Energiakolmio is new portfolio manager for Fingrid’s loss energy

Fingrid Oyj and Energiakolmio Oy have signed a three-year contract on portfolio management for Fingrid’s loss energy. Energiakolmio, an energy consultant based in Jyväskylä, Finland, was chosen as the portfolio manager on the basis of international competitive bidding. Energiakolmio will carry out price hedging in accordance with Fingrid’s strategy on the derivatives market, aiming at an optimum result for Fingrid. The service also covers trading in the emission rights of Fingrid’s reserve power plants, and portfolio management reporting.

Losses are always created in electricity transmission. The losses in the Finnish electricity transmission grid total just over 1 terawatt hour per year, which accounts for about 1 per cent of all electricity consumption in Finland. The costs of loss energy procurement constitute a significant cost item for Fingrid (44 million euros in 2007). The objective of Fingrid’s portfolio management is to hedge itself against sudden changes in market prices and hence secure an even and predictable grid tariff.

Loss energy purchases are hedged in full in advance by spreading the hedging over several years.
“We follow a cautious and conservative strategy in price hedging. Energiakolmio carries out the hedging action and its timing independently in accordance with the given strategy. We feel that this is a suitable procedure for a transmission system operator on the electricity market,” says Fingrid’s Senior Vice President Reima Päivinen.

Fingrid continues to make the purchases of physical electricity itself by buying electricity primarily in the electricity exchange.
“Fingrid is a significant and major player on the electricity market, and we are very happy about the trust Fingrid has shown towards our enterprise and expertise. We will place special focus on this co-operation, and we believe that it will bring Energiakolmio additional prospects for growth,” says Managing Director Pasi Valoranta of Energiakolmio.   Further information:
Reima Päivinen, Senior Vice President, Fingrid Oyj, tel. +358 (0)30 395 5160, +358 (0)40 556 2662
Jari Siltala, Senior Specialist, Fingrid Oyj, +358 (0)30 395 4244, +358 (0)40 553 6040
Pasi Valoranta, Managing Director, Energiakolmio Oy, +358 (0)20 799 2109, +358 (0)50 553 8503