Fortum's energy market review: Electricity consumption and wholesale prices have decreased in the Nordic market

Fortum Corporation
Press release
23 February 2009


Fortum's energy market review: Electricity consumption and wholesale prices have
decreased in the Nordic market

The impacts of the global economic slow-down on the electricity market can now
be seen as a decrease in the demand and prices of fuel and electricity.
Wholesale electricity prices on the Nordic market have been going down for
almost half a year. On the financial market, the prices for electricity futures
have decreased to levels last seen over three years ago. On the other hand, the
physical spot market prices are higher than in the beginning of 2007.

- At the same time as the fuel prices have decreased, also electricity
consumption has declined. Even during cold winter days there have not been
significant increases in the spot prices. Normally, a hydro balance this weak
would have resulted in a price peak, comments Fortum Power Generation's Lotta
Forssell, Vice President, Communication.

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

Summary of the energy market review on 23 February 2009:
- The global economic slow-down has had an impact on the demand and price of
fuel and electricity.
- Electricity consumption has decreased significantly in late 2008. In the
Nordic market, the demand declined about 5 TWh during the last quarter of 2008
compared
to the previous year.
- Fuel prices on the international markets decreased dramatically during the
second half of 2008. After the turn of the year, the prices stabilised
temporarily, but have again been sliding during the recent weeks.
- Prices for emission allowances have plummeted. The price is now about EUR 10
per tCO2, compared to about EUR 21 per tCO2 a year ago.
- Nordic wholesale electricity prices have decreased significantly since autumn
2008.
- The Nordic water reservoirs are slightly below the long term average.
- Continental European prices are EUR 10-20 MWh higher compared to Nordic
prices.

Fortum Corporation
Corporate Communications

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