13.5.2015 09:40
Current News, International News

The cross-border transmission tariff for 400 kV connections between Finland and Russia will depend on the difference between the Finnish regional price and the regional price for north-western Russia from June 2015

The amount of electricity imported to Finland from Russia has decreased significantly over recent years and the hourly imports from Russia have fluctuated drastically. The Russian capacity mechanism and a rise in the price of energy in Russia have both played a part in the decline in electricity trade. On 1 June 2015 Fingrid will implement a dynamic tariff, wherein the size of the tariff will depend on the difference in price between the Finnish regional price and the north-western Russian regional price (Free Flow Zone 27). The aim of the new tariff structure is to promote electricity trade between Finland and Russia, especially during times when the difference between regional prices is small.

The new tariff is the same for bilateral and direct trade in both imports and exports.  A detailed description of the tariff is included in the terms of service approved by the Energy Authority and published on Fingrid's website here.

The factors for the tariff formula contained in the terms of service are as follows:
  • knoncap       for hours not subject to a capacity fee the factor is 0.35,
  • cap              for hours subject to a capacity fee the factor is 0.35
  • k                is 1.
The level of the tariff is determined such that it covers the transmission costs to Fingrid as well as reasonable returns.  Fingrid may change the value of the aforementioned factors with a notice period of 30 days, if tariff income does not correspond to the costs which arise from the transmission of electricity.
 
The commercial transmission capacity along 400 kV connections from Russia to Finland is 1300 MW, of which 1160 MW is used for bilateral trade and 140 MW is used for direct trade. With regard to exports from Finland to Russia, 180 MW is used for bilateral trade and 140 MW is used for direct trade.
 
From January 2015 electricity imported to or exported from Finland via bilateral trade must be offered as a price-independent bid on the electricity exchange.
 
From June 2015, the allocation of direct trade capacity (140 MW) will be based on the buy and sell bids on the exchange area to be opened in the Finnish Russian border. This will increase transparency in trade and allow for several actors to participate in direct trade.
 
Further information:
Risto Lindroos, tel. 030 395 5139