Distribution system operators appeal the changes in the regulatory methods to the Supreme Administrative Court

Distribution system operators (“DSOs”) appeal the mid-period regulatory changes to the Supreme Administrative Court. Finnish Energy considers the assessment important for ensuring the predictability of regulation.

The Energy Authority (“EA”) amended legally binding regulatory decisions of the DSOs in the middle of the regulatory period (2020-2023). The amendments applied for 2022-2023. According to the DSOs, the regulatory changes made by the EA were partly unlawful and they appealed the decision to the Market Court. The Market Court rejected the appeals in August. Now majority of the DSOs, including Elenia, appeals the Market Court decision to the Supreme Administrative Court.

The EA justified the changes by citing amendments to the Electricity Market Act that entered into force on 1 August 2021. The legislative amendment granted some DSOs additional time to meet the security of supply targets. Finnish Energy considers the development of regulatory methods important but views that legally binding confirmation decisions should not be amended in the middle of the regulatory period in a way that undermines the predictability of regulation.

Predictable and consistent regulation is essential to enable investments in electricity networks that are necessary for customers and society as a whole. Therefore, Finnish Energy deems it important that the Supreme Administrative Court will assess the case.