The Market Court’s ruling is negative for the development of electricity networks
The Market Court has issued a ruling regarding the regulatory methods of the distribution system operators (the “DSOs”) for the sixth and seventh regulatory period, i.e. 2024–2031, confirmed by the Energy Authority (the “EA”). The Market Court has rejected the appeals of Elenia and other DSOs. Approximately 70 Finnish DSOs, including Elenia, appealed the EA’s regulatory decision in January 2024.
The DSOs consider some of the changes made by the EA to the regulatory methods to be unreasonable and partially illegal. In its ruling, the Market Court dismissed the DSOs’ appeals. Elenia is disappointed and concerned about the decision and does not consider it to be in the best interest of the society.
“Electricity networks are critical infrastructure for the society. Long-term development of the networks is a prerequisite for Finland’s competitiveness, emergency of supply, and carbon neutrality targets. Electricity consumption is expected to grow significantly in the coming years, which will increase the need for network capacity and investments,” says Elenia’s CEO, Jorma Myllymäki.
“The ability of DSOs to finance network investments depends predominantly on the regulatory methods, and their development plays a crucial role in enabling electrification and economic growth. Sufficient and timely development of electricity networks is in the best interest of society,” Myllymäki continues.
The Market Court’s decision is not yet legally binding. Elenia is reviewing the decision thoroughly to assess its impact on operations.The ruling does not have an impact on Elenia’s current level of earnings or financial KPIs.