26.10.2017 12:10
Press Releases, Current News, International News, Electricity Market

New proposal by the Swedish and Norwegian transmission system operators does not eliminate flaws - special role of the two countries in decision-making is not possible

On Monday 23 October, Fingrid received a new agreement proposal in the process launched in the summer by the Swedish and Norwegian transmission system operators concerning the decision-making and balance management. Today, 26 October, Fingrid issued a response to the new agreement proposal and a proposal for further work.

The Swedish and Norwegian proposal concerns the decision-making procedures of the transmission system operators and the balance management structure of the Nordic electricity system. To a significant extent, the new agreement proposal is similar to the previous proposal of the Swedish and Norwegian transmission system operators. The Danish transmission system operator, Energinet, has agreed to the new proposal.

The decision-making model in the proposal is based on a voting procedure. The voting procedure is not, however, based on equality, as the voting powers of Norway and Sweden would be twice that of Denmark and Finland. The Norwegian and Swedish transmission system operators together could thus decide on matters concerning Finland and Fingrid without the actual ability of Fingrid to have its say. Legislation binding on EU member states expressly requires transmission system operators to make regional decisions unanimously. The interpretation of current legislation has been confirmed by both the Finnish Energy Authority and the Nordic energy authorities together.

“Fingrid cannot accept decision-making principles that have been found to be unlawful. We must be deciding on matters essential to system security and the market on an equal footing, as is also clearly stated in EU legislation,” says Jukka Ruusunen, President and CEO of Fingrid.

The proposal would also mean that the Swedish and Norwegian transmission system operators would take care of a key part of the system responsibility for Finland’s power system. System responsibility is a central element of national self-determination so its transfer to another country is not possible according to Finnish law.

The European Commission to decide in case of dispute
Fingrid is disappointed in the course of action taken by the Swedish and Norwegian transmission system operators in this matter. Significant changes concerning the whole Nordic electricity market should be prepared openly, in cooperation between stakeholders, transmission system operators and authorities. European Union legislation sets out clear timetables and responsibilities for market development and decision-making. If the transmission system operators fail to reach agreement on the balance management structure, the matter will be transferred to the European Commission for resolution.

“The ‘take it or leave it’  cabinet game practised by the Swedish and Norwegian transmission system operators does not correspond to our understanding of equal and open cooperation. If necessary, we are ready to take the matter to the European Commission for resolution,” adds CEO Ruusunen.

As an alternative to the model advocated by Sweden and Norway, Fingrid has proposed the further development of the present balance management structure according to a timetable set by EU legislation and in cooperation with market parties, stakeholders, transmission system operators and authorities. The present balance management structure is based on well-advanced Nordic integration, and it is important for stakeholders in all countries to be able actively to influence its development. 

Today, 26 October, Fingrid issued a response to the new agreement proposal and a proposal for further work. This response and the draft agreement offered to Fingrid are attached to this news release.
 
Further information:
Senior Vice President, Electricity Market Development, Asta Sihvonen-Punkka, tel. +358 (0)50 573 9053
President and CEO Jukka Ruusunen, tel. +358 (0)40 593 8428 (owing to a business trip, available only through callback 26-27 October)
 

Proposed agreement