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