The Market Court’s decision on electricity network regulation reduces confidence in predictable regulation

The Market Court has issued a ruling regarding the regulatory changes in the middle of the fifth regulatory period. The Energy Authority (“EA”) amended legally binding regulatory decisions of the distribution system operators (“DSOs”) for 2022-2023 following which almost all Finnish DSOs, including Elenia, appealed to the Market Court. The Market Court has now rejected the appeals of the DSOs.

The EA amended legally binding regulatory decisions of the DSOs in the middle of the regulatory period (2020-2023). The revised methods were applied for 2022-2023. 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.

According to the DSOs, the regulatory changes made by the EA were partly unlawful. The Market Court rejected the appeals of the DSOs on 19 August 2026.

Elenia 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.

“We regret the decision from the perspective of the legal protection of network companies and a long-term investment and operating environment. Predictable and consistent regulation is essential to enable investments in electricity networks that are necessary for customers and society as a whole”, says Elenia’s CEO Jorma Myllymäki.

The Market Court’s decision is not yet legally binding. Elenia is reviewing the decision thoroughly and evaluates potential actions. The ruling does not have an impact on Elenia’s current level of earnings or financial KPIs.