Finland’s electricity market was gradually opened to competition after the passing of the Electricity Market Act in 1995. Since late 1998, all electricity users, including private households, have been able to choose their preferred electricity supplier.
There are approximately 75 electricity retailers in Finland. The electricity market also allows electricity consumers to practice small-scale electricity production and sell the energy on the market. Thus, households are becoming active players in the electricity market.
Finland is part of the Nordic wholesale electricity market, which covers the Nordic countries and the Baltic States. Some 70 per cent of the wholesale trade in electricity takes place in the power exchange located in Oslo. The electricity market is becoming European-wide.
Market liberalisation and the Nordic market integration have increased productivity and environmental efficiency, as the Nordic hydropower capacity can now be utilised efficiently and the market also allows for trading in “green” energy.
EU’s internal electricity market
The European Union aims to create a European internal market in electricity. The internal electricity market is a key part of the EU’s energy union and the related objectives concerning the security of energy supply.
The EU Directive on the internal market in electricity also governs Finnish electricity market legislation. In addition to the Directive, the harmonisation of the EU’s internal electricity market is promoted through common network codes.
The central national acts and decrees concerning the energy market in Finland can be downloaded from the Energy Authority’s website.
Further information: petteri.kuuva(at)tem.fi