27 August 2010 – The Supreme Administrative Court in Finland has overruled the appeal by the Finnish Competition Authority on the decision of the Market Court on 14 March 2008.
The Market Court decided then that Fortum’s E.ON Finland acquisition in 2006 did not give Fortum a dominant market position or strengthen the market position.
In their ruling, the Supreme Administrative Court stated that Fortum cannot be considered to have a dominant position in the power generation and wholesale market, because the relevant geographical market area consists of at least Finland and Sweden. With its decision, the Supreme Administrative Court confirms the view of the Market Court.
“We are very pleased with the Court’s decision as it gives better possibilities to develop our operations also in Finland,” says Fortum’s Executive Vice President Anne Brunila.
Fortum sells all the power it generates in Finland and Sweden to the wholesale market through the Nordic power exchange Nord Pool. Approximately 330 companies trade at Nord Pool and approximately 70 per cent of all electricity consumed in the Nordic countries is sold through it.
Although Fortum is the third largest power generator in the Nordic countries, its market share is only approximately 13 per cent of Nordic consumption.
“Even though power is traded in several different price areas in Nord Pool, the
Nordic countries form a well-functioning market area. Accordingly, the area prices for Finland and Sweden were exactly the same over 94 per cent of the time during the past five years.
“The area price for Finland has been higher than in Sweden for only 2.5 per cent of the time. Area price differences are expected to reduce even further as new transmission capacity is taken into use,” Anne Brunila emphasizes.