Press release

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

27 May 2009, 11:00 EEST

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, [email protected]                     
Timo Liiri, +358 50 45 36461, [email protected]