Energia
Fingrid Group – Management’s review 1.1.–30.9.2025
Fingrid follows a six-month reporting period in compliance with the Securities Markets Act and publishes Management’s Reviews for the first three and nine months of the year; the Management’s Reviews contain key information illustrating the company’s financial and other development.
The information presented in the Management’s Review relates to Fingrid Group’s performance in January–September 2025 and the corresponding period of 2024, unless otherwise indicated. The figures presented here have been drawn up in accordance with the 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.
“The vision of Fingrid’s new strategy, confirmed in August, is that the electricity system of Finland is clean, reliable and the most competitive in Europe. To achieve this, new solutions that serve customer needs and accelerate grid construction and connections are required. As evidence of this, the Huittinen–Forssa transmission line was completed ahead of schedule, and a conditional connection agreement model has been adopted to support the grid connection and investment decisions of large industrial consumption projects.
At the end of August, Fingrid decided to invest over EUR 160 million in the grid’s main transmission line from Alajärvi to Hausjärvi. The project will increase transmission capacity by approximately 1,500 megawatts and support the transmission of wind power from the highly production-weighted west coast to consumers. The transmission connection, which will be completed in 2028–2029, is one of our most important investment projects and part of the Lowlands Line. The Lowlands Line will help Fingrid ensure the adequacy of north–south transmission capacity and enable customer connections for large-scale industrial projects and the electrification of heating in cities throughout southern Finland.
Risk for the progress of the Lowlands Line is the duration of the processing of the expropriation permit and, according to the current assessment, the necessary Natura exemption permit. Fingrid announced earlier this year that there are local restrictions on connecting new industrial consumption to the main grid in southern Finland during the years 2025–2027, until the investments to strengthen the main grid are completed. The Lowlands Line is a key enabler in this matter.
Fingrid’s financial result during the review period was in line with expectations. From January to September 2025, Fingrid’s turnover was EUR 791.2 (961.6) million, which is 18% less than the previous year due to the decrease in the price of imbalance power. The result for the period was EUR 128.0 (111.4) million. Gross capital expenditure during the reporting period was EUR 342.0 (345.2) million, and the company’s financial position remained strong.
At the end of September, Fingrid announced that it will raise grid service fees by 8% at the beginning of next year. The reason for the increase is the costs arising from the expansion of the electricity system, such as significantly increased capital expenditure costs and operational costs. Costs are also increased by the more extensive contingency measures needed to secure the main grid due to the weakened security situation. Consumption covers about 80% of the grid service fees, and electricity consumption has not increased significantly in recent years. Instead, the costs of reserves acquired for balance management have remained below the forecasted level, which has allowed for a reduction in the balance service fees for balance responsible parties twice this year.
All European electricity markets have finally transitioned to a 15-minute market time unit, as the Day-Ahead Market shifted to a 15-minute pricing and trading period instead of the previous hourly period at the end of September. The change enables the effective participation of renewable energy and demand response in the market.
The Market Court issued its decision regarding the Olkiluoto 3 system protection scheme on 12 September 2025, ruling mainly in favour of Fingrid’s appeal. The Market Court stated that Fingrid itself was not required to carry out all the actions necessary for the creation and operation of the Olkiluoto 3 protection scheme. The Market Court also stated that Fingrid had not violated its obligation to develop, connect, or transmit under the Electricity Market Act.”
On 2 January 2024, Fingrid appealed to the Market Court against the Energy Authority’s decision on the terms and conditions of balance service. The appeal mainly concerned the collateral model for balance responsible parties presented in the decision. In November 2023, the Energy Authority issued a decision on the terms and conditions for balance responsible parties, which include the principles for how collateral requirements are determined. The Energy Authority’s decision includes major changes to the current collateral terms and conditions and sets apart Finland’s collateral model from that used in other Nordic countries. The most significant changes to the current collateral model include a major reduction in the required collaterals, elimination of the requirement to provide adequate additional collateral and a possible collateral ceiling. The reduction of collaterals required per balance responsible party will increase the counterparty risks for Fingrid.
On 29 January 2024, Fingrid appealed to the Market Court against the Energy Authority’s decision on the methods concerning the specification of the profit for the electricity transmission grid operations for the sixth regulatory period 1 January 2024–31 December 2027 and seventh regulatory period 1 January 2028–31 December 2031. According to Fingrid’s assessment, the decision on the regulatory methods is a significant weakening of the electricity transmission grid operations’ reasonable profit regulatory method that expired at year-end. In Fingrid’s view, the assessment of impacts in preparing the regulatory model decision has been deficient and there are still issues open to interpretation related to the presented decision. The decision weakens Fingrid’s ability to invest. Fingrid’s goal is a solution that would also enable the future development of the grid, allowing the hundreds of billions in green transition investments in Finland to be implemented as planned.
On 12 September 2025, the Market Court issued its decision on the appeals filed by Fingrid and Teollisuuden Voima Oy against the Energy Authority’s decision of 11 January 2024 concerning the scope of the national transmission system operator’s systems responsibility regarding the grid connection of the OL3 nuclear power plant. The Market Court ruled mainly in favour of Fingrid’s appeal. The Market Court stated that Fingrid itself was not required to carry out all the actions necessary for the creation and operation of the Olkiluoto 3 protection scheme. The court agreed with Fingrid’s position that the Olkiluoto 3 protection scheme could be agreed upon separately between the parties. However, the Market Court found that Fingrid should have had the terms and conditions of the Olkiluoto 3 protection scheme fees approved by the Energy Authority. The Market Court rejected TVO’s appeal and concluded that Fingrid had not violated the development, connection, or transmission obligations under the Electricity Market Act.
According to the Market Court, Fingrid had the right to set protection-related terms and conditions for connecting to the main grid, without being fully responsible for fulfilling those terms and conditions through its own actions or costs.
In accordance with the Energy Authority’s decision, Fingrid submitted its proposal concerning the determination principles for fees related to the OL3 protection scheme on 30 April 2024. The Energy Authority issued its decision on the determination principles for fees on 30 December 2024. According to the decision, TVO shall bear the costs for reimbursements to response resources connected to system protection and for the construction, maintenance and use of data communication connections. The decision states that Fingrid shall bear the costs for acquiring the response resources and awarding contracts, managing the system protection scheme and the tests to be carried out on the response resources for system protection, as well as for the maintenance of the measurement and monitoring system for system protection in Fingrid’s operation control system. Fingrid and TVO have agreed on fee arrangements for Olkiluoto 3’s system protection scheme as of 1 January 2025. The agreement is based on the decision issued by the Energy Authority on the costs for the system protection scheme on 30 December 2024. The matter concerning the determination of fees is still under consideration by the Market Court due to appeals filed by Fingrid and TVO.
Fingrid received an expropriation permit for the widening of the Torna–Lautakari right-of-way for the neutral line on 27 October 2022. In the kick-off meeting for the expropriation procedure on 1 December 2022, the expropriation committee decided that the expropriating party is obligated to assume responsibility for the tree stands within the scope of the rights and restrictions set in the expropriation permit, unless otherwise agreed. The final meeting of the expropriation procedure was held on 16 November 2023. Fingrid appealed against the decision concerning the Torna–Lautakari tree stands’ expropriation to the Southwest Finland District Court’s Land Rights Court on 22 December 2023.
The Market Court issued, on 17 October 2025, its decision regarding Fingrid’s appeal against the Energy Authority’s decision of 30 November 2023, concerning the terms and conditions for balance responsible parties. The Market Court dismissed Fingrid’s appeal in its entirety and upheld the Energy Authority’s decision. The decision included major changes to the previously applicable collateral terms and set apart Finland’s collateral model from that used in other Nordic countries. As a result of the decision, the collateral required from the balance responsible parties was significantly reduced.
Fingrid appealed against the Market Court’s decision of 12 September 2025 regarding the appeals filed by Fingrid and Teollisuuden Voima Oyj against the Energy Authority’s decision of 11 January 2024 concerning the scope of the system responsibility of the transmission system operator with regard to OL3’s system protection scheme. In Fingrid’s view, the implementation and maintenance responsibility for OL3’s system protection scheme, including its costs, are in no way part of Fingrid’s system responsibility, and the terms and conditions of the system protection scheme or the basis for determining fees do not need to be submitted to the Energy Authority for approval.
Fingrid’s earnings guidance remains unchanged from 4 March 2025: Fingrid Group’s result for the 2025 financial year, excluding changes in the fair value of derivatives and before taxes, is expected to be on the same level as in 2024.
The segment information is FAS-compliant, and the column “eliminations and consolidation entries” includes items that reconcile the segment reporting with the IFRS consolidated financial statements. The segments’ results are assessed on the basis of the operating result. The segments’ combined operating results constitute grid operations’ operating result, which serves as the basis for the calculation of the actual adjusted result compatible with regulation. Costs are allocated to the segments in accordance with the matching principle, which creates a basis for pricing the services. Finance income and costs are not allocated to the segments, as the Group’s cash assets are controlled by Group Treasury.
Variations between the segments’ results and turnover are typical. The segments form the basis for the calculation of Fingrid’s adjusted result compatible with the reasonable return regulation, and thus the results development of one segment can also affect the other segment over time to avoid exceeding the allowed regulatory profit set for the operations. The segments’ service prices are adjusted to correspond to costs over time.
The main grid segment includes development and maintenance of the main grid, the connection of new production and consumption to the network, electricity transmission, grid operation and the development of unified electricity markets and reserves related to maintaining the electricity system.
The balance services segment includes activities related to national balance management and imbalance settlement. In addition, development of the reserve markets related to balance management is included in the balance services segment.
The segment information is FAS-compliant, and the column “eliminations and consolidation entries” includes items that reconcile the segment reporting with the IFRS consolidated financial statements.
Other activities include Fingrid’s other statutory public service obligations that are not part of actual transmission network operations or transmission system responsibility. These tasks include centralised information exchange services for the electricity market as well as peak load capacity services and guarantee-of-origin services for electricity, which are provided by the Group companies Fingrid Datahub Oy and Finextra Oy. Other activities also includes the parent company’s administrative and ICT services for subsidiaries. Income and expense items between the parent company and subsidiaries are eliminated in the Group reporting. IFRS items include among other things, changes in the market value of electricity derivatives, recognition of connection fees over time according to IFRS 15, and recognition of leases over time according to IFRS 16.
Further information:
, President & CEO
+358 30 395 5235 or +358 50 573 9053
, Chief Financial Officer
+358 30 395 5176 or + 358 50 344 8534
Fingrid delivers. Responsibly.
www.fingrid.fi
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