Fingrid is a public limited company whose governance is based on the Finnish Limited Liability Companies Act, the Market Abuse Regulation, the Securities Market Act, its articles of association and its shareholder agreements. Fingrid complies in its operations with the Corporate Governance Code for Finnish listed companies published by the Securities Market Association because the company has issued bonds listed on the Ireland and London Stock Exchanges. This corporate governance statement has been drawn up in accordance with the recommendations and reporting requirements of the Corporate Governance Code 2015 (“Corporate Governance Code”), in addition to which the recommendations of the Corporate Governance Code 2020 have been taken into account in part. Fingrid’s shares are not subject to public trading.
The company’s activities are primarily regulated by the Electricity Market Act. The Electricity Market Act stipulates that Fingrid’s governance and its grid operations must be independent of the production and sale of electricity and natural gas. Fingrid’s owners must ensure that they keep separate decision-making which concerns Fingrid and decision-making concerning companies which practice the production or sale of electricity or natural gas. The confirmed regulatory methods allow the Energy Authority to monitor the reasonableness of the prices of Fingrid’s electricity transmission operations, as well as its capabilities to make sufficient investments in its grid and cover its costs. The Energy Authority confirms the allowed earnings for each regulatory period. The current regulatory methods for the regulatory periods 2016–2019 and 2020–2023 entered into force on 1 January 2016.
Fingrid’s corporate governance statement was drawn up as a separate report from the annual report and has been processed by Fingrid’s Board and the Board’s audit committee. Fingrid’s auditing organisation PricewaterhouseCoopers Oy has verified that this statement has been provided and that the description of the internal control and risk management systems pertaining to the financial reporting process is consistent with the financial statements of the company.
The Corporate Governance Code and the Corporate Governance Code 2020 are available in full at www.cgfinland.fi.