Fingrid Oyj - Company Announcement

Grid fees to increase seven per cent – no major pressure to increase fees in the near future

Helsinki, Finland, 2016-10-17 09:00 CEST (GLOBE NEWSWIRE) -- Stock Exchange
Release 17 October, 2016 at 10.00 EET 

Fingrid Oyj will raise grid service fees by an average of seven per cent at the
start of 2017. The grid service fees will be used to cover future investments
and operating costs. Fingrid’s grid service fees remain low compared to other
European countries, and no major increases are expected in the next few years. 

Fingrid is investing close to a quarter of a billion euros in the grid in 2017
and 2018. The costs of grid operations are not expected to grow significantly,
but transitioning to a low carbon energy system will entail additional costs
for the company. Fingrid is expected to operate cost-effectively. The company
pays taxes and dividends to Finland and has remained among the European
transmission system operators with the lowest price level. The price increase
applies to grid customers. The indirect impact of the increase for residents of
blocks of flats and detached homes in Finland will amount to approximately
10–50 cents per month*. 

Fingrid’s objective has been to avoid major one-time increases in grid fees,
for which reason the company is expected to record a deficit of roughly EUR 60
million in 2016. Grid fees in 2017 will be raised to the regulatory allowed
level, which will mean an average increase of approximately seven per cent. 

Fingrid’s operations and pricing are monitored by the Energy Authority. 2016
marked the start of a new, four-year regulatory period for the transmission
system operator as well as a new regulatory model. The new model for the period
2016–2023 takes better into account the long time frame needed for developing
grid operations. It enables a slightly higher return than the currently
exceptionally low interest rate level. The new regulatory model will enable the
company to ensure a reliable electricity supply for Finns and make the
necessary investments in the energy system. 

Grid pricing is expected to remain stable in the future. Price fluctuations are
mainly caused by changes in electricity consumption and production, and by
variations in the cost of loss energy and reserves. 

Further information:
Jukka Ruusunen, President & CEO, tel. +358 30 395 5140 or +358 40 593 8428
or
Jan Montell, Chief Financial Officer, tel. +358 30 395 5213 or +358 40 592 4419


Fingrid’s task is to work for the benefit of its customers and society. We
transmit electricity reliably, we actively promote the electricity market and
we develop the electricity grid for the long term. 

* The calculation is based on the annual electricity consumption of a flat or a
detached home with direct electric heating, roughly 5,000–20,000 kWh.