European electricity market is best promoted through TSO co-operationFingrid Oyj, the transmission system operator in Finland, supports the proposal of the European Commission to improve the functioning of the European electricity market by means of closer co-operation between transmission system operators in the various countries. Instead, Fingrid is not in favour of the proposal by some parties concerning a Nordic independent system operator (ISO).The energy package published today by the Commission contains many suggestions that can be supported, such as closer co-operation between transmission system operators (TSOs).
- “The Nordic TSOs have been active initiators in the development of regional electricity market. Strengthening this co-operation is the best way in which we can develop the ordic market and also integrate into the European market,” Jukka Ruusunen, President and CEO of Fingrid, stated today. - “The co-operation model applied by the Nordic TSOs comprises strengths such as integrated decision-making and implementation of grid investments. The Nordic TSOs have already agreed on an investment programme of one thousand million euros, which will reduce market segregation distinctly.
I feel that through TSO co-operation, we are better equipped to respond to the needs of the electricity market and to develop the grid cost-efficiently over a long time span. It is better than creating a new regional ISO organisation which does not own the grid but only operates it,” Jukka Ruusunen says. - “The Nordic TSOs have agreed on highly concrete action, aiming among other things at increasingly efficient grid engineering processes, improved grid operation, effective use of reserves, and harmonisation of balance service. Moreover, we have decided to improve the transparency of the market considerably.” The energy package of the Commission proposes the distinct separation of electricity production and transmission.
- “Time will tell how the proposal of the Commission will evolve within the political drafting process. There are presently great differences in the ownership structure of TSOs in the various European countries. In some countries the TSOs are listed companies, in some countries the government owns the TSO either entirely or partly, and some countries have vertical ownership, i.e. production and transmission have not been separated, ” Jukka Ruusunen says. - “The ultimate objective of the Commission to separate production and transmission is correct. This was the very reason why Fingrid was established 10 years ago, when production and transmission were separated in Finland. Through a versatile ownership structure, Fingrid has succeeded in securing impartial and neutral operations together with system security and cost efficiency. As an example, Finland has the lowest grid tariff in Europe and a very high system security in electricity transmission,” Jukka Ruusunen states. Further information:
President & CEO, Fingrid Oyj, jukka.ruusunen(at)fingrid.fi, +358 30 395 5140