This is a correction of the announcement from 14:37 03.10.2017 CEST. Reason for the correction: incorrect headline
Main grid tariffs in Finland are among the most affordable in Europe
Helsinki, Finland, 2017-10-02 09:05 CEST (GLOBE NEWSWIRE) -- Fingrid Oyj Stock exchange release 2 October 2017 at 10:05 EET
Fingrid's key goals are to offer customers affordable pricing and reliable electricity. Stabilisation of the company's investment programme at a lower level and the company's successful actions to improve cost efficiency make it possible to keep main grid pricing in 2018 at the same level as 2017. Fingrid's main grid tariffs in Finland continue to be among the most affordable in Europe.
Fingrid will keep its main grid pricing for next year at the 2017 level. The reason for this is stabilisation of the company's investment programme at a lower level and the company's systematic efforts towards cost efficiency. Main grid tariffs in Finland continue to be among the most affordable in Europe, while disturbances in the main grid are very rare.
Fingrid is developing Finland's main grid to meet the needs of the clean electricity system of the future and those of customers. The aging main grid also requires continuous investments. The company's investments have decreased from peak years, and in the future some 100 million euros per year will be invested in the electricity grid. Major investments in the future will include construction of a new transmission connection to Sweden and increasing transmission capacity between northern and southern Finland.
Fingrid is working hard to improve cost efficiency. The starting point for being cost-efficient is a strategy that focuses on the basic tasks and a clear management system. The company effectively implements market-based outsourcing of services and competitive bidding on procurements in addition to utilising the opportunities provided by digitalisation in its activities. The company has earned a lot of international recognition for its efficiency and has been very successful in various rankings that compare the efficiency of transmission system operators. Cost-efficient activities make affordable pricing possible also in the future.
"Our operations comply with the regulation specified by the energy authorities very closely, and we take changes in the operating environment into account. We have achieved a good balance in our finances. We want to keep price changes small if there are no major changes outside the company," says Chief Financial Officer Jan Montell.
Fingrid's operations and pricing are supervised by the Energy Authority. The regulatory model was renewed when a new four-year regulatory period began for the transmission system operator in 2016. The regulatory model will be valid from 2016 to 2023, and it takes the long timespan required to develop grid activities into better consideration. Since Fingrid's previous regulatory period showed a surplus, this regulatory period will show a cumulative deficit of approximately 40 million euros.
Fluctuations in main grid tariffs are mainly caused by changes in electricity consumption and production, and variation in the costs of loss energy and electricity system reserves. Inflation and interest rates as well as the price level of procured services and materials also affect main grid tariffs.
Further information: Jan Montell, Chief Financial Officer, tel. +358 30 395 5213 or +358 40 592 4419 Jukka Ruusunen, President & CEO, tel. +358 30 395 5140 or +358 40 593 8428
Fingrid is the Finnish transmission system operator. We safeguard a reliable supply of electricity for our customers and society, and shape a clean and market-oriented electricity system of the future.
