28.1.2014 10:50
Current News, Electricity Market

Fingrid Oyj arranges a tendering process for the portfolio management

The transmission system operator of Finland, Fingrid Oyj, will arrange a tendering process for the portfolio management of the price hedging of its loss power procurement. The portfolio management service will begin on May 1, 2014.
Fingrid's grid losses are around 1.1 TWh per year. Fingrid procures the corresponding amount of physical power mainly from the power exchange and hedges the procurement price using system price futures and forward contracts available at the power exchange.
 
Fingrid's price hedging horizon is 5 years. In price hedging, Fingrid uses an external portfolio manager. The portfolio manager is responsible for carrying out price hedging according to Fingrid's hedging strategy and providing related reporting and analysis services.
 
Procurement of the physical energy is not included in the portfolio management service.
The contract with Fingrid's present portfolio manager will expire on April 30, 2014. In accordance with its normal policy, Fingrid will arrange a tendering process to select a portfolio manager for the next three year period beginning on May 1, 2014. An option for two additional years will be included in the contract.
 
Portfolio management service providers who are able to fulfil the following requirements, are invited to request the tender material from Fingrid:
  • the service provider is able to provide all the services required by Fingrid:
    • price hedging of the loss power procurement according to Fingrid's hedging strategy
    • hedge accounting
    • clearing of financial contracts in the clearing house
    • reporting related to portfolio management
    • reporting related to the success of price hedging
    • reporting required for quarterly and annual reports and hedge accounting
    • regular market reporting
    • emissions trading related to Fingrid's reserve gas turbines according to Fingrid's strategy
  • the service provider is an experienced provider of portfolio management services in the Nordic power market
    • sufficient experience of portfolio management services
    • sufficiently strong and secured organisation in portfolio management
    • stable financial situation
  • the service provider is independent from power market actors or the portfolio management service offered to Fingrid is sufficiently separated from the company's other market activities
  • the service provider shall have valid MIFID-licence during whole of the agreement period
  • service is provided in either Finnish or English language

The tender materials can be requested at the latest on February 10, 2014 at 15.00 Finnish time from the following e-mail addresses:


For additional information, please contact:
Petsalo Mika, Fingrid Oyj, mika.petsalo@fingrid.fi, puh. +358 30 395 4165
Griinari Simo, Fingrid Oyj, simo.griinari@fingrid.fi, puh. +358 30 395 5105
Hiekkala Juha, Fingrid Oyj, juha.hiekkala@fingrid.fi, puh. +358 30 395 5108