October 29, 2021 04:00 ET | Source: Fingrid Oyj Fingrid Oyj
Stock Exchange Release 29 October 2021 at 11:00 EET
FINGRID GROUP – MANAGEMENT’S REVIEW 1.1.−30.9.2021
Fingrid follows a six-month reporting period as referred to in the Securities Markets Act and publishes Management Reviews for the first three and nine months of the year; the Management Reviews contain key information illustrating the company’s financial and other development.
The information presented in the Management’s Review relates to the Fingrid Group’s performance in January-September and the corresponding period of 2020, unless otherwise indicated. The figures presented here have been drawn up in accordance with International Financial Reporting Standards (IFRS). The Management’s Review is not an interim report in accordance with the IAS 34 standard. The figures are unaudited.
Review by the President & CEO: Strong economic result – biggest ever investment portfolio
The increase in electricity consumption in the first quarters of the year increased grid transmission income in relation to the comparison period. The price of electricity has been unusually high, which has raised imbalance power prices and Fingrid’s turnover. The higher price of imbalance power is also, similarly, reflected in the higher imbalance power costs. Electricity imports from Russia to Finland increased as a consequence of the increase in electricity prices, which increased the cross-border transmission income. All in all, the company’s turnover and result improved clearly compared to the corresponding period of 2020.
We will raise the electricity transmission fees in the main grid by an average of two per cent in 2022. This increase is based especially on the surge in market-based reserve costs. Reserves ensure the power system’s balance of electricity production and consumption. Our objective is to remain among the most affordable transmission system operators in Europe, and thus also do our part in offering a competitive advantage to Finnish companies.
Our investment portfolio is larger than ever. The company has more than 50 substation projects and numerous transmission line projects underway. These investments enable up to 4,500 megawatts of wind power connections. Several major investment decisions were also made during the period under review. The transmission reliability of the main grid has been excellent throughout the period under review, although it was not possible to avoid all disturbances to customers.
Developing the electricity market took a step forward when the government issued a new decree in August on the electricity supply settlement and measurement. The Nordic electricity markets will transfer to a single balance model as of the start of November. In the single balance model, a separate balance will no longer be calculated for electricity production and consumption for the Balance Responsible Party. The decree also provides more detailed provisions on the changes brought about by the introduction of the centralised information exchange system for the electricity retail market, i.e. Datahub, on electricity supply settlement. Fingrid’s Datahub project is progressing well and will go live in February 2022.
Our customers have been happy with our activities. Smooth, trust-based co-operation between different parties is more important than ever in the massive transformation of the power system. The latest Great Place to Work survey results confirm that Fingrid’s personnel are strongly committed to the company, and to the goals of Finnish society.
Main business events
Events after the review period
The company has not changed its earnings guidance from what is stated in the half-year report of 27 July 2021.
Jukka Ruusunen, President & CEO, Fingrid Oyj
tel. +358 30 395 5140 or +358 40 593 8428
Jan Montell, Chief Financial Officer, Fingrid Oyj
tel. +358 30 395 5213 or +358 40 592 4419
Fingrid is Finland’s transmission system operator. We secure reliable electricity for our customers and society cost effectively, and we shape the clean, market-oriented power system of the future.
Fingrid delivers. Responsibly.