff structure. Part 2 >
Consultation questions >
More information on the topic >