Market Court rejects Fingrid’s appeal regarding the collateral model for balance responsible parties

The Market Court issued today, on 17 October 2025, its decision regarding Fingrid’s appeal against the Energy Authority’s decision of 30 November 2023, concerning the terms and conditions for balance responsible parties. The Market Court rejected Fingrid’s appeal in its entirety and thus upheld the decision of the Energy Authority. The Market Court’s decision is a disappointment for Fingrid, as it increases the company’s financial risks.

Fingrid’s appeal concerned the terms and conditions under which the collateral requirements for balance responsible parties are determined. Balance responsible parties are electricity market parties who ensure that electricity production and consumption are balanced both in their own operations and for their customers. This balance, however, will never be fully achieved without the actions of Fingrid. For this reason, Fingrid acquires missing balancing power in real-time from the reserve markets, which exposes the company to financial counterparty risks in relation to the balance responsible parties. Sufficient collateral from the balance responsible parties is essential for managing these risks, so that Fingrid can protect itself from potential financial losses and ensure the operational reliability of the entire electricity system.

The decision issued by the Energy Authority in November 2023, which is the subject of the appeal, included major changes to the previously applicable collateral terms and set apart Finland’s collateral model from that used in other Nordic countries. As a result of the decision, the collateral required from the balance responsible parties was significantly reduced.

The Market Court’s decision means that the currently applied terms and conditions for balance responsible parties, as confirmed by the Energy Authority, including the criteria for determining the collateral that were the subject of the appeal, will remain in effect. As a result of the criteria for determining the collateral confirmed by the Energy Authority, Fingrid is exposed to a greater financial risk than before, which may weaken Fingrid’s ability to fulfil its statutory duties and increase costs for all market parties.

Fingrid is disappointed with the Market Court’s decision. Fingrid will next take a closer look at the grounds for the decision and assess possible follow-up actions.

Further information

Antti Keskinen, Senior Vice President, Electricity Markets, tel. +358 40 683 1870
Asta Sihvonen-Punkka, President & CEO, tel. +358 50 573 9053

Related press releases

Energy Authority publishes decision on the collateral model for balance responsible parties, 20 December 2023

Fingrid appeals the Energy Agency’s decision on the balancing guarantee model to the Market Court, 2 January 2024