From the perspective of the Electricity Users of Finland (ELFi) and electricity buyers more broadly, the credibility and proper functioning of the market require independent and transparent regulatory oversight.
Buyers need assurance that electricity price formation is monitored consistently and reported transparently. This is achievable when supervisory authorities have sufficient resources to follow market developments and intervene promptly in cases of potential distortion. Without such oversight, buyers bear an unreasonably high risk arising from unhealthy market phenomena.
In spring 2024, the Parliament’s Committee for Economic Affairs made it explicitly clear that the probability of uncovering market manipulation depends fundamentally on the Energy Authority’s resources and investigative powers. According to the committee’s statement, effective price formation oversight and regular reporting require adequate resourcing so that supervision has a genuine deterrent effect. This position strongly supports ELFi’s call for a transparent market and for additional resources to be secured for the authorities.
The transmission system operator Fingrid maintains very close ties to the Finnish Energy industry association, Energiateollisuus ry. In ELFi’s view, this weakens confidence in Finland’s electricity market. We consider it a legitimate question whether the perspectives of electricity-buying companies are being sidelined in the development of the market.
Buyers’ legal protection requires strengthening in matters concerning electricity network operations. We support the view that buyer advocacy organisations should be granted the right to appeal regulatory decisions affecting their members, enabling them to defend their members’ position in relation to decisions made by authorities. The right to appeal is a fundamental element of democracy and a balanced market, in which buyers must also have the ability to influence the rules and costs governing their own operations.
In terms of regulated transmission revenue, developments have moved in the right direction. However, in ELFi’s opinion, there is still room for improvement in determining the return on external capital. Returns that are not cost-based raise the profitability of transmission network operators to a level that is inappropriate for monopoly activities. Insufficient regulation results in unnecessary additional costs for electricity buyers.
Electricity is a basic commodity. In other words, its production or transmission must not become an expensive and excessive source of capital returns. Independent and communicative regulatory activity is, from the buyer’s perspective, a fundamental requirement for fair and cost-effective market functioning.
In the view of the Electricity Users of Finland, a well-functioning overall system creates the trust that enables investment, strengthens competitiveness, and supports the energy transition across society.