Practically all system operators appeal the changes in the regulatory methods to the Supreme Administrative Court
The regulatory methods for distribution system operators (“DSOs”) for 2024–2031 set by the Energy Authority (the “EA”), significantly weakened the operating conditions and investment capabilities of the industry. The regulatory methods endanger the implementation of network investments in the long term, which is in conflict with ensuring Finland's competitiveness and accomplishing the clean transition.
Practically all Finnish DSOs, including Elenia, appealed the EA's decision to the market court. The market court rejected the appeals in November. In line with Finnish Energy, Elenia is also disappointed with the verdict and does not consider it to be in the best interest of society. According to Finnish Energy, the market court did not properly evaluate the impact of the changes on the DSOs and did not take into account the consequences of the regulatory amendments on the society. The development of electricity networks is essential in terms of Finland's competitiveness, emergency of supply and carbon neutrality targets, and therefore it is important that the Supreme Administrative Court will assess the case.
“It is crucial for DSOs that the regulatory methods are clear and consistent. The regulatory methods should simultaneously ensure that tariffs paid by the customers remain reasonable, and that the DSOs can continue investing in the development of the electricity networks in order to meet the needs of the customers and the society”, says Elenia’s CEO Jorma Myllymäki.
In Europe, the development of electricity networks is seen as vital in achieving the goals of the clean transition. In Finland, the regulatory methods are moving in the opposite direction. Among other things, the impact assessment of the regulatory methods on these societal effects has been significantly inadequate.