Strong political support needed for building a Nordic retail market for electricity

Fortum Corporation                                                              
Press release                                                                   
15 October 2009                                                                 
Strong political support needed for building a Nordic retail market for
electricity 

The Nordic retail market for electricity is on the agenda when the Nordic energy
ministers meet on 27 October. Market integration has already been identified as 
an overall target, but the process towards a truly harmonised retail market has 
thus far been slow. Fortum fully agrees on the benefits of a further developed  
and integrated Nordic retail market and emphasizes the need for strong political
support to enhance the process.                                                 

In May this year the Nordic Energy Regulators (NordREG) submitted a report to   
the Nordic Council of Ministers emphasising the benefits a harmonised retail    
market would have for consumers in the Nordic countries. In the report NordREG  
underlines that the customers' position would be strengthened and a greater     
variety of product and services would be provided. Fortum fully agrees on the   
benefits of a further developed and integrated Nordic retail market and         
emphasises the need for a clear political signal to enhance the process.        

"A strong signal from the Nordic Council of Ministers would significantly       
promote the process. We are happy to participate in a well-focused and aligned  
project aiming for a truly Nordic retail market," says Tapio Kuula President and
CEO, Fortum Corporation.                                                        

The Nordic electricity market is the benchmark                                  

The Nordic electricity market is acknowledged as one of the most efficient and  
advanced worldwide. The wholesale markets are integrated but the retail markets 
are still national, even if they have been liberalised for over 10 years.       

Today, the national retail markets provide the basic functionalities such as    
simple and safe supplier switching, but there is a need for further development 
to facilitate speed and quality of customer service. In addition, the retail    
markets must also contribute to the climate change mitigation and prepare for   
the future challenges. Electric vehicles, small scale local production schemes  
and smart homes are examples of means to promote energy efficiency and          
sustainability. The retail markets should provide the necessary support and     
structure in order to encourage innovation and efficiency. All Nordic countries 
face the same challenges and developing the retail market together in a         
harmonised manner would bring significant additional advantages.                

Further information:                                                            
Mr. Esa Hyvärinen, Vice President, Public Affairs, Fortum Corporation           
Telephone: +358 40 826 26 46, e-mail: esa.hyvarinen@fortum.com                  

NordREG's report (uploads a pdf report):                                        
https://www.nordicenergyregulators.org/upload/Reports/Market_Design_Common_Nordi
c_end-user_market_20090507.pdf 

Fortum's position on integrated Nordic retail market for electricity:           
http://www.fortum.com/document.asp?path=14022;14024;14026;14043;14070;14071;4329
5;43957;46930&level=4 

About Us

Fortum is a leading clean-energy company that provides its customers with electricity, heating and cooling as well as smart solutions to improve resource efficiency. We want to engage our customers and society to join the change for a cleaner world. We employ some 9,000 professionals in the Nordic and Baltic countries, Russia, Poland and India, and 62% of our electricity generation is CO2 free. In 2016, our sales were EUR 3.6 billion. Fortum's share is listed on Nasdaq Helsinki. www.fortum.com

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