Fortum's energy market review: Wholesale electricity prices on the rise - large price variations have activated consumers

Fortum Corporation
Press release
27.5.2009

Fortum's energy market review: Wholesale electricity prices on the rise -
large price variations have activated consumers

Fortum publishes a topical energy market review two to four times a year. Topics
covered in the review include for example fuel price development, electricity
price development on the Nordic power market and factors influencing the
development.

After a six-month decline, the electricity wholesale market prices have begun
rising. On the financial market, the prices for electricity futures have
increased since late February, but are still lower than in the beginning of
2008. On the physical spot market, prices in May have been higher compared to
the same period in 2007-08. Price development is driven by global factors, oil
and emission allowance price development, and the slightly weaker hydrological
situation in the Nordic.

- The sentiment on the financial and equity markets is clearly more positive
than few months ago. Conversely, it seems that the turnaround in the real
economy is not yet at hand. The decrease in electricity consumption in the
Nordic countries has continued and it is possible that there will be additional
industrial production stops during the summer that will further decrease the
industrial electricity consumption, comments Lotta Forssell, Vice President
Communication from Fortum's Power Generation.

During January-April, electricity consumption in the Nordic countries decreased
almost 5% compared to the previous year. The industry consumption decreased
about 17 % during the first quarter of 2009 compared to the first quarter of
2008.

The large variations in wholesale prices have also had a significant impact on
consumers.

- Consumers have become more active due to the large variations in wholesale
prices. More customers have chosen the fixed price contract for one or two
years, comments Timo Liiri from Fortum Markets.

Fortum Corporation
Corporate Communications

Further information:

Lotta Forssell, +358 50 45 36128, lotta.forssell@fortum.com
Timo Liiri, +358 50 45 36461, timo.liiri@fortum.com