Press release

Fortum's comment on the Finnish Government's planned tax

31 March 2009, 16:42 EEST

Fortum Corporation Press release 31.3.2009

Fortum's comment on the Finnish Government's planned tax                        

The Finnish Government has today published a plan to establish a new tax on     
hydro and nuclear power production that has been built before the Kyoto         
agreement of 1997.                                                              

According to Fortum, the tax would be against climate and energy policies and   
would increase production costs and thus electricity prices.                    

The tax would benefit energy imports over domestic energy production. It would  
also distort competition, because it would be based on estimation and would be  
levied on certain production forms only, whereas other production forms would   
get State support. Furthermore, the Government's plan would be against the EU's 
energy directive according to which energy shall be taxed based on consumption, 
not production.                                                                 

”The very idea of the emissions trading scheme was to direct investments to     
emissions-free power production. The emission cost is a steering mechanism;     
producers who emit will pay and producers who don't will benefit. A special     
hydro and nuclear tax would work against that idea and would, in fact, punish   
CO2-free production. At the same time, it would increase uncertainty in the     
markets and endanger new investments,” says Fortum's SVP Corporate Development  
Timo Karttinen.                                                                 

Fortum Corporation                                                              
Corporate Communications                                                        

Further information: Timo Karttinen, SVP Corporate Development, Fortum          
Corporation, +358 50 453 6555