Fortum’s electricity market review 19 March 2008

Fortum publishes a current electricity market review once or twice a year. Topics covered in the review include price development on the Nordic power market and factors influencing the development.

Summary:                          

         The Nordic wholesale prices have increased compared to last year – but not as much as was expected. Lower then expected prices are mainly due to strong hydrological situation and warm weather.

         There is a surplus of 11 TWh in the Nordic water reservoirs compared to long term average and in addition there is estimated to be also more snow than average in Norway.

         Price for emission allowances for 2008 have been around 21 EUR/tCO2 in March.

         Wholesale prices in the Continental Europe have increased more compared to the Nordic as a result of increased CO2, coal and oil prices. For 2008 the difference in future quotations between Nordic and Germany is up to 30 EUR/MWh when for the coming years it is about 15 EUR/MWh.

         Higher continental prices have resulted in increased exports from Nordic to Germany.

 

The whole review is attached as a pdf.

 

 

Fortum Corporation

Corporate Communications

 

Further information:

Lotta Forssell, +358 50 45 36128, lotta.forssell@fortum.com