Impact asssesment of emergency market invervention measures to tackle high energy prices - with a focus on the Nordic wholesale market

Report 2023/21

Andreas Stranden Hoel-Holt, Orvika Rosnes, Åsmund Sunde Valseth og Rolf Golombek

Impact asssesment of emergency market invervention measures to tackle high energy prices - with a focus on the Nordic wholesale market

Category	Reports
Sub-Categories	Power and energy Taxes and public economics
Year	2023
Report Number	21
Author(s)	Andreas Stranden Hoel-Holt Orvika Rosnes Åsmund Sunde Valseth Rolf Golombek
Download	file_download (13.8 MB)
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Conte n t	
3	Pre fa ce	
4	A ck n o w le d gem en ts	
5	E xe cu tiv e S um mary	
16	1. I n tro d uctio n	
17	1.1 . O rg a niz a tio n o f th e r e p ort	
1 8	1.2 . M eth od s	
18	1.3 . B ackg ro un d : H ig h p ric e s in la te s u m mer a nd e a rly a utu m n o f 20 22	
2 0	2 . I m ple m en ta tio n o f e m erg en cy m ea su re s in t h e N ord ic c o un trie s	
23	2 .1 . M ea su re 1 : R ed uctio n in e le ctric it y c o n su m ptio n	
34	2 .2 . M ea su re 2 : C ap o n m ark e t r e ve n ues	
4 6	2.3 . M ea su re 3 : S olid arit y c o ntrib utio n f ro m t h e f o ssil f u el s e cto r	
5 2	3. I m pa cts o f t h e r e ve n ue c a p	
54	3.1 . S hort -t e rm im pacts o f re ve n ue c a p : I n ce n tiv e s t o p ro d uce	
6 7	3.2 . L on g -t e rm im pacts o f re ve n ue c a p : I n ce n tiv e s t o in ve st	
6 9	3.3 . I m pacts o f th e t e m pora ry t a x o n p ro	
7 1	3.4 . I m pacts o n c o m petit iv e n ess b etw een c o untrie s	
73	3 .5 . C on clu d in g r e m ark s a b out t h e r e ve n ue c a p a nd t h e p ro	
7 5	4 . E ffe cts o f d em and r e d uctio n m ea su re s	
77	4 .1 . E le ctric it y c o n su m ptio n in w in te r 2 22– 20 23	
8 1	4.2 . E le ctric it y c o n su m ptio n in S w ed en	
8 3	4.3 . E le ctric it y c o n su m ptio n in F in la nd	
8 5	4.4 . E le ctric it y c o n su m ptio n in D en m ark	
8 7	5. E ffe cts o f t h e f o ssil f u el s o lid arit y c o ntrib utio n	
8 9	6. C onclu sio ns	
90	6.1 . M ea su re s t o r e d uce e le ctric it y d em and	
91	6.2 . R eve n ue c a p a nd p ro	
9 3	6.3 . S olid arit y c o ntrib utio n f ro m f o ssil f u el s e cto r	
9 4	A bout t h is p ub lic a tio n
This p ub lic a tio n is a ls o a va ila ble o nlin e in a w eb -a cce ssib le v e rs io n a t:
h tt p s:/ / p ub .n o rd en .o rg /n o rd ic e n erg yre se a rc h 20 23 -0 4/	
2

Pre fa ce
The e vo lu tio n o f t h e c o m mon N ord ic e le ctric ity m ark e t is a s ig ni
im ple m en ta tio n o f t h e v is io n o f t h e N ord ic C ountrie s, w here in t h e N ord ic r e g io n
aim s t o b eco m e t h e w orld 's m ost s u sta in able a nd in te g ra te d r e g io n.  
S ecu re , a ffo rd able , a nd c le a n e n erg y is f u n d am en ta l to r e a liz ing t h is . A s r e co g niz ed
b y t h e N ord ic E le ctric it y M ark e t G ro up , e sta b lis hed u n d er t h e N ord ic C oun cil of
M in is te rs , t h e N ord ic e le ctric it y m ark e t h o ld s s ig ni
in stru m en t f o r e n su rin g a r e silie n t s e cu rit y o f s u p ply a nd h ig h-q ua lit y e le ctric ity
se rv ic e t o c u sto m ers , a ll w hile m ain ta in in g c o m petit iv e a nd a ffo rd able e le ctric ity
pric e s. I n a ddit io n, e n erg y m ark e ts , s u ch a s t h e e le ctric ity m ark e t, c a n h elp t o
e n su re e f
sy ste m s. 
Y et, in v ie w o f t h e r e ce n t y e a r's u n p re ce d en te d e n erg y p ric es a nd g eo p olit ical ris k,
th e e le ctric it y p ric e s s u rg ed a nd e xp ose d t h e n eed f o r a r e vie w o f r e silie nt e n erg y
in fra stru ctu re m ea su re s. A s a r e sp onse , t h e E uro p ea n C om missio n c re a te d t h e J u st
E nerg y T ra nsit io n F un d a nd a t o olb ox o f e m erg en cy in te rv e n tio n m ea su re s f o r
a ctio n a nd s u p port a im ed a t c o nsu m ers a nd in dustry . 
T his r e p ort d elv e s in to t h e N ord ic a ppro a ch es t o im ple m en tin g t h e E U 's e m erg en cy
in te rv e n tio n m ea su re s a im ed a t t a ck lin g t h e e n erg y c ris is a nd h ig h e n erg y p ric es
d urin g t h e w in te r o f 2 22 /2 23 . S im ult a neo usly , r e a ders a re p re se n te d w ith a
t h eo re tic a l e co no m ic a na ly sis o f t h e im plic atio ns r e su lt in g f ro m t h ese
in te rv e n tio ns. 
T he r e p ort s u p ple m en ts o th er s tu d ie s b y N ord ic E nerg y R ese a rc h . L a te st, t h e
re p ort s “	T he N ord ic E nerg y T rile m ma - S ecu rit y o f S up ply , P ric es a nd t h e J u st	
T ra nsit io n”	 a s w ell a s “	I n	
a nd B alt ic c o untrie s”	. A ll r e p ort s a na ly sin g t h e r e ce n t y e a rs e n erg y p ric e r is e,	
m ea su re s, a nd c o nse q uen ce s.   
I t is m y h o p e t h a t t h ese r e p ort s w ill c re a te k n ow le d ge-b ase d f o un d atio n f o r
en lig hte n in g a nd s h a rin g o f b est p ra ctic e s t o e n su re a r e silie nt, s u sta in able , a nd
in te g ra te d N ord ic e n erg y r e g io n o f t o m orro w . 
K la us S ky tt e	 	
C EO , N ord ic E nerg y R ese a rc h	
3

Ack n o w le d gem en ts
This p ub lic a tio n w as f u n d ed b y t h e N ord ic C oun cil of M iniste rs . V is ta A na ly se w as
co m mis sio ned t o p erfo rm t h is s tu d y b y N ord ic E nerg y R ese a rc h ( N ER ) o n b eh a lf o f
th e E le ctric it y M ark e t G ro up ( E M G) u n d er t h e N ord ic C oun cil of M iniste rs . M aj
D ang T ro ng a t N ord ic E nerg y R ese a rc h w as t h e c o ord in ato r o f t h e p ro je ct.
T e a m a t V is ta A na ly se
T he p ro je ct t e a m c o nsis te d o f c o nsu lt a nts a nd r e se a rc h ers f ro m V is ta A na ly se a nd
th e R agna r F ris c h C en tre f o r E co no m ic R ese a rc h ( F ris ch C en tre ). O rv ik a R osn es
(V is ta A na ly se ) w as t h e p ro je ct m ana ger. T he r e st o f t h e c o re t e a m c o m pris ed
A nd re a s H oel- H olt ( V is ta A na ly se ), Å sm un d S un d e V als eth ( V is ta A na ly se ) a nd R olf
G olo m bek ( F ris c h C en tre ). H aako n V en nem o ( V is ta A na ly se ) w as r e sp onsib le f o r
in te rn a l q ua lit y c o ntro l.
S te erin g g ro up
The s tu d y w as s u p erv is e d a nd g uid ed b y r e p re se n ta tiv es f ro m t h e E le ctric ity
M ark e t G ro up .
C om men ts a nd q uestio ns a re w elc o m e a nd s h o uld b e a ddre sse d t o O rv ik a R osn es,
e -m ail: 	. F or in q uir ie s r e g a rd in g t h e p re se n ta tio n o f	
re su lt s o r d is trib utio n o f t h e r e p ort , p le ase c o nta ct N ord ic E nerg y R ese a rc h .	
o rv ik a .r o sn es@ vis ta -a na ly se .n o	
A ddit io na l m ate ria ls , p re ss c o ve ra ge, p re se n ta tio ns e tc . c a n b e f o un d
a t.	.	w ww.n o rd ic e n erg y.o rg	
P ro ofre a din g
The r e p ort w as p ro ofre a d b y S crib br.
D is c la im er
The o p in io ns e xp re sse d in t h is p ub lic a tio n a re t h o se o f t h e c o nsu lt ants . T hey d o n ot
n ece ssa rily r e
R ese a rc h , o r a ny e n tit ie s t h ey r e p re se n t. T he in div id ua ls a nd o rg a niz atio ns t h a t
co ntrib ute d t o t h is p ub lic a tio n a re n ot r e sp onsib le f o r a ny ju d gem en ts h ere in .	
4

Aeria l v ie w o f w in d m ills in P ori, F in la nd . 
P hoto : iS to ck
E xe cu tiv e S um mary
The C oun cil o f t h e E U in tro d uce d e m erg en cy in te rv e n tio n m ea su re s t o a ddre ss h ig h
en erg y p ric e s in O cto b er 2 22 . W e d esc rib e t h e im ple m en ta tio n o f t h ese m ea su re s
in D en m ark , F in la nd a nd S w ed en a nd a na ly se t h e im pact o f t h e m ea su re s o n t h e
N ord ic p ow er m ark e t.
E le ctric it y c o nsu m ptio n, b oth d urin g p ea k h o urs a nd in t o ta l, w as r e d uce d in t h e
w in te r o f 2 22– 20 23 in t h e t h re e c o un trie s. H ow eve r, w e c a nnot a tt rib ute t h is
d eve lo p m en t s o le ly t o t h e e m erg en cy m ea su re s. E le ctric ity p ric es w ere h ig her t h a n
in p re vio us w in te rs , s o it is r e a so na ble t o a ssu m e t h a t a t le ast p art o f t h e r e d uctio n
is a tt rib uta ble t h ere to . I n a ddit io n, t h e w inte r w as m ild er t h a n u su a l. M ore o ve r, it is
lik e ly t h a t in cre a se d a w are n ess o f t h e s it u a tio n in t h e p ow er m ark e t a ls o
co ntrib ute d t o r e d ucin g d em and .
The m ea su re s t a rg etin g e le ctric it y p ro d uce rs – t h e r e ve n ue c a p in D en m ark a nd
S w ed en a nd t h e p ro
in ce n tiv e s, t h o ug h t h ey m ay d is to rt lo ng -t e rm in ce n tiv es t o in ve st. T o a vo id
n eg a tiv e im pacts o n in ve stm en ts , it is im port a nt t o e m pha siz e t h a t t h ese
m ea su re s a re t e m pora ry , o ne-t im e m ea su re s t h a t w ere in tro d uce d a s a r e sp onse t o
a n e xtra ord in a ry c ris is .	
5

Back g ro un d a nd a im o f t h e s tu d y
The C oun cil o f t h e E U p ro p ose d t h e R eg ula tio n o n a n e m erg en cy in te rv e n tio n t o
a ddre ss h ig h e n erg y p ric e s in E uro p e ( h ere a ft e r “ t h e C R”) o n 1 4 S ep te m ber 2 22 .
T he C R w as a dop te d 6 O cto b er 2 22 a nd c a m e in to e ffe ct 8 O cto b er 2 22 .
T he a im o f t h e C R w as t o m it ig a te t h e e ffe cts o f h ig h e n erg y p ric es o n e n erg y
co nsu m ers t h ro ug h t h re e e xc e p tio na l, t a rg ete d a nd t im e-lim ited m ea su re s:	
R ed uctio n in e le ctric it y d em and
C ap o n m ark e t r e ve n ues f o r in fra m arg in a l te ch no lo gie s in e le ctric ity
gen era tio n
S olid arit y c o ntrib utio n f ro m t h e f o ssil f u el se cto r	
T here w as s o m e 
th is s tu d y w as t o d esc rib e h ow t h e e m erg en cy m ea su re s o utlin ed in t h e C R w ere
im ple m en te d in t h e N ord ic c o untrie s. O ur f o cu s w as o n D en m ark , F in la nd a nd
S w ed en . I c e la nd a nd N orw ay a re n ot E U m em bers a nd t h us d id n ot im ple m en t t h e
m ea su re s o f t h e C R. C ha pte r 2 is d evo te d t o a d esc rip tio n o f t h e im ple m en ta tio n o f
th e m ea su re s.
T he s e co nd a im w as t o a sse ss t h e s h o rt - a nd lo ng -t e rm im pacts o f t h e m ea su re s
o n t h e N ord ic w ho le sa le p ow er m ark e t. T he s h o rt -t e rm im pacts a re r e la te d t o
in ce n tiv e s t o p ro d uce , w hile t h e lo ng -t e rm im pacts a re r e la te d t o in ce n tiv es t o
in ve st in n ew c a pacit y. C ha pte rs 3 – 5 a d dre ss t h e im pacts o f t h e m ea su re s.
T a ble S .1 s u m mariz e s t h e m ea su re s o utlin ed in t h e C R a nd h ow t h ey w ere
im ple m en te d in D en m ark , F in la nd a nd S w ed en .	
6

Ta ble S .1 . O ve rv ie w o f t h e im ple m en ta tio n o f t h e e m erg en cy m ea su re s in t h e N ord ic c o un trie s	
Th e C oun cil R eg ula tio n	S w ed en	D en m ark	F in la nd	
R ed uctio n in e le ctric it y
d em and	
M and ato ry 5 % r e d uctio n in
e le ctric it y c o nsu m ptio n d urin g
p ea k lo a d h o urs b etw een 1
D ece m ber 2 22– 31 M arc h
2 23 .
V olu nta ry 1 % r e d uctio n o f
to ta l e le ctric it y c o nsu m ptio n
b etw een 1 N ove m ber 2 22– 31
M arc h 2 23 .
F le xib le im ple m en ta tio n a nd
so m ew ha t 
o f p ea k h o urs .	
C onsu m ptio n 
p ro cu re m en t s c h em e.
E nerg y s a vin g s in 1 9 8
p ub lic in stit u tio ns.
In fo rm atio n c a m paig n.	
E nerg y s a vin g s in t h e
sta te a nd p ub lic
s e cto r.
E nerg y-s a vin g
ca m paig ns f o r
ho use h o ld s a nd
b usin esse s.	
V olu nta ry p ow er
sy ste m s u p port
p ro ce d ure .
E nerg y-s a vin g
ca m paig n “ D ow n a
d eg re e”.	
C ap o n m ark e t r e ve n ues	18 E U R/M W h c a p o n m ark e t
re ve n ues o b ta in ed f ro m t h e
sa le o f e le ctric it y p ro d uce d
fro m s p eci
1 D ece m ber 2 22– 30 J u n e
20 23 .
 	
18 E U R/M W h c a p o n m ark e t
re ve n ues o b ta in ed f ro m t h e
sa le o f e le ctric it y p ro d uce d
fro m s p eci
1 M arc h 2 23 – 30 J u n e 2 23 .
Ta x a pplie d t o 9 % o f h o urly
r e a liz e d r e ve n ues e xc e ed in g
th e c a p.	
18 E U R/M W h c a p o n m ark e t
re ve n ues o b ta in ed f ro m t h e
sa le o f e le ctric it y p ro d uce d
fro m s p eci
1 D ece m ber 2 22– 30 J u n e
20 23 .
Ta x a pplie d t o 9 % o f
m onth ly r e a liz e d r e ve n ues
exc e ed in g t h e c a p.	
A ddit io na l 3 % t a x o n
ele ctric it y c o m panie s’ p ro
in 2 23 a bove “ o rd in a ry ”
re tu rn o n e q uit y.
T he t a x is le vie d o n e le ctric it y
p ro d uce rs a nd , u n d er c e rt a in
c o nd it io ns, r e ta ile rs .	
S olid arit y c o ntrib utio n f ro m
th e f o ssil f u el s e cto r	
The f o ssil f u el s e cto r is le vie d
a t a x o f 3 3% o n t a xa ble
p ro
a ve ra ge p ro
p re ce d in g y e a rs b y 2 % .
Applie s t o 
a nd /o r 2 23 .	
T he f o ssil f u el s e cto r is le vie d
a t a x o f 3 3% o n t a xa ble
p ro
a ve ra ge p ro
p re ce d in g y e a rs b y 2 % .	
The f o ssil f u el s e cto r is le vie d
a t a x o f 3 3% o n t a xa ble
p ro
a ve ra ge p ro
p re ce d in g y e a rs b y 2 % .	
The f o ssil f u el s e cto r is le vie d
a t a x o f 3 3% o n t a xa ble
p ro
a ve ra ge p ro
p re ce d in g y e a rs b y 2 % .	
7

Dem and r e d uctio n m ea su re s in t h e N ord ic c o un trie s
The C oun cil R eg ula tio n s tip ula te d t w o d em and -re d uctio n m ea su re s:	
A m and ato ry 5 % r e d uctio n in c o nsu m ptio n d urin g p ea k lo ad h o urs
A v o lu nta ry 1 % r e d uctio n t a rg et in t o ta l e le ctric ity c o nsu m ptio n	
One o f t h e k e y is su es t h e a uth o rit ie s h a d t o d ete rm ine w as w hic h h o urs s h o uld b e
co nsid ere d p ea k lo a d h o urs . I n S w ed en , p ea k lo ad h o urs w ere d e
ho urs e a ch m orn in g a nd t h re e h o urs e a ch a ft e rn o on o n w eekd ays. I n F in la nd a nd
D en m ark , p ea k h o urs w ere d e
th e a ft e rn o on o n w eekd ays. T he c o m pa ris on p erio d f o r t h e p ea k h o ur c o nsu m ptio n
re d uctio n w as t h e m onth ly c o nsu m ptio n a s f o re ca ste d b y t h e t ra nsm is sio n s y ste m
o p era to rs ( T S O s), w hile t h e r e fe re n ce p erio d f o r t h e t o ta l co nsu m ptio n r e d uctio n
was t h e a ve ra ge c o nsu m ptio n in t h e c o rre sp ond in g m onth s in t h e 
20 17 – 20 22 .
A ll t h re e c o untrie s in tro d uce d m ea su re s t o r e d uce d em and ; h ow eve r, t h ese w ere
in tro d uce d b efo re t h e C R. M ost o f t h ese m ea su re s c a n b e c h a ra cte riz ed a s
co m mand -a nd -c o ntro l m ea su re s a nd in fo rm atio n c a m paig ns. F or in sta nce , p ub lic
in stit u tio ns in S w ed en a nd D en m ark a re r e q uir ed t o im ple m en t e n erg y-s a vin g
m ea su re s, s u ch a s r e d ucin g in d oor t e m pera tu re s in b uild ings a nd s w it c h in g o ff
lig hts , v e n tila tio n, s c re en s, e le ctro nic d evic e s, e tc ., w here p ossib le. M ore o ve r, t h ere
a re in fo rm atio n c a m paig ns, s u ch a s “ E ve ry k ilo w att -h o ur c o unts ” in S w ed en a nd
“D ow n a D eg re e” in F in la nd , a ppris in g p ub lic in stit u tio ns, b usin esse s a nd
ho use h o ld s a bout e n erg y s a vin g p ossib ilit ies.
In a ddit io n t o in fo rm atio n c a m paig ns a nd c o m mand -a nd -c o ntro l m ea su re s,
d em and r e d uctio n s c h em es w ere in tro d uce d b y t h e T S O s in S w ed en a nd F in la nd .	
In S w ed en , a 
20 22 . U nd er t h is s c h em e, la rg e c o nsu m ers w ere c o m pen sa te d f o r s h if tin g
th eir p ow er d em and f ro m p ea k lo a d h o urs t o o th er p erio ds. I n t o ta l, 7 5 M W
were p ro cu re d u n d er t h e s c h em e. I n s p it e o f it s n a m e, t h e s c h em e w as n ot
p art ic u la rly 
co nsu m ptio n d urin g c e rt a in h o urs , r e g a rd le ss o f t h e s it u a tio n in t h e p ow er
m ark e t. T he s c h em e w as c lo se d in F eb ru a ry 2 23 , a s t h e t o ta l re d uctio n o f
ele ctric it y d em and in t h e r e st o f t h e m ark e t w as s u f
p ro cu re m en t s c h em e u n nece ssa ry .
In F in la nd , F in g rid in tro d uce d a v o lu nta ry p ow er s y ste m s u p port p ro ce d ure .
F in g rid e n te re d in to a gre em en ts w it h a bout 5 c o m panie s a nd p ub lic e n tit ie s
th a t a gre ed t o r e d uce t h eir d em and in a p ow er s h o rt a ge. I f t h e r is k o f a	
8

bla cko ut o r b ro w no ut o cc u rs , F in g rid w ill co nta ct t h em b y t e xt m essa ge t h e
d ay b efo re t o w arn t h em a bout t h e r is k . T he c o m panie s a nd p ub lic e n tit ie s
w ill o nly b e a sk e d t o a ctiv a te t h e e m erg en cy m ea su re s w hen t h ere is a r e a l
need . T hey a re n ot c o m pen sa te d f o r t h is o th er t h a n t h ro ug h p ric e e ffe cts in
t h e m ark e t. F in g rid h a s p oin te d o ut t h a t a n im port a nt p art o f t h e s c h em e is
t h e id en ti
o f t h e p art ic ip atin g c o m panie s.	
D ata h a ve r e ve a le d t h a t e le ctric it y c o nsu m ptio n w as r e d uce d in t h e w inte r m onth s
of 2 22– 20 23 in a ll t h re e c o untrie s. P ea k-h o ur c o nsu m ptio n w as r e d uce d w ell
b eyo nd t h e t a rg et o f 5 % : 8 .3 % in F in la nd , 9 .1 % in S w ed en a nd 1 .2 % in D en m ark .
F ig ure S .1 s h ow s t h e r e d uctio n f o r e a ch m onth . T he r e d uctio n o f t o ta l e le ctric ity
co nsu m ptio n h a s a ls o b een c o nsid era ble in a ll th re e c o untrie s ( s e e F ig ure S .2 ),
e sp ecia lly in J a nua ry a nd F eb ru a ry .	
D ece m berJ a nua ryF eb ru a ryM arc h	
0 %2%4 %6%8 %10 %12 %14 %	S w ed en	Fin la n d	D enm ark	T a rg et	
F ig ure S .1 . A ve ra ge c o nsu m ptio n r e d uctio n d urin g p ea k h o urs , D ece m ber 2 22–
F eb ru a ry 2 23
S ourc e :  V is ta A na ly se , b ase d o n r e p ort s f ro m t h e T S O s	
9

Nove m berD ece m berJ a nua ryF eb ru a ryM arc h	
0 %2%4 %6%8 %10 %12 %14 %	S w ed en	Fin la n d	D enm ark	T a rg et	
F ig ure S .2 . T o ta l c o nsu m ptio n r e d uctio n, N ove m ber 2 22– M arc h 2 23	 	
S ourc e :  V is ta A na ly se , b ase d o n r e p ort s f ro m t h e T S O s
Note : F ig ure s h a ve b een t e m pera tu re -a dju ste d f o r S w ed en a nd F in la nd
(D ece m ber– F eb ru a ry ).
A t h o ro ug h a na ly sis o f t h e d if fe re n t m ea su re s’ im pacts o n c o nsu m ptio n is o uts id e
th e s c o p e o f t h is p ro je ct, a s d ata b eca m e a va ila ble o nly t o w ard s t h e e n d o f t h e
a ssig nm en t. T here fo re , w e c a nnot d is tin guis h b etw een t h e e ffe cts o f in div id ua l
m ea su re s a nd t h e e ffe cts o f p ric e s. O n a ve ra ge, e le ctric ity p ric es w ere s lig htly
b elo w 2 5 E U R/M W h in D en m ark , F in la nd a nd S outh ern S w ed en in D ece m ber 2 22
a nd a ro un d 1 E U R/M W h in J a nua ry 2 23 . M ore o ve r, t h e w inte r o f 2 22– 20 23
w as r e la tiv e ly m ild , c o ntrib utin g t o lo w er d em and in F in la nd a nd S w ed en . H ow eve r,
t h ere a re t w o in te re stin g p oin ts t o n ote :	
A la rg e r e d uctio n in d em and o cc u rre d in J a nua ry , w hen p ric es w ere
s ig ni
re d uctio n, w hic h m ay h a ve b een d ue t o e it her m ore in fo rm atio n b eco m ing
ava ila ble a nd in cre a se d a w are n ess o f t h e p ric es o r t o m ore p ossib ilit ies f o r
re d ucin g d em and o ve r t im e. I n a ddit io n, t o ta l e le ctric ity c o nsu m ptio n w as
re d uce d t h e m ost in D en m ark , w here e le ctric ity d em and is in dep en d en t o f
te m pera tu re .	
10

The r e d uctio n o f d em and in p ea k h o urs in S w ed en w as c o nsid era bly la rg er
th a n t h e 7 5 M W ( c o rre sp ond in g t o le ss t h a n .4 % o f p ea k d em and ) p ro cu re d
b y t h e 
co nsu m ptio n in t h e r e st o f t h e e co no m y w as s ig ni	
R eve n ue c a p a nd t a x o n p ro fit s
The s e co nd e m erg en cy m ea su re in t h e C R in vo lv e d a c a p o n r e ve n ues f ro m
ele ctric it y p ro d uctio n: 9 % o f r e ve n ues e xc e ed in g 1 8 E U R/M W h w ere t a xe d . T his
a pplie d t o m ost e le ctric it y p ro d uce rs w ith m arg in al co sts lo w er t h a n t h e m ark e t
p ric e ( t h e s o -c a lle d in fra m arg in a l p ro d uce rs ). T he r e ve n ue c a p a pplie d u ntil 30 J u n e
20 23 .
T he im ple m en ta tio n o f t h e r e ve n ue c a p w as a lm ost id en tic al in S w ed en a nd
D en m ark a nd m atc h ed t h e r e q uir e m en ts o f t h e C R. T he m ain d if fe re n ce w as t h a t
in S w ed en , t a x w as c a lc u la te d b ase d o n t h e h o urly d ay-a hea d p ric e, w hile in
D en m ark , t h e p ric e o b ta in ed in t h e d if fe re n t m ark e ts ( d ay-a hea d, in tra day a nd
b ala ncin g m ark e ts ) w as u se d , a nd t h e t a x w as c a lc ula te d a s a m onth ly a ve ra ge.
H ed gin g a gre em en ts w ere t a ke n in to a cco unt in b oth c o untrie s; t h us, t h e a ctu a l
pric e t h a t t h e p ro d uce r r e ce iv e d w as t h e t a x b ase . I n a ddit io n, in S w ed en , t h e t a x
applie d t o r e ve n ues o b ta in ed b etw een 1 M arc h 2 23 a nd 3 J u n e 2 23 .
B oth c o untrie s u se d t h e e xe m ptio n p ossib ilit ies a va ila ble in t h e C R. T here w as a
s p ecia l c a p c o rre sp ond in g t o 1 .3 t im es p ro d uctio n c o sts f o r s o m e h ig h-c o st
p ro d uce rs in S w ed en . I n D en m ark , t h e a ctu a l fu el p ric es o f h ig h-c o st t e ch no lo gie s,
s u ch a s b io m ass- a nd o il-
g a s p ric e s, t h e f u el p ric e s o f t h ese p la nts r e ce n tly in cre a se d .
In F in la nd , a p ro
t e m pora ry t a x o f 3 % o n p ro
re tu rn o f 1 % o n e q uit y. T his t a x a pplie s o nly t o 2 23 ; it is t o b e p ha se d o ut a ft e r
20 24 .	
11

Im pa cts o f t h e r e ve n ue c a p o n t h e N ord ic w ho le sa le
p ow er m ark e t
W e a sse sse d t h e s h o rt - a nd lo ng -t e rm im pacts o f t h e r e ve n ue c a p o n t h e w ho le sa le
ele ctric it y m ark e ts . T he m ain q uestio n w as w heth er t h e r e ve n ue c a p o n
in fra m arg in a l t e ch no lo g ie s w ould a ffe ct t h e in ce n tiv es o f p ow er m ark e t
p art ic ip ants . T he s h o rt -t e rm im pacts w ere r e la te d t o in ce n tiv es t o p ro d uce , w hile
th e lo ng -t e rm im pacts w ere r e la te d t o in ce n tiv es t o in ve st in n ew c a pacit y.
S ho rt -t e rm im pa cts
O ur m ain 	re ve n ue c a p	 in S w ed en a nd D en m ark in clu d e t h e	
fo llo w in g :	
In p rin cip le , in fra m arg in a l p ro d uce rs ’ in ce n tiv es t o p ro d uce a re n ot a ffe cte d
b y a r e ve n ue c a p: p ro d uce rs w ill p ro d uce a s lo ng a s t h eir m arg in al re ve n ues
a re la rg er t h a n t h eir m arg in a l c o sts . T a xin g o nly 9 % o f r e ve n ues e xc e ed in g
18 E U R/M W h c o ntrib ute s t o m ain ta in ing in ce n tiv es t o p ro d uce .
S pecia l p ro vis io ns f o r h ig h-c o st p ro d uce rs ( b io m ass a nd o il-
p la nts ) e n su re t h a t t h eir in ce n tiv e s a re p re se rv e d , t h us e n su rin g s e cu rit y o f
su p ply .
T he w ay t h e t a x w as im ple m en te d in S w ed en , w ith a d ay-a hea d p ric e a s a
r e fe re n ce p ric e a nd h o urly p ric e s f o r s e tt le m en ts , d oes n ot in
p ro d uce rs ’ s h o rt -t e rm in ce n tiv e s. T he im pacts o f u sin g t h e m onth ly a ve ra ge
p ric e , a s w as d one in D en m ark , a re n ot s tra ig htfo rw ard , b ut t h e in ce n tiv es
w ere p re se rv e d in D en m ark a s w ell.
T he a ctu a l p ric e s o b ta in ed b y t h e p ro d uce r f o rm ed t h e t a x b ase . H en ce , if a
p ro d uce r h a d h ed gin g a gre em en ts o r p ow er p urc h a sin g a gre em en ts ( P PA s)
a nd d id n ot e a rn a m ark e t p ric e e xc e ed in g 1 8 E U R/M W h, t h e t a x d id n ot
a pply . T he s h a re o f h ed gin g a gre em en ts in t h e N ord ic m ark e t is r e la tiv ely
h ig h. I n p art ic u la r, w in d a nd s o la r p ro d uce rs a re h ed ged t o a la rg e d eg re e.
T here fo re , a la rg e s h a re o f t h e p ro d uctio n w as n ot in
e ve n w hen s p ot p ric e s w ere h ig h.
U sin g t h e m onth ly a ve ra ge p ric e a s t h e t a x b ase is lik ely t o r e d uce t h e
a dm in is tra tiv e c o sts o f t h e t a x. H ow eve r, it a ls o r e d uce d t a x r e ve n ue, a s
illu stra te d in F ig ure S .3 . R eca ll t h a t t h e t a x in S w ed en a pplie d o nly t o
re ve n ues o b ta in ed b etw een M arc h –J u n e 2 23 .	
12

Fig ure S .3 . H ourly a nd m onth ly a ve ra ge p ric e s in D en m ark ( D K1, d ay-a hea d)
S ourc e :  V is ta A na ly se , b ase d o n d ata f ro m E N TS O -E
O ur m ain 	p ro fit t a x	 in F in la nd in clu d e t h e f o llo w in g :	
A p ro
m axim iz in g 
th e p ro
b efo re a nd o ffe r t h e s a m e s u p ply in t h e s a m e m ark e ts . 
A p ro
re ve n ue c a p.
The p re se n t p ro
t a x in D en m ark a nd S w ed en , a s t h e p ro
e q uiv a le n t t o a r e ve n ue t a x f o r e le ctric it y p ric es o f 2 8 E U R/M W h a nd
a pplie s t o a lo ng er p erio d . W hile t h is d oes n ot in
in ce n tiv e s, it in
in ve stm en t d ecis io ns.	
L ong -t e rm im pa cts
T he p ote n tia l lo ng -t e rm im pacts r e la te t o in ce n tiv es t o in ve st. I n ve stm en t d ecis io ns
d ep en d o n e xp ecta tio ns a bout f u tu re p ric es a nd c a sh 
q uestio n is h ow t h ese c ris is m ea su re s in
w heth er in ve sto rs b elie ve t h a t p olic y m ake rs w ill im ple m en t a r e ve n ue c a p o r p ro
t a x ( o r o th er e xtra ord in a ry m ea su re s) w hen eve r p ric es a re p art ic u la rly h ig h. I f t h ey
b elie ve t h a t a s im ila r t a x w ill b e in tro d uce d in t h e f u tu re , t h e e xp ecte d a ft e r- t a x
pro	
13

re d uce d a s w ell. T o m ain ta in in ce n tiv e s t o in ve st, it is im port a nt t o e m pha siz e t h a t
th e m ea su re s w ere in tro d uce d a s a r e sp onse t o a n e xtra ord in ary c ris is a nd n ot a s
re g ula r t a xe s.
E le ctric it y p ric e s a re m uch h ig her n ow t h a n t h ey w ere p rio r t o 2 21. I n ve stm en ts
h a ve b een p la nned a nd c a rrie d o ut a t m uch lo w er p ric es t h a n t h o se o f t o d ay.
H ow eve r, u n ce rt a in ty a bout m ark e t c o nd it io ns in g en era l – p ric es a nd t a xe s – m ay
ca use s o m e in ve sto rs t o p ostp one m akin g d ecis io ns.
It is w ort h n otin g t h a t d if fe re n ce s in t h e im ple m en ta tio n o f t h e m ea su re s m ay le ad
to c h a ng es in c o m petit iv e n ess b etw een t h e c o untrie s. T his c o uld h a ve lo ng -t e rm
im pacts , s u ch a s in ve stm en ts b ein g “ m ove d ” f ro m o ne c o untry t o a noth er. A ga in ,
th e n eg a tiv e e ffe cts o n in ve stm en t c a n b e m itig ate d b y c o m mun ic atin g t h a t t h ese
c ris is m ea su re s a re u n lik e ly t o b e u se d a ga in .
Hen ce , if in ve sto rs b elie ve t h a t t h e c u rre n t e m erg en cy m ea su re s a re e xc e p tio na l
and t im e-lim it e d c ris is m ea su re s in d eed , lo ng -t e rm in ce n tiv es t o in ve st s h o uld n ot
b e a ffe cte d . T here fo re , it is c ru cia l t h a t t h e a uth o rit ie s e m pha siz e t h e t e m pora ry ,
o ne-t im e n a tu re o f t h ese e xtra ord in a ry m ea su re s.
S olid arit y c o ntrib utio n f ro m t h e f o ssil f u el s e cto r
The t h ir d m ea su re is t h e s o lid arit y c o ntrib utio n f ro m t h e f o ssil fu el se cto r. T his
in vo lv e s a m and ato ry c o ntrib utio n o f a t le ast 3 3% o f t h e t a xa ble p ro
y e a rs 2 22 a nd /o r 2 23 t h a t a re h ig her t h a n 2 % o f a ve ra ge p ro
p re ce d in g 
na tu ra l g a s, c o a l a nd r e
t h e t h re e c o untrie s o f t h is s tu d y, a s n o s u ch c o m panie s w ere id en ti
a nd o nly a f e w r e le va nt c o m panie s w ere id en ti
T he f o ssil f u el s o lid arit y c o ntrib utio n is , in e sse n ce , a n e xtra ord in ary t a x o n t h e
p ro
in ce n tiv e s t o p ro d uce , b ut it m ay in
in
f u el s e cto r h a ve a rg ued t h a t t h e s o lid arit y c o ntrib utio n m ay r e d uce in ve stm en ts in
g re en t e ch no lo g ie s. H ow eve r, t h e p ro
b eca use o f t h e t a x o n f o ssil f u el c o m panie s. O th er c o m panie s w ill inve st in g re en
te ch no lo g ie s a s lo ng a s t h ese in ve stm en ts a re p ro
in ve stm en ts in t h e e co no m y. M ore o ve r, a s s ta te d , if c o m panie s a re c o nvin ce d t h a t
th e t a x is a t e m pora ry a nd e xtra ord in a ry m ea su re , in ce n tiv es t o in ve st w ill not b e
affe cte d .	
14

Conclu sio ns
The N ord ic e le ctric it y m ark e t h a s r e sp ond ed r e la tiv ely w ell to t h e c u rre n t c ris is. T he
in cre a se d p ric e s, t o g eth er w it h in fo rm atio n a nd a w are n ess c a m paig ns a nd o th er
m ea su re s, r e su lt e d in lo w er d em and in t h e 2 22– 20 23 w inte r. T he r e d uctio n in
d em and d urin g p ea k h o urs in S w ed en w as c o nsid era bly la rg er t h a n t h e 7 5 M W
pro cu re d b y t h e 
th e r e st o f t h e e co no m y w as s ig ni
d is tin g uis h b etw een t h e e ffe cts o f t h e s p ecia l m ea su re s a nd t h e e ffe cts o f p ric es.
T he r e ve n ue c a p o n in fra m arg in a l t e ch n o lo gie s, a s im ple m en te d in D en m ark a nd
S w ed en , d oes n ot d is to rt s h o rt -t e rm in ce n tiv es t o p ro d uce t o a s ig ni
H ow eve r, a dm in is tra tiv e c o sts m ay b e h ig h. C onsid erin g t h a t p ow er p ric es h a ve
b een m uch lo w er in 2 23 t h a n t h ey w ere in t h e s e co nd h a lf o f 2 22 , t h e a ctu a l ta x
re ve n ue f ro m t h ese m ea su re s is r e la tiv e ly lo w.
A p ro
In a ddit io n, t h e a dm in is tra tiv e c o sts o f a p ro
D if fe re n t t a x s c h em es m ay in
c o untrie s. I n t h e lo ng t e rm , t h is c o uld le a d t o in ve stm en ts b ein g “ m ove d ” f ro m o ne
co untry t o a noth er.
T he m ain p ote n tia l im pacts o f t h e e m erg en cy m ea su re s r e la te t o in ce n tiv es t o
in ve st in n ew p ro d uctio n c a pacit y. I f in ve sto rs b elie ve t h a t t h e c u rre n t e m erg en cy
m ea su re s a re in d eed e xc e p tio na l, t a rg ete d a nd t im e-lim ited , a s s ta te d in t h e
C oun cil R eg ula tio n, t h e lo ng -t e rm in ce n tiv es t o in ve st s h o uld n ot b e a ffe cte d . I f , o n
th e o th er h a nd , t h ey e xp ect n ew c ris is m ea su re s t o b e im ple m en te d w hen eve r
p ric e s a re e xc e p tio na lly h ig h, t h ey m ay h esit a te t o in ve st. H en ce , it is c ru cia l th a t
th e a uth o rit ie s e m pha siz e t h e t e m pora ry , o ne-t im e n a tu re o f t h ese e xtra ord in ary
m ea su re s – a s a ls o s ta te d in t h e C oun cil Reg ula tio n.	
15

Sola r p anels in V äste rå s S w ed en .
P hoto : H ans B erg gre n / S ca nd in a v / im ageb ank.s w ed en .s e
1 . I n tro d uctio n
The C oun cil o f t h e E U p ro p ose d t h e R eg ula tio n o n a n e m erg en cy in te rv e n tio n t o
a ddre ss h ig h e n erg y p ric e s in E uro p e ( h ere a ft e r “ t h e C R”) o n 1 4 S ep te m ber 2 22 .
T he C R w as a dop te d 6 O cto b er 2 22 a nd c a m e in to e ffe ct f ro m 8 O cto b er 2 22 .	[1]	
T he a im o f t h e C R w as t o m it ig a te t h e e ffe cts o f h ig h e n erg y p ric es o n e n erg y
co nsu m ers t h ro ug h e xc e p tio na l, t a rg ete d a nd t im e-lim ited m ea su re s. T he p rim ary
m ea su re s t o r e a ch t h is a im w ere :	
R ed uctio n in e le ctric it y d em and
C ap o n m ark e t r e ve n ues f o r in fra m arg in a l te ch no lo gie s in e le ctric ity
gen era tio n
S olid arit y c o ntrib utio n f ro m t h e f o ssil f u el se cto r	
1.	Sourc e : 	E U R-L ex - 3 20 22R 18 54 - E N - E U R-L ex ( e u ro p a.e u )	
16

The C R a ls o in clu d ed m ea su re s t h a t e n a ble m em ber s ta te s t o in te rv e n e in t h e p ric e
se tt in g o f e le ctric it y f o r h o use h o ld s a nd s m all- a nd m ed iu m -s iz e d e n te rp ris es
(S M Es).
T he C R s tip ula te d t h e m ea su re s t h a t m em ber s ta te s w ere t o im ple m en t. H ow eve r,
t h ere w as s o m e 
th is s tu d y is t o d esc rib e h ow t h e e m erg en cy m ea su re s o utlin ed in t h e C R w ere
im ple m en te d in t h e N ord ic c o untrie s. T he s e co nd a im is t o a sse ss t h e im pact o f
th ese m ea su re s o n t h e N ord ic w ho le sa le p ow er m ark e t in t h e s h o rt a nd lo ng t e rm .
The C R h a s b een im ple m en te d in D en m ark , F in la nd a nd S w ed en . I c e la nd a nd
N orw ay a re n ot m em bers o f t h e E U , a nd s in ce t h e C R is n ot E EA -re le va nt ( a nd
th ere fo re n ot c o m puls o ry ), I c e la nd a nd N orw ay h a ve n ot im ple m en te d t h e C R.
H en ce , I c e la nd a nd N orw ay a re o uts id e t h e s c o p e o f t h is r e p ort .	
[2]	
1 .1 . O rg a niz a tio n o f t h e r e p ort
This r e p ort is o rg a niz e d a s f o llo w s. W e s ta rt b y d esc rib ing t h e t h re e m ain m ea su re s
in t h e C R in g re a te r d eta il, a ft e r w hic h w e d esc rib e h ow t h e C R h a s b een
im ple m en te d in e a ch c o untry in C ha pte r 2 . C ha pte r 2 a ls o s u m mariz es t h e m ark e t
a gen ts ’ r e a ctio ns t o t h e m ea su re s.
A ft e r d esc rib in g t h e m ea su re s a nd h ow t h ey h a ve b een im ple m en te d , w e t u rn t o
t h e im pacts o f t h e m ea su re s. W e e xa m in e t h e im pacts o f t h e r e ve n ue c a p in
C ha pte r 3 , t h e im pacts o f t h e m ea su re s t o r e d uce e le ctric ity d em and in C ha pte r 4
a nd t h e im pacts o f t h e f o ssil f u el s o lid arit y c o ntrib utio n in C ha pte r 5 . O ur f o cu s is
o n t h e s h o rt - a nd lo ng -t e rm im pacts o n t h e N ord ic e le ctric ity m ark e t. S ho rt -t e rm
im pacts r e fe r t o p ro d uctio n a nd c o nsu m ptio n d ecis io ns, w hile lo ng -t e rm im pacts
re fe r t o in ve stm en t d ecis io ns. F in a lly , C ha pte r 6 c o nclu des.
2.	N orw ay h a s in tro d uce d m ea su re s in r e sp onse t o t h e h ig h e le ctric it y p ric e s ( s e e e .g ., 	
 a nd 	), b ut t h ese m ea su re s w ere im ple m en te d	
b efo re t h e C R.  	
H øyp ris b id ra g p å v in d - o g	
va nnkra ft - r e g je rin g en .n o	R eg je rin g en s s trø m tilt a k - r e g je rin g en .n o	
17

1.2 . M eth o d s
The r e p ort is b ase d o n t h e f o llo w in g m eth o d s:	
A r e vie w o f r e le va nt o f
re sp onse s t o p ub lic c o nsu lt a tio ns in t h e t h re e c o untrie s, e tc .
In te rv ie w s w it h v a rio us p ow er m ark e t p art ic ip ants , s u ch a s r e p re se n ta tiv es
o f r e g ula to rs , t ra nsm is sio n s y ste m o p era to rs ( T S O s) a nd p ro d uce r
o rg a niz a tio ns.
D ata : c o nsu m ptio n d ata h a s b een p ub lis hed b y t h e T S O s a nd t h e a uth o rit ie s.
H ow eve r, m uch o f t h is d ata w as m ade p ub lic ju st b efo re t h e 
th e r e p ort .	
1 .3 . B ack g ro un d : H ig h p ric e s in la te s u m mer a nd e a rly
a utu m n o f 2 22
The C R w as in tro d uce d in O cto b er 2 22 f o llo win g a c o up le o f m onth s o f d eb ate .
P ow er p ric e s h a d b een e xtra ord in a rily h ig h f o r s e ve ra l m onth s, n ot o nly d urin g a
f e w p ea k h o urs b ut o ve r a lo ng er p erio d . T he p ric e le ve ls w ere u n p re ce d en te d ,
esp ecia lly f o r t h e s u m mer m onth s o f J u n e, J u ly a nd A ug ust, a nd r e m ain ed h ig h
eve n in S ep te m ber 2 22 ( s e e F ig ure 1 .1 ). T his is t h e b ackg ro un d o f t h e C R.
Fig ure 1 .1 s h ow s t h a t p ow er p ric e s d ro p ped c o nsid era bly in O cto b er 2 22 . A ltho ug h
p ric e s w ere h ig h in D ece m ber ( s lig htly b elo w 2 5 E U R/M W h o n a ve ra ge in
D en m ark , F in la nd a nd S outh ern S w ed en ), t h ey w ere m uch lo w er t h a n in A ug ust. I n
t h e 
F in la nd a nd S outh ern S w ed en a nd s lig htly a bove 1 E U R/M W h in D en m ark .
A lt h o ug h t h is is s till c o nsid era bly h ig her t h a n t h e h is to ric al p ric e le ve l, it is w ell
b elo w t h e le ve l o f A ug ust a nd S ep te m ber, w hen t h e C R w as b ein g d is cu sse d .	
18

Ja n 2 22F eb 2 22M ar 2 22A pr 2 22M ay 2 22J u n 2 22J u l 2 22A ug 2 22S ep 2 22O ct 2 22N ov 2 22D ec 2 22J a n 2 23F eb 2 23M ar 2 23A pr 2 23	
E U R/M W h	
05010 015 020 025 030 035 04 045050 0	Sw ed en (n o rt h )	Sw ed en (s o uth )	Fin la n d	D enm ark (w est)	
F ig ure 1 .1 . M onth ly a ve ra ge s p ot p ric e s ( d ay-a hea d), J a nua ry 2 22 – A pril 2 23
S ourc e :  V is ta A na ly se , b ase d o n d ata f ro m E N TS O -E	
19

Am ager B akke . W aste e n erg y p la nt in C op en ha gen , D en m ark .
P hoto : H oft o n& C ro w
2 . I m ple m en ta tio n o f e m erg en cy
m ea su re s in t h e N ord ic c o un trie s
The C R r e q uir e d E U m em ber s ta te s t o im ple m en t e m erg en cy m ea su re s in r e sp onse
to h ig h e le ctric it y p ric e s. I n s h o rt , t h e m ain m ea su re s o utlin ed in t h e C R w ere :	
R ed uctio n in e le ctric it y d em and 	th a t	 in vo lv e d t w o t a rg ets :	
A m and ato ry 5 % r e d uctio n in p ea k-h o ur e le ctric ity c o nsu m ptio n 
in t h e p erio d o f 1 D ece m ber 2 22– 31 M arc h 2 23 .
A v o lu nta ry 1 % r e d uctio n t a rg et o f t o ta l e le ctric ity c o nsu m ptio n 
in t h e p erio d o f 1 N ove m ber 2 22– 31 M arc h 2 23 .
C ountrie s c o uld d ecid e o n a ppro p ria te m ea su re s t o m eet t h ese
ta rg ets .	
20

Cap o n m ark e t r e ve n ues f o r in fra m arg in a l t e ch no lo g ie s in e le ctric it y
g en era tio n	: t h e r e ve n ues o f s o m e e le ctric it y g en era to rs w ere c a pped a t 1 8 0	
E U R/M W h. T his a pplie d t o t h e in fra m arg in al te ch no lo gie s, i. e ., t h o se w ith
m arg in a l c o sts lo w er t h a n t h e m ark e t p ric e. T he c a p a pplie d u ntil 30 J u n e
20 23 .
S olid arit y le vy f ro m t h e f o ssil f u el s e cto r:	 c o m panie s a ctiv e in t h e p etro le u m ,	
ga s, c o a l a nd r e
c o ntrib utio n o f a t le a st 3 3% o f t h eir t a xa ble p ro
f o ur 	
A lt h o ug h t h ese m ea su re s w ere o utlin ed in t h e C R, t h e s p eci
le ft t o t h e m em ber s ta te s, a nd t h ere w as s o m e 
im ple m en ta tio n o f t h e m ea su re s.
S ectio ns 2 .1 – 2 .3 p ro vid e m ore d eta il a b out t h e r e q uir em en ts o f t h e C R a nd t h eir
im ple m en ta tio n in e a ch c o untry . T a ble 2 .1 s u m mariz es t h e r e q uir em en ts o f t h e C R
and t h e im ple m en ta tio n o f t h e m ea su re s in t h e N ord ic c o untrie s.
W e a ls o p re se n t a s h o rt o ve rv ie w o f t h e r e a ctio ns f ro m t h e m ark e t a gen ts in e a ch
co untry b ase d o n r e sp onse s t o p ub lic c o nsu lt atio ns o n t h e la w a nd in te rv ie w s w ith
m ark e t a gen ts a nd a uth o rit ie s. 	
2 1

Ta ble 2 .1 . O ve rv ie w o f t h e im ple m en ta tio n o f t h e e m erg en cy m ea su re s in t h e N ord ic c o un trie s	
Th e C oun cil R eg ula tio n	S w ed en	D en m ark	F in la nd	
R ed uctio n in e le ctric it y
d em and	
M and ato ry 5 % r e d uctio n in
e le ctric it y c o nsu m p
pea k lo a d h o urs b etw een 1
D ece m ber 2 22– 31 M arc h
2 23 .
V olu nta ry 1 % r e d uctio n o f
to ta l e le ctric it y c o nsu m p
betw een 1 N ove m ber 2 22– 31
M arc h 2 23 .
F le xib le im ple
s o m e
of p ea k h o urs .	
C onsu m ptio n 
p ro cu re m en t s c h em e.
E nerg y s a vin g s in 1 9 8
p ub lic in stit u tio ns.
In fo rm atio n c a m paig n.	
E nerg y s a vin g s in t h e
sta te a nd p ub lic
s e cto rs .
E nerg y-s a vin g
ca m paig ns f o r h o use
h o ld s a nd b usin esse s.	
V olu nta ry p ow er
sy ste m s u p port
p ro ce d ure .
E nerg y-s a vin g
ca m paig n “ D ow n a
d eg re e”.	
C ap o n m ark e t r e ve n ues	18 E U R/M W h c a p o n m ark e t
re ve n ues o b ta in ed f ro m t h e
sa le o f e le ctric it y p ro
f ro m s p eci
1 D ece m ber 2 22– 30 J u n e
20 23 .
 	
18 E U R/M W h c a p o n m ark e t
re ve n ues o b ta in ed f ro m t h e
sa le o f e le ctric it y p ro d uce d
fro m s p eci
1 M arc h 2 23 – 30 J u n e 2 23 .
Ta x a pplie d t o 9 % o f h o urly
r e a liz e d r e ve n ues e xc e ed in g
th e c a p.	
18 E U R/M W h c a p o n m ark e t
re ve n ues o b ta in ed f ro m t h e
sa le o f e le ctric it y p ro d uce d
fro m s p eci
1 D ece m ber 2 22– 30 J u n e
20 23 .
Ta x a pplie d t o 9 % o f
m onth ly r e a liz e d r e ve n ues
exc e ed in g t h e c a p.	
A ddit io na l 3 % t a x o n
ele ctric it y c o m panie s’ p ro
in 2 23 , a bove “ o rd in a ry ”
re tu rn o n e q uit y.
T he t a x is le vie d o n e le ctric it y
p ro d uce rs a nd , u n d er c e rt a in
c o nd it io ns, r e ta ile rs .	
S olid arit y c o ntrib utio n f ro m
fo ssil f u el s e cto r	
The f o ssil f u el s e cto r is le vie d
a t a x o f 3 3% o n t a xa ble
p ro
a ve ra ge p ro
p re ce d in g y e a rs b y 2 % .
Applie s t o 
a nd /o r 2 23 .	
T he f o ssil f u el s e cto r is le vie d
a t a x o f 3 3% o n t a xa ble
p ro
a ve ra ge p ro
p re ce d in g y e a rs b y 2 % .	
The f o ssil f u el s e cto r is le vie d
a t a x o f 3 3% o n t a xa ble
p ro
a ve ra ge p ro
p re ce d in g y e a rs b y 2 % .	
The f o ssil f u el s e cto r is le vie d
a t a x o f 3 3% o n t a xa ble
p ro
a ve ra ge p ro
p re ce d in g y e a rs b y 2 % .	
Sourc e :  V is ta A na ly se	
2 2

2.1 . M ea su re 1 : R ed uctio n in e le ctric it y c o nsu m ptio n
W e s ta rt b y d esc rib in g h ow t h e C R s tip ula te d t h e d em and r e d uctio n m ea su re s
(S ectio n 2 .1 .1 ) b efo re e xp la in in g h ow S w ed en , F in la nd a nd D en m ark im ple m en te d
th e m ea su re s ( S ectio ns 2 .1 .2 t o 2 .1 .4 ).
2 .1 .1 . T h e C oun cil R eg ula tio n: E le ctric it y c o nsu m ptio n r e d uctio n
The C oun cil R eg ula tio n s tip ula te d t w o d em and r e d uctio n m ea su re s:	
A m and ato ry 5 % r e d uctio n in e le ctric it y c o nsu m ptio n d urin g p ea k lo ad h o urs .
A v o lu nta ry 1 % r e d uctio n t a rg et in t o ta l e le ctric ity c o nsu m ptio n.	
2.1 .1 .1 . A m and ato ry 5 % r e d uctio n in e le ctric it y c o nsu m ptio n d urin g p ea k h o urs
T he C oun cil e xp la in ed t h e m otiv a tio n t o in tro d uce a p ea k h o ur d em and r e d uctio n
as f o llo w s:	
T o p re se rv e f u el s to ck s f o r e le ctric it y g en era tio n a nd t o s p ecif ic a lly t a rg et
th e h o urs w it h h ig hest p ric e o r c o nsu m ptio n o f e le ctric it y , w hen g a s-fir e d
p ow er g en era tio n h a s a p a rt ic u la rly s ig nif ic a nt im pa ct o n t h e m arg in a l
pric e , e a ch M em ber S ta te s h o uld r e d uce it s g ro ss e le ctric it y c o nsu m ptio n
d urin g id en tif ie d p ea k h o urs .
R ecit a l 1 7 , t h e C R	
In a ddit io n, a cco rd in g t o A rt ic le 4 o f t h e C R, e a ch m em ber s ta te w as t o id en tif y t h e
exp ecte d p ea k h o urs f o r 1 D ece m ber 2 22– 31 M arc h 2 23 a nd r e d uce e le ctric ity
co nsu m ptio n b y a n a ve ra ge o f a t le a st 5 % p er h o ur d urin g t h ese h o urs . T he p ea k
ho ur d em and r e d uctio n w as c a lc u la te d a s f o llo ws:	
… t h e d if fe re n ce b etw een t h e a ctu a l g ro ss e le ctric it y c o nsu m ptio n f o r t h e
id en tif ie d p ea k h o urs a nd t h e g ro ss e le ctric it y c o nsu m ptio n f o re ca ste d b y
th e t ra nsm is sio n s y ste m o p era to rs [ … ] w it h o ut t a kin g in to a cco un t t h e
effe ct o f t h e m ea su re s p ut in p la ce t o r e a ch t h e t a rg et s e t in t h is A rt ic le .
A rt ic le 4 .1 , t h e C R	
23

Mem ber s ta te s h a d s o m e 
sa ve d w as a t le a st e q ua l t o t h e a m ount im plie d b y t h e p ara m ete rs in t h e C R;
how eve r, a t le a st 1 % o f t h e h o urs n eed ed t o b e c o ve re d .
The C R o utlin ed t h re e w ays t o d e	
H ours w it h t h e h ig hest e xp ecte d p ric e s a cco rd in g t o f o re ca sts .
H ours w it h t h e h ig hest e xp ecte d c o nsu m ptio n.
H ours w it h t h e h ig hest e xp ecte d n o n-re n ew able c o nsu m ptio n.	
T he C R d id n ot s p ecif y w hic h m ea su re s s h o uld b e u se d t o a ch ie ve c o nsu m ptio n
re d uctio n. H ow eve r, t h e C R a sk e d m em ber s ta te s t o c o nsid er m ark e t-b ase d
m ea su re s, s u ch a s a uctio ns a nd t e n d er s c h em es, in p art ic u la r.
2 .1 .1 .2 . A v o lu n ta ry 1 % r e d uctio n in t o ta l m onth ly g ro ss e le ctric it y c o nsu m ptio n
A cco rd in g t o A rt ic le 3 .1 o f t h e C R, m em ber s ta te s w ere t o e n d ea vo ur t o im ple m en t
m ea su re s t h a t w ould r e d uce t o ta l e le ctric ity c o nsu m ptio n b y 1 % . T he 	co m paris o n	
p erio d	 w as t h e a ve ra ge c o nsu m ptio n in t h e c o rre sp ond in g m onth ( N ove m ber– M arc h )	
of t h e r e fe re n ce p erio d . T he 	re fe re n ce p erio d	 w as d e	
2.1 .1 .3 . F le xib ilit y in t h e im ple m en ta tio n o f d em and r e d uctio n m ea su re s
T he C R s u g geste d t h a t d em and r e d uctio n m ea su re s in clu de n a tio na l a w are n ess-
ra is in g c a m paig ns, p ub lis h in g t a rg ete d in fo rm atio n a bout t h e f o re ca ste d e le ctric ity
sy ste m s it u a tio n, r e g ula to ry m ea su re s lim itin g n o n-e sse n tia l e n erg y c o nsu m ptio n,
a nd t a rg ete d in ce n tiv e s t o r e d uce e le ctric ity c o nsu m ptio n ( s e e R ecit al 19 o f t h e C R).
M em ber s ta te s w ere f re e t o c h o ose h ow t o r e a ch t h e d em and r e d uctio n t a rg ets s e t
b y t h e C oun cil a nd c o uld e xte n d e xis tin g n a tio na l m ea su re s. H ow eve r, t h e
im ple m en te d m ea su re s s tip ula te d t h e f o llo win g c o nd it io ns ( A rt ic le 5 ):	
. 	W here 
a m ount o f t h a t c o m pen sa tio n s h a ll b e e sta b lis hed t h ro ug h a n o p en
co m petit iv e p ro ce ss.	
. 	O nly in vo lv e 
a ddit io na l e le ctric it y n ot c o nsu m ed c o m pare d t o t h e e xp ecte d c o nsu m ptio n in
t h e h o ur c o nce rn ed w it h o ut t h e t e n d er.	
. 	N ot u n d uly d is to rt c o m petit io n o r t h e p ro p er f u n ctio nin g o f t h e in te rn a l m ark e t
in e le ctric it y.	
. 	N ot b e u n d uly lim it e d t o s p eci
in d ep en d en t a ggre g a to rs , in a cco rd ance w ith A rt ic le 1 7 o f D irectiv e ( E U )
20 19 /9 4 4.	
. 	N ot u n d uly p re ve n t t h e p ro ce ss o f r e p la cin g f o ssil fu el te ch no lo gie s w ith
te ch no lo g ie s u sin g e le ctric it y.	
2 4

2.1 .2 . S w ed en : C onsu m ptio n r e d uctio n im ple m en ta tio n a nd r e a ctio ns	
Key f e a tu re s o f t h e im ple m en ta tio n o f d em and r e d uctio n m ea su re s in
S w ed en	
P ub lic in stit u tio ns w ere r e q uir e d t o im ple m en t e n erg y-s a vin g m ea su re s.
T he in fo rm atio n c a m paig n “ E ve ry k ilo w att -h o ur c o unts ”.
S ve n sk a k ra ft n ä t in tro d uce d a p ro cu re m en t s c h em e t o r e d uce p ea k lo ad
co nsu m ptio n.
P ea k h o urs w ere d e
aft e rn o on.	
S om e in it ia tiv e s t o r e d uce p ow er c o nsu m ptio n w ere e n a cte d b efo re t h e C R w as
adop te d . F or in sta nce , p ub lic in stit u tio ns w ere r e q uir ed t o im ple m en t e n erg y-s a vin g
m ea su re s, a nd a n in fo rm atio n c a m paig n a im ing t o in fo rm t h e p ub lic a bout p ossib le
m ea su re s t o r e d uce c o nsu m ptio n a nd s h if t c o nsu m ptio n a w ay f ro m p ea k lo ad
ho urs w as la un ch ed . I n a ddit io n, in S ep te m ber 2 22 t h e S w ed is h g ove rn m en t a sk e d
th e S w ed is h T S O S ve n sk a k ra ft n ä t t o c o nsid er m ea su re s t o r e d uce d em and a nd
in cre a se d em and 
2.1 .2 .1 . D efin it io n o f p ea k h o urs
In S w ed en , p ea k h o urs w ere d e
th re e h o urs in t h e a ft e rn o on ( 1 6 :0 0–18 :5 9) e ve ry w eekd ay.	 T he m in im um	
re q uir e m en t o f t h e C R w as o ne h o ur p er d ay. T he S w ed is h d e
appro xim ate ly 1 8 % o f a ll h o urs d urin g t h e p erio d o f 1 D ece m ber 2 22– 31 M arc h
2 23 , i. e ., a h ig her s h a re o f a ll h o urs t h a n r e q uir ed in t h e C R ( 1 % ). T he h ig hest
e xp ecte d c o nsu m ptio n in te rp re ta tio n w as u se d t o id en tif y t h e p ea k lo ad h o urs .	
[3]	
[4]	
2 .1 .2 .2 . S ve n sk a k ra ft n ä t c o nsid ere d s e ve ra l m od els f o r p ro cu rin g f le xib ilit y
In S ep te m ber 2 22 , t h e S w ed is h g ove rn m en t t a sk e d S ve n sk a k ra ft n ä t w ith
pre p arin g f u rt h er p ro cu re m en t o f c o nsu m ptio n a nd p ro d uctio n 
S outh ern S w ed en .	 A ft e r t h e C R w as a dop te d , S ve n sk a k ra ft n ä t m ade s u re t h a t	
th e c o nsu m ptio n p ro cu re m en t a lt e rn a tiv e s w ere d esig ned t o c o rre sp ond w ith t h e
C R.	
[5]	
3.	, 3 N ove m ber 2 22	S vk r e p ort 2 22 /3 28 3	
4.	
 ( I2 22 /0 20 4310 N ove m ber 2 22)	
R ed ovis n in g a v f a sts tä lld a h ö g la stt im mar i s a m band m ed r e g erin g su p pdra g a tt g en o m	
5.	
 ( I2 22 /0 17 2 1, 8 S ep te m ber 2 22)	
U ppdra g a tt 
S ve rig e	
2 5

Sve n sk a k ra ft n ä t c o nsid ere d s e ve ra l c o nsu m ptio n p ro cu re m en t m od els a nd
p ro d uctio n p ro cu re m en t m od els ( s e e T e xt F ra m e 2 .1 ). I n t h e e n d , a c o nsu m ptio n
sh if t e d c o nsu m ptio n a w ay f ro m p ea k h o urs .
A gen ts c o uld p re -q ua lif y b eg in nin g in N ove m ber 2 22 , a nd t h e p ro cu re m en t
d ocu m en ts w ere p ub lis h ed b efo re C hris tm as 2 22 , w ith t e n d ers b ein g c o ntin uo usly
e va lu a te d t h ere a ft e r. T he p ro cu re m en t w as c o nd it io na l o n t h e E U C om missio n’s
a ppro va l, a s t h e c o m pen sa tio n f o r t h e c o nsu m ptio n r e d uctio n c o nstit u te d s ta te
a id ; S w ed en r e ce iv e d t h is a ppro va l o n 6 F eb ru a ry 2 23 . T he 
a gre em en t e n te re d in to f o rc e a f e w d a ys a ft e r t h e E uro p ea n C om missio n’s
a ppro va l. T he t o ta l 
h o ur.
H ow eve r, t h e h ig h p ric e s in D ece m ber 2 22 a nd J a nua ry 2 23 , t o g eth er w ith t h e
in fo rm atio n c a m paig n a nd o th er m ea su re s, le d t o a s u f
ele ctric it y c o nsu m ptio n, m akin g t h e p ro cu re m en t s c h em e r e d un d ant. F or in sta nce ,
co nsu m ptio n w as r e d uce d b y a lm ost 2 ,0 00 M W in p ea k h o urs o n a ve ra ge in
D ece m ber, J a nua ry a nd F eb ru a ry ( s e e S ectio n 4 .2 ). T he w ea kn ess o f t h e s c h em e
was t h a t t h e s e le cte d c o nsu m ers h a d t o r e d uce t h eir e le ctric ity c o nsu m ptio n
re g a rd le ss o f p ric e s o r w heth er t h ere w as a r is k o f p ow er s h o rt a ge. O n 2 8 F eb ru a ry
2 23 , S ve n sk a k ra ft n ä t a nno un ce d t h e c lo su re o f t h e 
m en t s c h em e.	 A gre em en ts a lr e a dy m ade w ere v a lid u ntil 31 M arc h 2 23 .	[6]	
2 .1 .2 .3 . O th er c o nsu m ptio n r e d uctio n m ea su re s
O th er m ea su re s im ple m en te d in S w ed en t o r e d uce p ow er d em and in clu de t h e
fo llo w in g :	
E nerg y-s a vin g m ea su re s in p ub lic in stit u tio ns.	 T his m ea su re w as	
im ple m en te d b efo re t h e C R. T he o rd in a nce r e q uir ed t h a t 1 9 8 p ub lic
in stit u tio ns t a ke p ossib le a nd a ppro p ria te e n erg y-s a vin g m ea su re s f ro m
O cto b er 2 22– M arc h 2 23 . O n a n o ng oin g b asis , in stit u tio ns w ith 1 o r m ore
e m plo ye es m ust r e p ort t h eir e n erg y c o nsu m ptio n a nd w hic h m ea su re s t h ey
h a ve in tro d uce d t o r e d uce t h eir e le ctric it y u se .	
[7]	
T he p ub lic in fo rm atio n c a m paig n “ E ve ry k ilo w att -h o ur c o unts ” (	V arje	
k ilo w att im me ( k W h) r ä kn a s	), w hic h a im s t o in fo rm t h e p ub lic a bout p ossib le	
m ea su re s t o r e d uce c o nsu m ptio n a nd s h if t c o nsu m ptio n a w ay f ro m p ea k
ho urs .	[8]	
6.	
 ( I2 22 /0 20 4310 N ove m ber 2 22)	
R ed ovis n in g a v f a sts tä lld a h ö g la stt im mar i s a m band m ed r e g erin g su p pdra g a tt g en o m	
7.	F i2 22 /0 25 71, 8 S ep te m ber 2 22)	U ppdra g a tt v id ta e n erg ib esp arin g så tg ä rd er in o m d en s ta tlig a 	
8.	V arje k ilo w att im me ( k W h) r ä kn a s ( e n erg im yn d ig hete n .s e )	
2 6

Te xt F ra m e 2 .1 . P ro cu re m en t s c h em es c o nsid ere d b y S ve n sk a k ra ft n ä t
Sve n sk a k ra ft n ä t id en ti
m od els f o r 
t o b e 
a lt e rn a tiv e m od els w ould b en e
co m bin a tio n f o r m axim um e ffe ct.
T he t h re e c o nsu m ptio n 	
A lt e rn a tiv e 1 : I n cre a se t h e u se o f p ric e -d ep en d en t b id s ( h o urly b id s, b lo ck b id s
and 
w ould c o m pen sa te c o nsu m ers w hen t h ey r e fra in ed f ro m c o nsu m ptio n, e it her
p er M W m ade p ric e -d ep en d en t o r b ase d o n t h e c o st o f lo st o utp ut ( d ue t o
re d uce d e le ctric it y c o nsu m ptio n).
A lt e rn a tiv e 2 : C om pen sa tio n f o r s h if t in g c o nsu m ptio n f ro m p ea k h o urs .
C onsu m ers m ove a c e rt a in v o lu m e o f p ow er p urc h a se s f ro m e xp ecte d p ea k
lo a d h o urs t o o th er p erio d s a nd r e ce iv e c o m pen sa tio n, f o r e xa m ple , f o r
hig her p ro d uctio n c o sts r e su lt in g f ro m t h e s h if t. A ll els e e q ua l, t h e s h if t
w ould d ecre a se p ea k p ric e s a nd in cre a se o th er p ric es, le ve llin g t h e p ric e
cu rv e .
A lt e rn a tiv e 3 : C om pen sa tio n f o r t h e n et r e d uctio n o f p ow er c o nsu m ptio n.
C onsu m ers r e fra in f ro m p urc h a sin g a c e rt a in v o lu m e o f p ow er w itho ut
in cre a sin g c o nsu m ptio n in o th er h o urs .	
A lt e rn a tiv e 2 w as c h o se n , a s it w as c o nsid ere d t o h a ve a la rg er p ric e-re d ucin g
effe ct t h a n A lt e rn a tiv e 1 , e sp ecia lly d urin g p ea k-lo ad h o urs , w hile A ltern a tiv e 3
w ould h a ve a c o ntin uo us p ric e -re d ucin g e ffe ct d urin g t h e c o ntra ct p erio d.
The t w o 
co m pen sa te d p ro d uce rs w ho s u b m it t e d a ddit io na l b id s t o t h e s p ot m ark e t d urin g
pea k lo a d h o urs . T he m ain d if fe re n ce w as t h e c o m pen sa tio n s c h em e. H ow eve r, t h e
sc h em es m ay h a ve d is to rt e d c o m petit io n b eca use s o m e a gen ts r e ce iv ed
co m pen sa tio n f ro m t h e p ro cu re m en t s c h em e a nd o th ers d id n ot.
T he r e p ort a ls o m en tio ns t h e p ossib ilit y o f p ro cu rin g la rg er p ro d uctio n f a cilit ies
w it h t h e a im o f u sin g t h ese f o r r e m ed ia l m ea su re s ( c o unte rt ra de a nd r e d ir ectio n)
a nd t h e p ote n tia l f o r u sin g p ow er r e se rv e s in t h e s p ot m ark e t t o r e d uce p ric es.
S ourc e : U ppdra g a tt 
o ch p la nerb ar e lp ro d uktio n i s ö d ra S ve rig e ( s v k .s e )	
27

2.1 .3 . D en m ark : C onsu m ptio n r e d uctio n im ple m en ta tio n a nd r e a ctio ns	
Key f e a tu re s o f t h e im ple m en ta tio n o f d em and r e d uctio n m ea su re s in
D en m ark	
M and ato ry e n erg y-s a vin g m ea su re s f o r c e n tra l a uth o rit ie s.
V olu nta ry e n erg y-s a vin g m ea su re s f o r lo ca l a uth o rit ie s.
E nerg y-s a vin g c a m paig ns f o r h o use h o ld s a nd b usin esse s.	
D en m ark d id n ot im ple m en t a ny n ew c o nsu m ptio n r e d uctio n m ea su re s a ft e r t h e
C R e n te re d in to f o rc e . A la rg e-s c a le n a tio na l e n erg y-s a vin g c a m paig n t a rg etin g
ho use h o ld s, p ub lic a uth o rit ie s a nd p riv a te c o m panie s w as e sta b lis hed in J u n e 2 22
w it h t h e a im o f r e d ucin g e n erg y c o nsu m ptio n, in clu din g g a s, s p eci
e le ctric it y c o nsu m ptio n in g en era l, a lo ng w ith m ovin g e n erg y c o nsu m ptio n a w ay
fro m p ea k h o urs .	[9]	
In a ddit io n, t h ere a re f o ur p re -e xis tin g s u b sid y s c h em es w ith a p rim ary f o cu s o f
p ha sin g o ut f o ssil f u els in t h e h ea tin g o f p riv ate b uild ings:	[10	]	
T he B uild in g P ool (	B yg nin g sp ulj e n	)	
T he S cra ppin g S ch em e (	S kro tn in g so rd nin g en	)	
T he D is tric t H ea tin g P ool (	F je rn va rm ep ulj e n	)	
T he P ha sin g -O ut S ch em e (	A	)	
2 .1 .3 .1 . E nerg y-s a vin g m ea su re s in t h e p ub lic s e cto r
The g ove rn m en t is su ed in stru ctio ns t o a ll m inistrie s, d ep art m en ts a nd p ub lic
agen cie s ( in clu d in g a gen cie s, c o un cils a nd b oa rd s) t o im ple m en t ( m and ato ry )
m ea su re s t o s a ve e n erg y b y 1 O cto b er 2 22 .	 T he r e co m men d atio ns w ere	
in co rp ora te d in to r e g ula tio ns t h a t a ls o im ple m en te d A rt ic le 5 o f t h e c u rre n t E nerg y
ef
a llo ca te d t o t h e r e sp onsib le m in is trie s. E xc e p tio ns a re p ossib le if m ea su re s a re n ot
fe a sib le o r t e ch nic a lly p ossib le t o c o m ply w ith, e .g ., in h o sp it als .	
[11]	
9.	S ourc e : A nsw er t o f u l
20 22 /18 54 , D anis h E nerg y A gen cy, 2 3 J a nua ry 2 23 .	
10	.S ourc e : D esc rip tio n o f h ea tin g s u b sid y s c h em es, E nerg is ty re ls e n , 2 1 A pril 2 23 .	
11.	.	R eg erin g en , D ansk e R eg io ner o g K L e r e n ig e o m a t s p are p å e n erg ie n i d et o ffe n tlig e ( k e fm .d k)	
2 8

The f o ur r e co m men d atio ns in clu d e t h e f o llo win g :	
D ecre a sin g t h e in d oor t e m pera tu re t o 1 9 ° C
R ed ucin g t h e o p era tin g t im e o f v e n tila tio n a nd h ea tin g s y ste m s in b uild ings
Tu rn in g o ff u n nece ssa ry o utd oor lig htin g
Dis trib utin g in fo rm atio n m ate ria l t o e m plo ye es	
F urt h erm ore , lo ca l a uth o rit ie s p ro m ote t h e ( v o lu nta ry ) a dop tio n o f in itia tiv es
sim ila r t o t h o se im ple m en te d b y t h e m inistrie s. S om e m un ic ip alit ies h a ve d ecid ed
to g o e ve n f u rt h er, f o r e xa m ple , b y r e d ucin g t h e w ate r t e m pera tu re o f p ub lic in door
p ools , c lo sin g s a un a s, r e d ucin g t h e u se o f p ub lic lig htin g a nd /o r p ro m otin g w ork in g
fro m h o m e.
T he D anis h E nerg y A gen cy ( D EA ) a ls o la un ch ed a n in fo rm atio n c a m paig n t o
e n co ura ge c iv il s e rv a nts t o t a ke lo ca l in it ia tiv es f o r e n erg y c o nse rv a tio n, s u ch a s
tu rn in g o ff lig hts a nd c o m pute r s c re en s in u n use d m eetin g r o om s ( s e e C ha pte r
2 .1 .3 .3 ).
2 .1 .3 .2 . E nerg y-s a vin g c a m pa ig n f o r h o use h o ld s
In J u n e 2 22 , t h e D EA la un ch ed a n a tio na l ca m paig n w ith t h e o b je ctiv e o f r e d ucin g
en erg y u se in D anis h h o use h o ld s. I n p art ic u la r, t h e c a m paig n e m pha siz e s r e d ucin g
ele ctric it y c o nsu m ptio n d urin g p ea k h o urs a nd s h if tin g c o nsu m ptio n t o c h ea per
(a nd g re en er) h o urs o f t h e d ay.	[12	]	
T he c a m paig n in clu d es in fo rm atio n o n e n erg y c o nsu m ptio n, a dvic e o n e n erg y s a vin g
possib ilit ie s a nd e n co ura gem en t t o s a ve e n erg y v ia s e ve ra l d if fe re n t c h a nnels , s u ch
a s o utd oor p oste rs , c a m paig n v id eo s o n n a tio na l T V, s o cia l m ed ia a nd t h e w eb sit e
SparE nerg i. d k.
F urt h erm ore , a n um ber o f in fo rm atio n m eetin gs f o r D anis h g a s c u sto m ers a nd
ho use h o ld s in g en era l h a ve b een h eld b oth o nlin e a nd lo ca lly a ro un d t h e c o untry ,
a nd a h otlin e w here D anis h h o use h o ld s c a n r e ce iv e a dvic e o n e n erg y c o nsu m ptio n
and e n erg y-e f
2 .1 .3 .3 . E nerg y-s a vin g c a m pa ig n f o r p riv a te c o m pa nie s
T he D EA in tro d uce d a n a tio na l e n erg y-s a vin g c a m paig n t a rg etin g b usin esse s w ith
th e g oa l o f r e d ucin g e n erg y c o nsu m ptio n ( b oth e le ctric ity a nd n a tu ra l g a s u se ).
T he c a m paig n is a im ed a t t ra de a nd s e rv ic e in dustrie s, e d uca tio na l a nd c u lt ura l
in stit u tio ns, c a re f a cilit ie s a nd s m alle r m anufa ctu rin g c o m panie s, w ith t h e a im o f
m ovin g s o m e o f t h e e n erg y c o nsu m ptio n a w ay f ro m p ea k h o urs .	
[13	]	
12.	.	S pare rå d t il h je m met ( s p are n erg i. d k)	
13.	.	S pare rå d p å a rb ejd sp la dse n | E nerg is ty re ls e n ( s p are n erg i. d k)	
2 9

The c a m paig n w eb sit e , S parE nerg i. d k, f e a tu re s in fo rm atio n a nd c a m paig n
m ate ria l. F urt h erm ore , t h e D EA h a s is s u ed a c a ta lo gue w ith a dvic e , g uid ance a nd
ca lc u la tio ns o n e n erg y s a vin g s in w ork p la ce s a im ed a t e m plo ye es a nd o p era tio na l
m ana gers in o f
T he D EA h a s a ls o e n g a ged t h e p ub lic in g en era l th ro ug h o utd oor p oste rs , c a m paig n
vid eo s o n n a tio na l T V a nd s o cia l m ed ia t o e n co ura ge lo ca l e n erg y-e f
b eh a vio urs , s u ch a s t u rn in g o ff lig hts , s c re en s, c o m pute rs a nd o th er e le ctro nic
d evic e s w hen le a vin g a r o om o r w ork sp ace , a s w ell as s w it c h in g t o L E D lig hts .
2 .1 .3 .4 . T h e B uild in g P ool ( B yg nin g sp ulj e n )
T he B uild in g P ool is a n a pplic a tio n-b ase d s u b sid y s c h em e w here in div id ua ls a nd
ho use h o ld s c a n a pply f o r g ra nts s u b sid is in g t h e in sta lla tio n o f a n e le ctric h ea t
pum p w hen c o nve rt in g f ro m g a s, o il o r p elle t b ro ile rs o r e le ctric al h ea tin g. T he
sc h em e a ls o o ffe rs g ra nts f o r g en era l e n erg y-e f
in su la tio n, v e n tila tio n a nd e n erg y-e f
T he s u b sid y is v a ria ble , b ase d o n a 
of t h e m ea su re . T he s u b sid y is 1 5 % f o r m ost m ea su re s a nd is p aid o ut a ft e r t h e
m ea su re h a s b een d ocu m en te d a s c o m ple te d w ithin t h e r e q uir em en ts e sta b lis hed
in t h e le g a l f ra m ew ork . T he d em and f o r t h e s u b sid y h a s e xc e ed ed t h e a llo tt e d
fu n d s e ve ry y e a r s in ce it s in tro d uctio n in la te 2 20 .
B eg in nin g in 2 23 , t h e B uild in g P ool w as d iv id ed in to t w o s e p ara te s c h em es: o ne
fo cu sin g o n h ea t p um ps a nd t h e o th er o n e n erg y e f
2 .1 .3 .5 . T h e S cra ppin g S ch em e ( S kro tn in g so rd nin g en )
T he S cra ppin g S ch em e is a n a pplic a tio n-b ase d s u b sid y s c h em e t a rg etin g p riv ate
c o m panie s t h a t s e ll h ea t p um ps w it h a n a cco m panyin g s e rv ic e a gre em en t
su b sc rip tio n, in clu d in g in sta lla tio n o f t h e h ea t p um p. T he s c h em e p ro vid es g ra nts
fo r c o nve rt in g a w ay f ro m g a s, o il a nd p elle t b ro ile rs t o a n e le ctric h ea t p um p. T he
g ra nt c o ve rs a m axim um o f 4 5 % o f t h e e lig ible c o sts f o r c o nve rs io n f ro m g a s- a nd
o il-
o f t h e s u b sid y is 2 5 ,0 00 D KK . T he s c h em e h a s n ot a ch ie ve d f u ll dis burs e m en t o f t h e
a llo ca te d f u n d s s in ce it s im ple m en ta tio n in la te 2 20 .
2.1 .3 .6 . T h e D is tric t H ea tin g P ool ( F je rn va rm ep ulj e n )
T he D is tric t H ea tin g P ool is a n a pplic a tio n-b ase d s u b sid y s c h em e t a rg ete d a t
dis tric t h ea tin g c o m panie s t h a t r o ll o ut d is tric t h ea tin g in n ew a re a s. T he s c h em e
pro vid es s u b sid ie s f o r c o nve rs io ns f ro m g a s- o r o il-
T he d is tric t h ea tin g c o m panie s c a n r e ce iv e a s u b sid y o f u p t o 2 ,0 00 D KK p er
co nve rt e d g a s- o r o il-
H ea tin g P ool h a s b een h ig h a nd s te a dily in cre a sin g o ve r t h e la st y e a r.	
3 0

2.1 .3 .7 . T h e P ha sin g -O ut S ch em e ( A fk o b lin g so rd nin g en )
T he P ha sin g -O ut S ch em e is a f e e-w aiv e r s c h em e t a rg ete d a t in div id ua l g a s
co nsu m ers w ho u se g a s f o r h ea tin g . W hen a n in div id ua l g a s c o nsu m er s e n d s a
d eco up lin g r e q uest f ro m t h e g a s g rid t o t h e d is trib utio n s y ste m o p era to r ( E vid a),
t h ey n o rm ally h a ve t o p ay a d eco up lin g f e e; h ow eve r, t h is s c h em e c o ve rs t h e c o st o f
th e d eco up lin g f o r in d iv id ua l g a s c o nsu m ers . T he s c h em e h a s a lim ited b ud get f o r
ea ch y e a r. T he a m ount c o ve re d b y t h e s c h em e is b etw een 7 ,0 00–8 ,2 D KK ,
dep en d in g o n t h e a re a in w hic h t h e g a s c o nsu m er liv es. T he f e e is d is burs e d b y t h e
D EA t o E vid a. T he s c h em e w as s o p op ula r a m ong in div id ua l g a s c o nsu m ers t h a t it
r e ce iv e d a ddit io na l f u n d in g in 2 22 a nd 2 23 .	
31

2.1 .4 . F in la nd : C onsu m ptio n r e d uctio n im ple m en ta tio n a nd r e a ctio ns	
Key f e a tu re s o f t h e im ple m en ta tio n o f d em and r e d uctio n m ea su re s in
F in la nd	
V olu nta ry p ow er s y ste m s u p port p ro ce d ure .
T he e n erg y s a vin g c a m paig n “ D ow n a D eg re e”.
P ea k h o urs w ere d e
eve ry a ft e rn o on o n w eekd ays.	
2 .1 .4 .1 . D efin it io n o f p ea k h o urs
P ea k h o urs in F in la nd w ere d e
w eekd ay f ro m 8 :0 0–10 :0 a nd 1 7 :0 0–20 :0 0, e xc lu din g h o lid ays.
2 .1 .4 .2 . V olu n ta ry p ow er s y ste m s u p port p ro ce d ure
A t t h e b eg in nin g o f D ece m ber 2 22 , t h e T S O F in g rid in tro d uce d a n ew s c h em e t o
a vo id e le ctric it y o uta ges. T he a im o f t h e s c h em e is t o e n g a ge c o m panie s a nd p ub lic
en tit ie s w ho c a n r e d uce d em and o r in cre a se e le ctric ity p ro d uctio n ( f o r e xa m ple , b y
sta rt in g b ack-u p p ow er g en era to rs ) b ut d o n ot p art ic ip ate in t h e d ay-a hea d o r
b ala ncin g m ark e ts .	 I f t h ere is r is k o f a p ow er s h o rt a ge, F in g rid c o nta cts t h e	
a gen ts d ir e ctly b y t e xt m essa ge, in fo rm in g t h em a bout t h e r is k a nd a sk in g t h em t o
b e p re p are d . T his t y p ic a lly h a ppen s a d ay a hea d. T he a gen ts a re o nly a sk e d t o
a ctiv a te t h e e m erg en cy m ea su re s w hen t h ere is a r e a l n eed .	
[14	]	
[15	]	
F in g rid h a s e n te re d in to a gre em en ts w it h a bout 5 c o m panie s a nd p ub lic e n tit ie s
(e .g ., t h e H els in ki- re g io n w ate r s u p plie r, Y a ra , S SA B a nd M ets ä ). T he m inim um
co ntrib utio n f ro m a n a gen t is 1 M W . A t t h e t im e o f t h is w rit in g, t h e t o ta l ca pacit y
acq uir e d t h ro ug h t h e s c h em e is o ve r 5 M W .
The c o m panie s a re n ot c o m pen sa te d f o r t h is o th er t h a n t h ro ug h p ric e e ffe cts o n
th e m ark e t.	 F in g rid h a s p oin te d o ut t h a t a n im port a nt p art o f t h e s c h em e is t h e	
id en ti
e m plo ye es in h ow t o r e d uce e le ctric it y c o nsu m ptio n s h o uld t h e r is k o f a b la cko ut o r
a b ro w no ut o cc u r.	
[16	]	
In A pril 2 22 , t h e s c h em e w as e xte n d ed t o s p rin g 2 24 .	[17	]	
14.	.	S ähkö nsä ästö ja tk u n ut m arra sk u ussa - s ä hkö jä rje ste lm än t u ki - m en ete lm än o p era tiiv in en k ä ytt ö a lk a a - F in g rid	
1 5.	.	G ood p re p ara tio ns f o r e le ctric it y s h o rt a ges - F in g rid -le h ti (	
1 6.	.	S ähkö jä rje ste lm än t u ki - F in g rid	
1 7.	.	S ähkö jä rje ste lm än t u ki - m en ett e ly ä ja tk e ta an k e vä älle 2 24 - F in g rid	
3 2

2.1 .4 .3 . E nerg y-s a vin g c a m pa ig n “ D ow n a D eg re e”
T he F in nis h e n erg y s a vin g c a m paig n “	” (	A ste tt a A le m mas	) b eg a n o n	
10 O cto b er 2 22 a nd h a s t h e f o llo w in g g oa ls :	
D ow n a D eg re e	
A ll F in ns t a ke s p eci
q uic k r e su lt s .
E ve ry o ne v o lu nta rily lim it s t h eir e le ctric ity c o nsu m ptio n d urin g t h e h o urs o f
th e d ay w hen c o nsu m ptio n is h ig hest – o n w eekd ays f ro m 8 :0 0–10 :0 a nd
16 :0 0–18 :0 – b y m ovin g t h e u se a nd c h a rg in g o f e le ctric al d evic e s t o o th er
tim es.	[18	]	
E nerg y c o nsu m ptio n is r e d uce d t h ro ug ho ut s o cie ty, in clu din g in h o m es a nd
ho usin g c o m panie s, b usin esse s, m un ic ip alit ies, o rg a niz atio ns a nd e d uca tio na l
in stit u tio ns.	
In a ddit io n, t h e c a m paig n’s w eb p age in E ng lis h lis ts t h e f o llo win g g oa ls :	
Sho rt -t e rm g oa l: “ T o g et o ve r 9 5% o f F in nis h h o use h o ld s t o s a ve e n erg y a nd
cu t d ow n o n t h eir c o nsu m ptio n b y 5 % d urin g p ea k h o urs .”
L ong -t e rm g oa l: “ T o p erm anen tly lo w er e n erg y c o nsu m ptio n a nd r e d uce
e le ctric it y c o nsu m ptio n p ea ks.”	
T he c a m paig n e n co ura ges e ve ry o ne t o lim it t h eir e le ctric ity c o nsu m ptio n d urin g
pea k h o urs . C onsu m ers a re a ls o p ro vid ed e n erg y-s a vin g a dvic e a nd h elp w ith
en erg y is su es r e la te d t o h o usin g . T he c a m paig n is o rg a niz ed b y t h e E nerg y
A uth o rit y, M otiv a , t h e M in is try o f E co no m ic A ffa ir s a nd E m plo ym en t o f F in la nd , t h e
M in is try o f t h e E nvir o nm en t, t h e P rim e M iniste r’s O f
Fun d S it ra , a nd it is 
2 .1 .4 .4 . 	I n fo rm atio n a nd e d uca tio n	
E nerg y e xp ert s a nd r e p re se n ta tiv e s o f t h e a uth o rit ie s h a ve b een a ctiv e in t h e
m ed ia , in fo rm in g t h e p ub lic a bout t h e s it u a tio n a nd p ossib le m ea su re s t o r e d uce
e n erg y a nd e le ctric it y c o nsu m ptio n. T his h a s c o ntrib ute d t o in cre a se d a w are n ess
a m ong t h e g en era l p ub lic .
18	.T he p ea k h o urs d e
pea k h o ur c o nsu m ptio n r e d uctio n.	
3 3

2.2 . M ea su re 2 : C ap o n m ark e t r e ve n ues
2.2 .1 . T h e C oun cil R eg ula tio n: M ark e t r e ve n ue c a p o n t h e s a le o f
ele ctric it y
T he C oun cil e xp la in ed t h e m otiv a tio n t o in tro d uce a m ark e t r e ve n ue c a p a s f o llo ws:	
T h e r e ce n t s u rg e in t h e p ric e o f g a s a nd h a rd c o a l h a s t ra nsla te d in to a n
exce p tio na l a nd la stin g in cre a se o f t h e p ric e s a t w hic h t h e g a s a nd c o a l-
f ir e d p ow er g en era tio n f a cilit ie s b id in t h e d ay-a hea d w ho le sa le m ark e t.
T h a t in t u rn h a s le d t o e xce p tio na lly h ig h p ric e s in t h e d ay-a hea d m ark e t
[… ] I n a s it u a tio n w here c o nsu m ers a re e xp ose d t o e xtre m ely h ig h p ric e s
w hic h a ls o h a rm t h e U nio n’s e co no m y, it is n ece ssa ry t o li m it , o n a
t e m pora ry b a sis , t h e e xtra ord in a ry m ark e t r e ve n ues o f p ro d uce rs w it h
lo w er m arg in a l c o sts b y w ay o f a pplic a tio n o f t h e c a p o n m ark e t r e ve n ues
a ch ie ve d t h ro ug h t h e s a le o f e le ctric it y . [ … ] T h e c a p o n m ark e t r e ve n ues
sh o uld a pply t o t e ch no lo g ie s w it h m arg in a l c o sts lo w er t h a n t h e c a p o n
m ark e t r e ve n ues, s u ch a s f o r in sta nce w in d , s o la r, n ucle a r e n erg y o r li g nit e .
F ro m r e cit a ls 2 3 , 2 5 a nd 3 2 , t h e C R	
Acco rd in g t o A rt ic le 7 .1 , t h e c a p a pplie d t o t h e m ark e t r e ve n ues o b ta in ed f ro m t h e
sa le o f e le ctric it y p ro d uce d b etw een 1 D ece m ber 2 22– 30 J u n e 2 23 f ro m t h e
fo llo w in g s o urc e s:	
W in d a nd s o la r ( t h erm al a nd P V )
G eo th erm al
H yd ro p ow er w it h o ut s to ra ge
B io fu els , e xc e p t f o r b io m eth a ne
W aste
N ucle a r
Lig nit e a nd c ru d e p etro le u m p ro d ucts
P ea t	
The m ark e t r e ve n ues f ro m e le ctric it y g en era tio n f ro m t h ese s o urc e s w ere c a pped
a t a m axim um o f 1 8 E U R/M W h o f e le ctric ity p ro d uce d .	
34

Acco rd in g t o A rt ic le 6 .2 , t h e c a p o n m ark e t r e ve n ues t a rg ete d a ll th e m ark e t
re ve n ues o f p ro d uce rs , r e g a rd le ss o f t h e m ark e t in w hic h a t ra nsa ctio n t o ok p la ce .
In t h e N ord ic r e g io n, t h ere w ere t h re e r e le va nt w ho le sa le p ow er m ark e ts w ith
dif fe re n t t im e f ra m es: t h e d ay-a hea d m ark e t, t h e in tra day m ark e t a nd t h e
b ala ncin g m ark e t. N ord P ool is t h e m ain p ow er e xc h a ng e f o r e le ctric ity in t h e
N ord ic c o untrie s. I n a ddit io n t o N ord P ool, p hysic a l e le ctric ity is t ra ded b ila te ra lly
th ro ug h p ow er p urc h a sin g a gre em en ts ( P PA s).	[19	]	
T a ble 2 .2 s u m mariz e s t h e m ain f e a tu re s o f t h e C R a s it w as im ple m en te d in t h e
N ord ic c o untrie s. S ectio ns 2 .2 .1 t o 2 .2 .4 b elo w p ro vid e m ore d eta ils .
19.T here a re a ls o m ark e ts f o r t ra din g 
p ow er f u tu re s m ark e ts o n N asd aq O M X.	
35

Ta ble 2 .2 . C ap o n m ark e t r e ve n ues: S um mary o f im ple m en ta tio n in t h e N ord ic c o un trie s
O ptio n	S w ed en	D en m ark	F in la nd	
Typ e	R eve n ue c a p	R eve n ue c a p	P ro
3 % o n p ro
R O E	
Gen era tio n t e ch no lo g ie s in clu d ed	S am e a s in t h e C R
- H yd ro p ow er w it h s to ra ge < 2 4 h o urs
in clu d ed
- C ru d e o il in clu d ed , b ut f u el o il
e xe m pt	
S am e a s in t h e C R	Ta x a pplie s t o a ll p ro d uce rs	
T h e c a p le ve l	19 57 S E K /M W h
(E quiv a le n t t o 1 8 E U R/M W h)	
18 E U R/M W h	In te n d ed t o b e e q uiv a le n t t o a n
ave ra ge p ow er p ric e o f 2 8 0
E U R/M W h	
Cap a pplie d t o 9 % o f e xce ss r e ve n ues?	Y es	Y es	In te n d ed t o b e e q uiv a le n t	
S pecia l c a p f o r h ig h-c o st p ro d uce rs ?	Y es 
1.3 t im es v a ria ble c o sts	
Y es 
F ix e d a m ount o n t o p o f c o sts	
N o 
Ta x a pplie s t o a ll p ro d uce rs	
A ll w ho le sa le m ark e ts c o ve re d ( d ay-
a hea d, in tra day a nd b a la ncin g m ark e t)?	
Y es	Y es	Y es	
R efe re n ce p ric e s?	Y es
D ay-a hea d p ric e u se d a s a r e fe re n ce
fo r a ll w ho le sa le m ark e ts	
N o
Actu a l p ric e f o r a ll w ho le sa le m ark e ts	
N /A	
H ed gin g a gre em en ts a nd P PA s t a ke n in to
a cco un t?	
Y es	Y es	Y es	
S ett le m en t ( h o urly , m onth ly , y e a rly )	H ourly , w it h m onth ly c o rre ctio ns f o r
hed gin g p osit io ns	
M onth ly	Y ea rly ( t a x y e a r 2 23 )	
D ura tio n	1 M arc h 2 23 – 3 J u n e 2 23	1 D ece m ber 2 22 – 3 J u n e 2 23	T he t a x y e a r 2 23	
S ourc e :  V is ta A na ly se	
3 6

2.2 .2 . S w ed en : R eve n ue c a p im ple m en ta tio n a nd r e a ctio ns	
Key f e a tu re s o f t h e im ple m en ta tio n o f t h e r e ve n ue c a p in S w ed en	
T he c a p a pplie d t o 9 % o f r e ve n ues f ro m e le ctric ity s a le s w ith p ric es
a bove 1 8 E U R/M W h.
T he t a x b ase w as c a lc u la te d a s t h e s u m o f e le ctric ity s a le s in e a ch h o ur
m ult ip lie d b y t h e c o rre sp ond in g d ay-a hea d p ric e, w hic h w as u se d a s a
r e fe re n ce p ric e f o r a ll m ark e ts .
H ed gin g a gre em en ts a nd lo ng -t e rm c o ntra cts w ere t a ke n in to a cco unt
w hen c a lc u la tin g t h e t a x b ase ( i. e ., t h e a ctu a l p ric e o b ta in ed b y t h e
p ro d uce r) .
H ig h-c o st t e ch no lo g ie s h a d a s p ecia l r e ve n ue c a p o f 1 .3 t im es t h e
o p era tin g c o sts .
D ura tio n: 1 M arc h 2 23 – 30 J u n e 2 23 .	
T he S w ed is h g ove rn m en t is su ed a m em ora nd um o n 1 2 D ece m ber 2 22 , w ith
su p ple m en ta ry p ro vis io ns t o t h e C R o n t h e m ark e t r e ve n ue c a p.	 T he	
m em ora nd um w as s u b m it t e d f o r p ub lic c o nsu lt atio n in S w ed en . F ollo w in g t h e
fe ed back f ro m t h e p ub lic c o nsu lt a tio n, t h e g ove rn m en t a dju ste d t h e m em ora nd um
a nd p ro vid ed c la rif y in g c o m men ts t o c e rt a in p ro vis io ns b efo re s u b m ittin g it t o t h e
C oun cil o n L eg is la tio n f o r c o nsu lt a tio n, a ft e r w hic h a 
S w ed is h P arlia m en t ( R ik sd ag).	 T he R ik sd ag p asse d t h e b ill, a nd t h e n ew la w	
en te re d in to f o rc e 1 M arc h 2 23 .	
[20	]	
[21	]
[22	]	
T he m ain d if fe re n ce b etw een t h e S w ed is h im ple m en ta tio n a nd t h e C R is t h a t t h e
le g is la tio n t o ok e ffe ct o n 1 M arc h 2 23 a nd n ot 1 D ece m ber 2 22 . T he g ove rn m en t
exp la in ed t h e p ostp onem en t a s t h e n eed t o p olit ically p ro ce ss t h e b ill th ro ug h b oth
th e C oun cil o n L eg is la tio n a nd t h e R ik sd ag.
O th er t h a n t h e im ple m en ta tio n d ate , t h e p ro vis io ns o f t h e b ill were s im ila r t o t h o se
o f t h e C R. T he t a x a pplie d t o 9 % o f r e ve n ues o b ta in ed f ro m t h e s a le o f e le ctric ity
th a t e xc e ed ed t h e p ric e c a p p ro d uce d b y t h e t e ch no lo gie s lis te d in t h e C R.	 T he	
ca p w as s e t a t 1 ,9 57 S E K /M W h, w hic h c o rre sp ond ed t o t h e m inim um le ve l
stip ula te d in t h e C R ( 1 8 E U R/M W h).  	
[2 3	]	
20	.	 F i2 22 /0 3328 ( 1 2 D ece m ber 2 22).	T ill	
2 1.	.	E xtra ä nd rin g sb ud get 	
2 2	.	
.	
E xtra ä nd rin g sb ud get 
F in a nsu ts k o tt e t) | S ve rig es r ik sd ag ( r ik sd agen .s e )	
2 3	.E le ctric it y g en era te d f ro m c ru d e p etro le u m p ro d ucts w ere t a xe d , b ut f u el o il g en era to rs w ere e xe m pt.	
3 7

The d ay-a hea d m ark e t p ric e w as u se d a s a r e fe re n ce p ric e f o r a ll m ark e t r e ve n ues.
R eve n ues f ro m a ll w ho le sa le m ark e ts w ere in clu ded in t h e t a x b ase , b ut p ric e
dif fe re n ce s b etw een t h e m ark e ts w ere n ot t a ke n in to a cco unt.
T he t a x b ase w as a dju ste d f o r h ed gin g p osit io ns a nd lo ng -t e rm c o ntra cts ( s u ch a s
pow er p urc h a sin g a gre em en ts ).
A s p ecia l r e ve n ue c a p a pplie d t o p ro d uctio n t e ch no lo gie s w ith h ig h o p era tin g c o sts .
F or t h o se p ro d uce rs , t h e c a p w as 1 .3 t im es t h e o p era tin g c o sts .
2 .2 .2 .1 . R ea ctio ns f ro m m ark e t a gen ts a nd t h e g en era l p ub lic in S w ed en
T he g ove rn m en t in vit e d p riv a te a nd p ub lic o rg a niz atio ns t o g iv e f e ed back o n t h e
p ro p osa l. T he 
th e g ove rn m en t’s e xp la na tio ns f o r e a ch p ro vis io n.	[24	]	
M ost r e sp onse s e n d ors e d ( o r a t le a st d id n ot o b je ct t o ) t h e g en era l in te n tio ns o f
th e p ro p ose d im ple m en ta tio n o f t h e C R. M any o f t h e r e sp onse s r e q ueste d
cla ri
im ple m en ta tio n o f c e rt a in p ro vis io ns. T here w ere a ls o s o m e w arn in gs a bout
exc e ssiv e a dm in is tra tiv e b urd en s o f p ra ctic al im ple m en ta tio n. I t w as m ostly e n erg y
p ro d uce rs w ho a rg ued a ga in st t h e p ro p osa l.
The f e ed back a bout im pacts o n w ho le sa le m ark e ts c a n b e s u m mariz ed a s f o llo ws:	
T here w ere n o o b je ctio ns t o lim it in g t h e r e ve n ue c a p t o 9 % o f e xc e ss in co m e
(in ste a d o f 1 0% ).
S om e c o nsu m er o rg a niz a tio ns ( e .g ., V illa äga rn a s R ik s
th e t a x s h o uld b e a pplie d r e tro a ctiv e ly f ro m 1 D ece m ber 2 22 . P ro d uce rs
e n d ors e d t h e p la nned a pplic a tio n f o r 1 M arc h 2 23 .
S om e a gen ts ( S ve n sk a k ra ft n ä t, N ord P ool A B a nd F in a nsin sp ektio nen )
in d ic a te d t h a t u sin g t h e d ay-a hea d m ark e t p ric e a s a r e fe re n ce f o r a ll
m ark e ts c o uld in
m ark e ts , w hic h o ft e n h a ve h ig her p ric e s. T his c o uld in cre a se p ric es o n d ay-
a hea d a nd d eriv a tiv e s m ark e ts . H ow eve r, S ve n sk a k ra ft n ä t a sse sse d t h is r is k
to b e le ss c rit ic a l t h a n t h e r is k o f d ecre a se d liq uid ity in b ala ncin g m ark e ts .
P ro d uce rs a dvo ca te d t h a t t h e t a x s h o uld b e b ase d o n a m onth ly a ve ra ge
p ric e , n ot a n h o urly p ric e .
T here w ere n o o b je ctio ns t o a s p ecia l r e ve n ue c a p f o r p ro d uce rs w ith h ig h
op era tin g c o sts . H ow eve r, t h ere w ere s e ve ra l re q uests f o r c la ri	
A m ore c o m ple te o ve rv ie w , in clu d in g g ove rn m en t c la ri
b ill t e xt.
24	.	.	R em is s a v p ro m em oria n T ill	
3 8

2.2 .3 . D en m ark : R eve n ue c a p im ple m en ta tio n a nd r e a ctio ns	
Key f e a tu re s o f t h e im ple m en ta tio n o f t h e r e ve n ue c a p in D en m ark	
T he c a p a pplie d t o 9 % o f r e ve n ues f ro m e le ctric ity s a le s f o r p ric es a bove
18 E U R/M W h.
T he t a x b ase w as c a lc u la te d b ase d o n a ve ra ge m onth ly p ric es ( n ot d aily o r
ho urly ).
H ed gin g a gre em en ts a nd lo ng -t e rm c o ntra cts w ere t a ke n in to a cco unt
w hen c a lc u la tin g t h e t a x b ase .
H ig h-c o st t e ch no lo g ie s ( b io m ass- a nd o il-
re ve n ue c a p d ep en d in g o n f u el p ric e s.
D ura tio n: 1 D ece m ber 2 22 – 3 J u n e 2 23 .	
D en m ark h a d a g en era l e le ctio n in la te 2 22 , w hic h d ela ye d t h e p olit ical tre a tm en t
o f t h e n a tio na l s u p ple m en ta ry p ro vis io ns t o t h e C oun cil Reg ula tio n. T o e n su re
s e cu rit y o f s u p ply w hile a w ait in g t h e g ove rn m en t’s im ple m en ta tio n p ro p osa l, t h e
D anis h E nerg y A gen cy in fo rm ed t h e r e le va nt s ta ke h o ld ers a bout t h e p ossib le
im ple m en ta tio n a nd t h a t t h e D anis h im ple m en ta tio n w as lik ely t o b e s im ila r t o t h e
p ro vis io ns s tip ula te d b y t h e E U .
The D anis h g ove rn m en t s e n t a p ro p osa l o f t h e b ill fo r p ub lic c o nsu lt atio n o n 2 7
J a nua ry 2 23 .	 T he b ill, a lo ng w it h p ub lic c o nsu lt a tio n f e ed back , w as p re se n te d	
to t h e D anis h P arlia m en t ( F olk e tin g et) o n 2 2 M arc h 2 23 , a nd it w as a dop te d o n 2 7
A pril 2 23 .	
[25	]	
[26	]	
T he p urp ose o f t h e b ill w as t o s u p ple m en t a nd im ple m en t t h e p ro vis io ns o n a
m and ato ry c a p o n m ark e t r e ve n ue o f 1 8 E U R/M W h. T ho se lia ble w ere e le ctric ity
pro d uce rs w it h in co m e f ro m t h e p ro d uctio n a nd s a le o f e le ctric ity f ro m 1 D ece m ber
20 22– 30 J u n e 2 23 . T ho se lia ble f o r t h e t a x h a d t o p ay 9 % o f t h eir r e a liz ed
m ark e t in co m e a bove t h e in co m e c a p. H ed gin g a gre em en ts a nd lo ng -t e rm
c o ntra cts ( P PA s) w ere t a ke n in to a cco unt w hen c a lc ula tin g m ark e t in co m e.
P ow er p la nts p ro d ucin g e le ctric it y f ro m c ru d e o il pro d ucts a nd s o lid b io m ass f u els
h a d a h ig her r e ve n ue c a p t o a cco unt f o r o p era tin g c o sts a bove t h e r e ve n ue c a p.
F urt h erm ore , a n um ber o f p ro d uctio n f a cilit ies w ere e xe m pt f o r o th er r e a so ns, s u ch
a s s e cu rit y o f s u p ply , e ffe cts o n h ea tin g p ric es f o r c o nsu m ers a nd a dm inistra tiv e
burd en s f o r s m alle r p ro d uce rs .
25	.	.	L 6 8 - F ors la g t il lo v o m e t lo ft o ve r in d tæ gte r f ra e lp ro d uktio nen | S ka tt e m in is te rie t ( s k m .d k)	
2 6	.	.	L ov o m e t lo ft o ve r in d tæ gte r f ra e lp ro d uktio n ( re ts in fo rm atio n.d k)	
3 9

The 
re tro a ctiv e ly f ro m D ece m ber 2 22 .
E xp la na tio n f o r u sin g a m onth ly a ve ra ge p ric e r a th er t h a n h o urly p ric e s
T he g ove rn m en t a sse sse d t h a t a c a lc u la tio n o f t h e a ctu a l in co m e o n a s h o rt e r t e rm
(d aily o r h o urly b asis ) w ould e n ta il s ig ni
m any o nly r e ce iv e d a m onth ly s e tt le m en t f ro m t h eir b ala nce r e sp onsib le p art ie s.
T here fo re , it w as p ro p ose d t o u se a c a lc ula tio n m eth o d t h a t w as b ase d o n a ctu a l
m onth ly p ro d uctio n a nd in co m e.
T he g ove rn m en t b elie ve d t h a t in o rd er t o e n su re s e cu rit y o f s u p ply , it w as
im port a nt t h a t p ro d uce rs c o ntin ued t o h a ve in ce n tiv es t o p art ic ip ate in a ll m ark e ts ,
in clu d in g in tra day a nd b ala ncin g m ark e ts . T he D anis h g ove rn m en t e xp la ined in t h e
b ill t h a t t h e p re se rv a tio n o f t h ese in ce n tiv es r e q uir ed t h a t p ric es o n in tra day a nd
b ala ncin g m ark e ts w ere a ble t o e xc e ed t h e d ay-a hea d p ric e, w hic h c o uld h a ve b een
a t r is k if t h e c a p w as b in d in g . B y c a lc u la tin g r e a liz ed in co m e o n a m onth ly b asis ,
pro d uce rs h a d t h e o p port u n it y t o o ff s e t a ny h ig h in co m e f ro m t im es o f h ig h
in tra day p ric e s b y b ala ncin g m ark e t p ric e s w ith p erio ds w hen t h eir in co m e w as
lo w er. T here fo re , t h e p ro p ose d c a lc u la tio n m eth o d w as c o nsid ere d t o r e d uce
d is tu rb ance s in m ark e t in ce n tiv e s.
2 .2 .3 .1 . R ea ctio n t o t h e r e ve n ue c a p in D en m ark
T he D anis h g ove rn m en t p ub lis h ed p ub lic c o nsu lt atio n s ta te m en ts o n 2 2 M arc h
2 23 . W e p re se n t t h e m ost r e le va nt f e e d back :	[27	]	
S om e a rg ued t h a t t h e r e ve n ue c a p w ould r e d uce g re en in ve stm en ts a nd t h us
sh o uld n ot b e p ro lo ng ed ( D ansk E rh ve rv , E uro w in d , G re en P ow er D en m ark ).
E uro p ea n E nerg y n ote d t h a t t h e r e g ula tio n c re a te d c h a lle ng es f o r p ro d uce rs
o f r e n ew able e n erg y, a s it t a xe d g re en e le ctric ity in ste a d o f h a rm oniz in g
ta xa tio n b etw een a ll f o rm s o f e n erg y. E uro p ea n E nerg y n ote d t h a t F in la nd
ta xe s a ll e n erg y c o m panie s’ e xc e ssiv e p ro
s h o uld r e co g niz e .
S eve ra l s ta te m en ts c rit ic iz e d t h a t p ow er b ro ke rs w ere e xe m pt ( D ansk M eta l,
F H , F orb ru ke rrå det T æ nk). D ansk E rh ve rv s u p port e d t h e e xe m ptio n. T he
g ove rn m en t p oin te d o ut t h a t in d ep en d en t b ro ke rs w ere n ot t a xe d p er t h e C R
but t h a t “ c o nnecte d b ro ke rs ” ( e .g ., t h ro ug h a g ro up) w ere t a xe d t o a vo id
w it h in -g ro up a dapta tio ns.	[28	]	
E uro w in d n ote d t h a t p ric e s h a d f a lle n s in ce t h e a dop tio n o f t h e r e g ula tio n
and t h a t t h e c u rre n t p ric e le ve l c o uld n o lo ng er ju stif y t h e in tro d uctio n o f t h e
re ve n ue c a p. E uro w in d a nd L a nd bru g & F ød eva re r n ote d t h a t t h e p ro ce ed s o f	
27	.F or a c o m ple te lis t o f s ta te m en ts , s e e 	.	h ere	
2 8	.T here h a s a ls o b een a n o ng oin g d eb ate in D anis h m ed ia a bout p ow er b ro ke rs ’ e xtra ord in a ry p ro
e xa m ple 	.	h tt p s:/ / e kstra bla det.d k/n yh ed er/ s a m fu n d /12 -m illia rd er- t il- d a nsk e rn e-m en -d e-s lip per/ 9 6 75 8 2	
4 0

th e p ro p osa l w ere n ot p ro p ort io na l t o t h e a dm inistra tiv e c o sts f o r e le ctric ity
pro d uce rs . E uro p ea n E nerg y a nd G re en P ow er D en m ark a ls o p oin te d o ut t h e
a dm in is tra tiv e b urd en .
F H n ote d t h a t t h e p ro p osa l r e su lt e d in lim ited p ro ce ed s a nd c o nsid ere d it
u n re a so na ble t h a t o nly t h e m in im um c a p le ve l w as im ple m en te d .
D ansk E rh ve rv , E uro p ea n E nerg y, E uro w in d , G re en P ow er D en m ark a nd
L a nd bru g & F ød eva re r f o un d it p ro b le m atic t h a t t h e le gis la tio n h a d a
r e tro a ctiv e e ffe ct a nd p oin te d t o S w ed en , w here t h e c a p w as e ffe ctiv e
beg in nin g 1 M arc h 2 23 . F H , h ow eve r, r e co g niz ed t h e n eed t o im ple m en t t h e
ca p r e tro a ctiv e ly .	
4 1

2.2 .4 . F in la nd : T a x o n p ro fit s	
K ey f e a tu re s o f t h e im ple m en ta tio n o f t h e p ro fit t a x in F in la nd	
F in la nd im ple m en te d a n a ddit io na l t e m pora ry t a x o n p ro
r e ve n ue c a p.
The t a x a pplie s t o p ro
T he t a x le ve l is 3 % , w hic h w as in te n d ed t o p ro vid e a t le ast a s m uch t a x
re ve n ue a s a r e ve n ue c a p g iv e n a c e rt a in a ve ra ge s p ot p ric e le ve l.
T he t a x is le vie d o n c o m panie s t h a t p ro d uce a nd s e ll ele ctric ity, w ith s o m e
exc e p tio ns.
T he t a x a pplie s t o t h e in co m e y e a r 2 23 .	
T he F in nis h g ove rn m en t s u b m it t e d a b ill to E dusk u nta ( t h e P arlia men t o f F in la nd )
on 2 9 D ece m ber 2 22 , w it h s u p ple m en ta ry p ro vis io ns t o t h e C R o n t h e m ark e t
re ve n ue c a p.	 T he E dusk u nta p asse d t h e b ill w it h s o m e c h a ng es t o t h e o rig inal	
pro p osa l a t t h e e n d o f F eb ru a ry 2 23 .	
[29	]	
[3 0	]	
T he la w in clu d es p ro vis io ns f o r a n ew t e m pora ry t a x t h a t a pplie s t o e le ctric ity
co m panie s’ p ro
o rd in a ry c o rp ora te in co m e t a x. P ro
a dju ste d e q uit y in t a xp aye rs ’ e le ctric it y b usin ess a ctiv it ie s a re t a xe d a t 3 % . T he
p urp ose o f t h e 1 % t h re sh o ld is t o e n a b le a t a x-f re e in co m e t h a t c o rre sp ond s t o
t h e c a pit a l c o st o f p ro d uctiv e in ve stm en ts a nd t h us a vo id n eg a tiv e in ce n tiv es in
t e rm s o f in ve stm en ts in e le ctric it y p ro d uctio n.
T he t a x is le vie d o n c o m panie s t h a t o p era te in t h e w ho le sa le m ark e ts a nd p ro d uce
e le ctric it y o r s u p ply e le ctric it y f o r c o nsu m ptio n o r r e sa le if t h e c o m pany h a s
re ve n ues f ro m s u ch a ctiv it ie s t h a t e xc e e d 5 0,0 00 E U R o r is n ot a lr ea dy c o ve re d b y
th e m and ato ry s o lid arit y c o ntrib utio n o n t h e f o ssil fu el se cto r.	 E le ctric it y	
re ta ile rs a re a ls o e xe m pt a s lo ng a s t h ey d o n ot p ro d uce e le ctric ity, a re p art o f a
g ro up p ro d ucin g e le ctric it y o r o w n s h a re s o f a c o m pany t h a t e n tit le s t h em t o
p urc h a se e le ctric it y b elo w m ark e t p ric e . F or d eta ils r e la te d t o o th er c o nsid era tio ns
a nd e xc e p tio ns, s e e t h e la w t e xt.	
[31	]	
[32	]	
29	.	.	R eg erin g en s p ro p osit io n R P 3 20 /2 22 r d	
3 0	.	.	Ä re n d ets b eh a nd lin g sin fo R P 3 20 /2 22 r d	
3 1.	S ee § 3 o f t h e 	.	la w	
32	.	.	T he R ik sd ag's r e sp onse R Sv  3 24 / 2 22 r d	
4 2

The F in nis h p ro
p ro
t a xin g p ro	[3 3	]	
T h e b a sic id ea o f t h e p ro p ose d t a xe s is t h a t t h ey s h o uld a pply t o t h e
a gen ts ’ n et in co m e, t h a t is , t h e d if fe re n ce b etw een in co m e a nd
exp en d it u re . T h e t a x t o b e p a id b y t h e c o m pa nie s o n t h e e le ctric it y m ark e t
th en t a ke s in to a cco un t t h e d if fe re n ce s in p ro d uctio n c o sts f o r d if fe re n t
fo rm s o f p ro d uctio n b ett e r t h a n t h e r e ve n ue c e il in g a cco rd in g t o t h e E U
re g ula tio n. S in ce t h e t a x is t o b e im pose d o n t h e b a sis o f t h e n et in co m e o f
th e a gen ts in t h e e le ctric it y m ark e t, it c a n b e a pplie d in a m ore n a tu ra l
w ay t h a n a r e ve n ue c a p t o a ll f o rm s o f e le ctric it y p ro d uctio n a nd a ll
e le ctric it y m ark e tp la ce s. T h e t a x t h us t re a ts d if fe re n t a gen ts in a m ore
e q ua l w ay t h a n a r e ve n ue c a p, w hic h t o a g re a te r e xte n t c o ve rs t h e f o rm s
of p ro d uctio n w ho se p ro d uctio n c o sts a re h ig her.
R P 3 20 /2 22 r d	
2 .2 .4 .1 . R ea ctio ns f ro m m ark e t a gen ts a nd t h e g en era l p ub lic in F in la nd
T he b ill in clu d es a s u m mary o f t h e 6 r e sp onse s f ro m t h e p ub lic c o nsu lt atio n o f t h e
b ill d ra ft . T he r e le va nt f e ed back f ro m t h e p ub lic c o nsu lt atio n t o t h e b ill dra ft c a n b e
su m mariz e d a s f o llo w s:	[34	]	
S om e s ta te m en ts s u p port e d t h e p ro
o th ers d is a gre ed , a rg uin g t h a t t h e t a x s h o uld b e im ple m en te d a s d esc rib ed in
t h e C R.
S eve ra l s ta te m en ts w arn ed t h a t t h e t a x c o uld c a use a r e d uctio n in
in ve stm en t in r e n ew able s. H ow eve r, o th er s ta te m en ts p oin te d o ut t h a t t h e
p re vio us in ve stm en t d ecis io ns w ere b ase d o n lo w er e xp ecte d p ric es t h a n t h e
a ctu a l c u rre n t p ric e s, t h a t t h e t a x a pplie s o nly f o r o ne y e a r a nd t h a t t h e
co nse q uen ce s f o r in ve stm en ts w ould t h ere fo re b e s m all.
A tt e n tio n w as d ra w n t o F in la nd ’s in te rn a tio na l co m petit iv en ess in a s it u a tio n
w here S w ed en , f o r e xa m ple , in te n d ed t o in tro d uce a r e ve n ue c a p f o r a
s h o rt e r p erio d ( 1 M arc h –30 J u n e 2 23 ) t h a n r e q uir ed b y t h e E U r e g ula tio n.
R eg a rd in g t h e d eta ils o f t h e t a x b ase c a lc ula tio n, t h e c o nsu lt atio n r e sp onse s
h ig hlig hte d in p art ic u la r t h a t t h e 5 % c a p is t o o lo w	; t h a t t h e t a x c o ve rs a	
lo ng er p erio d t h a n t h e in co m e c a p a cco rd in g t o t h e E U r e g ula tio n; t h a t t h e	
[35	]	
33	.F or a t h o ro ug h d is c u ssio n o f t h e r e la tio nsh ip o f t h e t a x t o t h e C R, s e e 	 f ro m t h e F in a nce	
C om mit t e e.	
R ep ort F iU B 4 4/2 22	
3 4	.F or t h e s u m mary in it s e n tir e ty, s e e t h e b ill. F or t h e in d iv id ua l c o nsu lt a tio n s ta te m en ts , s e e t h e F in nis h M in is try
o f F in a nce ’s w eb p age: 	.	h tt p s:/ / v m .	
35	.T he 	
4 3

ta x s h o uld n ot a pply t o p ure r e ta ile rs ; t h a t lo sse s s h o uld b e c o nsid ere d ; t h a t
th e t a x s h o uld b e lim it e d t o t h e r e su lt s o f t h e e le ctric ity b usin ess; a nd t h a t
gro up s it u a tio ns s h o uld b e c o nsid ere d .	
A ft e r r e ce iv in g t h e b ill, t h e F in a nce C om mitte e c o nd ucte d a n a ddit io na l h ea rin g
w it h p ow er s e cto r s ta ke h o ld ers a nd e xp ert s	[36	]	
A cco rd in g t o t h e F in a nce C om mit t e e, e xp ert s w ere c rit ic al o f t h e p ro p ose d
re g ula to ry a ppro a ch a nd it s r e la tio nsh ip t o t h e u n d erly in g E U r e g ula tio n.  T he
F in a nce C om mit t e e p oin te d o ut t h a t t h e im ple m en ta tio n o f t h e r e g ula tio n
via t h e p ro p ose d p ro
c a lc u la tio n t h a n t h e E U r e g ula tio n r e q uir ed in t e rm s o f t h e p art e xc e ed in g
th e u p per lim it f o r m ark e t r e ve n ue.  E xp ert s a ls o c rit ic iz ed t h e f a ct t h a t t h e
p ro
n eig hb ourin g c o untrie s. I n p art ic u la r, it w as c rit ic iz ed t h a t t h e t a x w as
stric te r t h a n t h e r e ve n ue-c a p m od el in S w ed en . 
T he o ng oin g e n erg y t ra nsit io n a nd t h e c u rre n t e n erg y c ris is h ig hlig ht t h e
im port a nce o f a w ell- f u n ctio nin g a nd s ta b le in ve stm en t e n vir o nm en t in t h e
en erg y s e cto r.  T he p ro p ose d r e g ula tio n w as s e e n a s r e d ucin g t h e
p re d ic ta bilit y o f t h e t a x s y ste m a nd t h ere b y le sse n in g c o m panie s’ in ve stm en t
in ce n tiv e s.  F ro m t h is p oin t o f v ie w , it is im port a nt t o c o m pare t h e c h o se n
m od el w it h r e g ula tio ns in o th er c o untrie s.  T he F in a nce C om mitte e
em pha siz e d t h a t, in v ie w o f t h e a cce p ta b ilit y o f t h e r e g ula tio n, it w as
esse n tia l t h a t t h e p ro p ose d m od el b e t e m pora ry s o t h a t it w ould n ot d ela y
or h in d er in ve stm en ts in t h e e n erg y s e cto r. 
G iv e n t h e p re d ic ta bilit y o f t h e in ve stm en t a nd b usin ess e n vir o nm en t, it w as
deem ed im port a nt t h a t t h e c h o se n r e g ula to ry s o lu tio ns s u p port e d a le ve l
p la yin g 
fu rt h er a sse ss w heth er t h e m od el p ro p ose d in t h e b ill su f
th e d if fe re n t s tru ctu re s f o r e le ctric it y p ro d uctio n s o t h a t t h e s y ste m w ould
n ot u n ju sti	
T he t a x d ele g a tio n o f t h e F in a nce C om mitte e a ls o c o nd ucte d a h ea rin g w ith
exp ert s o n t a xa tio n, 	[3 7	]	
M any b elie ve d t h a t it w as ju sti
th e e le ctric it y in d ustry a nd t h a t t h e p ro p ose d m od el w as a r e a so na ble
so lu tio n g iv e n t h e e xc e p tio na l s it u a tio n. 
T he b usin ess c o m mun it y a nd in p art ic u la r t h e e le ctric ity in dustry d id n ot
su p port t h e p ro p ose d t e m pora ry t a x o n t h e p ro	
3 6	.	.	E kU U 7 2 /2 22 r d ( e d usk u nta .	
37	.	.	F iU B 4 4/2 22 r d ( e d usk u nta .	
4 4

fo r t h e 2 23 t a x y e a r a nd t h o ug ht t h a t F in nis h s ta ke h o ld ers r e ce iv ed w ors e
c o m petit iv e c o nd it io ns t h a n a gen ts in o th er c o untrie s.  H ere , it w as p oin te d
o ut t h a t t h e p ro p ose d m od el d evia te d in m any p art s f ro m t h e m od el fo r a
m ark e t r e ve n ue c a p e sta blis h ed in t h e C R, a nd t h a t t h e p ro p ose d m od el w as
exte n siv e a nd s tric te r t h a n t h e m od el s p eci
w as a ls o c o nsid ere d a p ro b le m t h a t t h e t a x w ould n ot o nly a pply t o e xc e ss
in co m e.  T he p ro p ose d t a x-f re e s h a re o f 1 % o f t h e r e tu rn o n e q uit y w as
co nsid ere d t o o lo w .  F urt h erm ore , c rit ic is m w as d ir ecte d a t t h e f a ct t h a t
fo re ig n c a pit a l w as n ot c o nsid ere d .  H ow eve r, o th ers c o nsid ere d t h e a nnua l
ta x-f re e r e tu rn o f 5 % o n e q uit y ( in t h e o rig inal d ra ft b ill) s u f
th o ug ht it w as n ot n ece ssa ry t o in cre a se t h e r a te t o 1 % .  T he r e d uctio n o f
th e t a x r a te f ro m 3 3% t o 3 % , a cco rd in g t o t h e d ra ft , w as c rit ic iz ed .  I n
a ddit io n, it w as p oin te d o ut t h a t a t a x r a te o f 3 % s h o uld e n su re t h a t e xc e ss
p ro
t ra nsit io n a nd n ot f o r in cre a se d r e tu rn o n c a pit al o r r e w ard s f o r c o m pany
m ana gem en t. 
M any s tre sse d t h a t t h e p ro p ose d t a x s h o uld b e o f a o ne-t im e n a tu re .  T his
w as c o nsid ere d im port a nt t o a vo id n eg a tiv e in ve stm en t e ffe cts .  I n a
s it u a tio n w here t h e t a x w ould b e p erm anen t o r t h ere w as a p ro sp ect o f it
b ein g r e in tro d uce d , t h e t a x w as c o nsid ere d t o h a ve n eg a tiv e c o nse q uen ce s
fo r in ve stm en t. 
I t w as a rg ued t h a t t h e t a x w ould t re a t c o m panie s d if fe re n tly d ep en d in g o n
th eir c a pit a l s tru ctu re . 	
4 5

2.3 . M ea su re 3 : S olid arit y c o ntrib utio n f ro m t h e f o ssil f u el
se cto r
2.3 .1 . T h e C oun cil R eg ula tio n: S olid a rit y c o ntrib utio n f ro m t h e f o ssil f u el
se cto r
The C oun cil’s m otiv a tio n t o in tro d uce m and ato ry s o lid arit y c o nsu m ptio n f ro m t h e
fo ssil f u el s e cto r w as e xp la in ed a s f o llo w s:	
[C om pa nie s in ] t h e c ru d e p etro le u m , n a tu ra l g a s, c o a l a nd r e fin ery
s e cto rs , h a ve s e en t h eir p ro fit s s p ik e d ue t o t h e s u d den a nd u n p re d ic ta ble
c ir c u m sta nce s o f R ussia ’s w ar o f a ggre ssio n a ga in st U kra in e, r e d uce d
su p ply o f e n erg y a nd in cre a sin g d em and d ue t o r e co rd h ig h t e m pera tu re s.
[… ] T h e t e m pora ry s o lid arit y c o ntrib utio n s h o uld a ct a s a r e d is trib utin g
m ea su re t o e n su re t h a t t h e c o m pa nie s c o nce rn ed w hic h h a ve e a rn ed
su rp lu s p ro fit s a s a r e su lt o f t h e u n exp ecte d c ir c u m sta nce s, c o ntrib ute in
p ro p ort io n t o t h e im pro ve m en t o f t h e e n erg y c ris is in t h e in te rn a l m ark e t.
F ro m r e cit a ls 5 a nd 5 1, t h e C R	
Com panie s w it h a ctiv it ie s in t h e c ru d e p etro le um , n a tu ra l g a s, c o a l a nd r e
s e cto rs a re le vie d a m and ato ry t e m pora ry s o lid arit y c o ntrib utio n. T he c o ntrib utio n
sh a ll b e a t le a st 3 3% o f t h e t a xa ble p ro
m ore t h a n a 2 % in cre a se o ve r t h e a ve ra ge p ro
y e a rs .	
4 6

2.3 .2 . S w ed en : F ossil f u el s o lid arit y c o ntrib utio n im ple m en ta tio n a nd
re a ctio ns	
Key f e a tu re s o f t h e im ple m en ta tio n o f t h e m and ato ry s o lid arit y
c o ntrib utio n in S w ed en	
T he m and ato ry c o ntrib utio n is s e t t o 3 3 % o f p ro
1 2 % o f t h e a ve ra ge o f b efo re -t a x p ro
T he t a x a pplie s t o c o m panie s w here a t le ast 7 5 % o f t h e t a xa ble r e ve n ue in
t h e 2 23 in co m e y e a r d eriv e s f ro m e co no m ic a ctiv it ie s w ithin t h e c ru d e o il,
na tu ra l g a s, c o a l a nd r e	
T he S w ed is h g ove rn m en t s e n t a b ill t o t h e R ik sd agen o n 1 7 N ove m ber 2 22
p ro p osin g a n ew t e m pora ry t a x o n e xtra ord in ary p ro
2 23 .	 T he R ik sd agen p asse d t h e b ill o n 2 1 D ece m ber 2 22 .	[38	]	[39	]	
T he t e m pora ry t a x a pplie s t o c o m panie s w ho se n et r e ve n ues d urin g t h e 2 23 t a x
ye a r a re a t le a st 7 5 % a tt rib uta ble t o o p era tio ns in t h e f o ssil fu el se cto r. T he t a x is
le vie d o n t h e p art o f t h e c o m panie s’ t a xa ble p ro
t h e a ve ra ge t a xa ble p ro
is le vie d in a ddit io n t o t h e o rd in a ry 2 .6 % c o rp ora te t a x.
2 .3 .2 .1 . R ea ctio ns f ro m m ark e t a gen ts a nd t h e g en era l p ub lic in S w ed en
T he g ove rn m en t in vit e d 1 p riv a te a nd p ub lic o rg a niz atio ns t o g iv e f e ed back o n t h e
p ro p osa l.	 T he 	
g ove rn m en t e xp la na tio n f o r e a ch p ro vis io n.	
[40	]	
A m ajo rit y o f t h e r e sp onse s e n d ors e d ( o r d id n ot o b je ct t o ) t h e g en era l in te n tio ns
of t h e p ro p ose d im ple m en ta tio n o f t h e C R. T ho se w ho a rg ued a ga in st it w ere
e n erg y p ro d uce rs in t h e f o ssil f u el in d ustry .
A s u m mary o f t h e f e ed back , f o cu sin g o n t h e im pacts o n in ve stm en ts a nd p ric es, is
a s f o llo w s:
38	.E n t ill	
3 9	.	
.	
E n t ill
2 22 /2 3 :S kU 9 - R ik sd agen	
4 0	.R em is s a v p ro m em oria n E n t ill	
4 7

Driv k ra ft S ve rig e a rg ued t h a t s u ch s u d den a nd u n exp ecte d t a xe s m ay h a rm
t h e g re en t ra nsit io n.D riv k ra ft S ve rig e a rg ued t h a t t h e t a x m ay in cre a se
in ve stm en t c o sts , r e su lt in g in p ric e in cre a se s.
D riv k ra ft S ve rig e a rg ued t h a t in ste a d o f t h e t a x, c o m panie s t h a t c a rr y o ut a
g re en t ra nsit io n c o uld e a rm ark a n e q uiv ale nt a m ount f o r s u sta in able
in ve stm en ts .
S om e p ub lic in stit u tio ns p oin te d o ut t h a t c o m panie s m ay b e a ble t o u se
S w ed is h t a x r u le s t o n eu tra liz e t h e t a x.	
F or a m ore c o m ple te o ve rv ie w , in clu d in g t h e g ove rn m en t’s c la ri
t e xt.	
4 8

2.3 .3 . D en m ark : F ossil f u el s o lid arit y c o ntrib utio n im ple m en ta tio n a nd
re a ctio ns	
Key f e a tu re s o f t h e im ple m en ta tio n o f t h e m and ato ry s o lid arit y
c o ntrib utio n in D en m ark	
T he m and ato ry c o ntrib utio n is s e t t o 3 3 % o f p ro
1 2 % o f t h e a ve ra ge o f b efo re -t a x p ro
T he t a x a pplie s t o c o m panie s w here a t le ast 7 5 % o f t h e t a xa ble r e ve n ue in
t h e 2 23 in co m e y e a r d eriv e s f ro m e co no m ic a ctiv it ie s w ithin t h e c ru d e o il,
na tu ra l g a s, c o a l a nd r e	
D en m ark h a d a g en era l e le ctio n in la te 2 22 , w hic h d ela ye d t h e p olit ical tre a tm en t
o f n a tio na l s u p ple m en ta ry p ro vis io ns t o t h e C R. T he D anis h g ove rn m en t s e n t a b ill
pro p osa l f o r p ub lic c o nsu lt a tio n o n 2 7 J a nua ry 2 23 .	 T he b ill w as p re se n te d t o	
t h e F olk e tin g et o n 2 2 M arc h 2 23 , a lo ng w ith p ub lic c o nsu lt atio n f e ed back .	
[41	]	
[4 2	]	
T he p urp ose o f t h e b ill is t o s u p ple m en t a nd im ple m en t t h e p ro vis io ns o n a
m and ato ry t e m pora ry s o lid arit y c o ntrib utio n f ro m c o m panie s in t h e c ru d e o il,
na tu ra l g a s, c o a l a nd r e
7 5 % o f t h e t a xa ble r e ve n ue in t h e 2 23 in co m e y e a r d eriv es f ro m e co no m ic
activ it ie s w it h in t h e c ru d e o il, n a tu ra l g a s, c o a l a nd r e
is o nly t h e p art o f t h e c o m pany’s t a xa b le p ro
a ve ra ge t a xa ble p ro
J a nua ry 2 18 o r la te r.
T he s o lid arit y c o ntrib utio n r a te is s e t a t 3 3% .
41.	L 6 9 - F ors la g t il lo v o m m id le rt id ig t s o lid arit e ts b id ra g | S ka tt e m in is te rie t ( s k m .d k)	
4 2	.	.	L 6 9 - 2 22-2 3 ( 2 . s a m lin g ) ( o ve rs ig t): F ors la g t il lo v o m e t m id le rt id ig t s o lid arit e ts b id ra g. / F olk e tin g et ( f t .d k)	
4 9

2.3 .3 .1 . R ea ctio ns f ro m t h e p ub lic c o nsu lt a tio n in D en m ark
A s h o rt s u m mary o f t h e p ub lic c o nsu lt a tio n r e sp onse s ( ig no rin g r e sp onse s t h a t
op pose d t h e C R it s e lf o r t h e p ro vis io ns s ta te d in t h e C R) is a s f o llo ws:	
S om e c rit ic iz e d t h a t t h e m in im um t a x le ve l w as c h o se n a nd t h a t o nly 2 23
(a nd n ot 2 22) w ould b e c o ve re d ( O xfa m , F H , 9 2-g ru p pen ). O th ers , s u ch a s
D riv k ra ft D anm ark , s u p port e d t h e m in im um im ple m en ta tio n. T he
g ove rn m en t r e p lie d t h a t m ore t h a n 3 3% w ould t rig ger c o m pen sa tio n f o r t h e
D UC p art n ers f o llo w in g t h e c o m pen sa tio n a gre em en t e n te re d in to in
c o nnectio n w it h t h e N ort h S ea A gre em en t o f 2 03.
S om e a rg ued t h a t t h e t a x w ould h a ve n eg a tiv e e ffe cts o n g re en in ve stm en ts ,
p art ic u la rly t h o se a im ed a t r e d ucin g e m issio ns in f o ssil fu el o p era tio ns a nd
C C S/C C U ( K alu n d borg R e	
50

2.3 .4 . F in la nd : F ossil f u el s o lid arit y c o ntrib utio n im ple m en ta tio n a nd
re a ctio ns	
Key f e a tu re s o f t h e im ple m en ta tio n o f t h e m and ato ry s o lid arit y
c o ntrib utio n in F in la nd	
The m and ato ry c o ntrib utio n is s e t t o 3 3 % o f p ro
1 2 % o f t h e a ve ra ge o f b efo re -t a x p ro
T he t a x a pplie s t o c o m panie s w here a t le ast 7 5 % o f t h e t a xa ble r e ve n ue in
t h e 2 23 in co m e y e a r d eriv e s f ro m e co no m ic a ctiv it ie s w ithin t h e c ru d e o il,
na tu ra l g a s, c o a l a nd r e
N o c o m panie s w ere id en ti
te m pora ry t a x f o r c o m panie s in t h e f o ssil fu el se cto r in F in la nd . 	
T he F in nis h g ove rn m en t s e n t a b ill t o t h e E dusk u nta o n 2 9 D ece m ber 2 22
p ro p osin g a t e m pora ry t a x o n p ro	 T he E dusk u nta	
p asse d t h e b ill in la te F eb ru a ry 2 23 .	
[43	]	
[4 4	]	
T he t e m pora ry t a x o n p ro
t h e s c o p e o f t h e s o lid arit y g ra nt a cco rd in g t o t h e C R; m ore t h a n 7 5 % o f t h e
tu rn ove r c o nsis ts o f t h e e xtra ctio n o f c ru d e o il and n a tu ra l g a s, t h e p ro d uctio n o f
re
T he r e su lt o f t h e b usin ess a ctiv it y m ust, in a cco rd ance w ith t h e s o lid arit y
co ntrib utio n a cco rd in g t o t h e C R, b e c o m pare d w ith t h e a ve ra ge r e su lt o f t h e
b usin ess a ctiv it y f o r t h e t a x y e a rs 2 18 –20 21, a nd t h e r e su lt o f t h e b usin ess a ctiv ity
durin g t h e t a x y e a r m ust b e t a xa ble t o t h e e xte n t t h a t it is h ig her t h a n 1 2 % o f t h e
a ve ra ge r e su lt o f t h e b usin ess a ctiv it y d urin g t h e c o m paris on p erio d. A cco rd in g t o
t h e C R, t h e t a xa ble p ro
3 3% .
2.3 .4 .1 . R ea ctio ns f ro m m ark e t a gen ts a nd t h e g en era l p ub lic in F in la nd
A cco rd in g t o t h e F in a nce C om mit t e e, n o c o m panie s in F in la nd w ere id en ti
w ould b e lia ble f o r t h e p ro p ose d t e m pora ry t a x f o r c o m panie s in t h e f o ssil fu el
se cto r.  T he g ove rn m en t d id n ot in clu d e a ny p ub lic c o nsu lt atio n r e sp onse s t o t h is t a x
in t h e p ro p osit io n’s s u m mary . F urt h erm ore , t h e F in a nce C om mitte e o f t h e F in nis h
Parlia m en t h a d n o o b je ctio ns t o t h e p ro p ose d t e m pora ry t a x f o r c o m panie s in t h e
fo ssil f u el s e cto r,	 n o r w ere a ny o b je ctio ns r a is e d d urin g t h e h ea rin g o f e xp ert s . 	[4 5	]	
43	.	; 	;	
.	
R P 3 20 /2 22 r d	L a ki s ä hkö a la n ja f o ssiilis te n p olt t o a in eid en … 3 6 3/2 23 - S äädökse t a lk u p erä is in ä - F IN LE X ®	
L a g o m t ill	
4 4	.	.	Ä re n d ets b eh a nd lin g sin fo R P 3 20 /2 22 r d	
4 5	.	.	F iU B 4 4/2 22 r d ( e d usk u nta .	
5 1

Aeria l v ie w o f s k ylin e H els in ki. C oa l f o r H ana sa a ri P ow er P la nt
P hoto : iS to ck
3 . I m pa cts o f t h e r e ve n ue c a p
The a im o f t h e r e ve n ue c a p w as t o c o lle ct e xtra ord in ary r e ve n ues f ro m p ow er
p ro d uce rs a nd r e d is trib ute t h em t o c o nsu m ers in o rd er t o c o m pen sa te f o r h ig h
ele ctric it y p ric e s. H ow eve r, if t h e t a x w ere t o le ad t o r e d uce d e le ctric ity s u p ply , t h e
re su lt c o uld b e e ve n h ig her p ric e s a nd /o r p ro b le m s w ith s e cu rit y o f s u p ply . W e
ana ly se d h ow a r e ve n ue c a p o n in fra m arg in al p ow er p ro d uctio n t e ch no lo gie s m ay
affe ct t h e in ce n tiv e s o f p ow er p ro d uce rs a nd m ark e t o utc o m es a nd a sse sse d t h e
sh o rt - a nd lo ng -t e rm im pacts o f t h e r e ve n ue c a p o n t h e w ho le sa le e le ctric ity
m ark e ts . T he s h o rt -t e rm im pacts a re r e la te d t o in ce n tiv es t o p ro d uce , w hile t h e
lo ng -t e rm im pacts a re r e la te d t o in ce n tiv es t o in ve st in n ew c a pacit y.
T he f o cu s o f t h is r e p ort is t h e w ho le sa le m ark e ts f o r e le ctric ity, i. e ., t h e m ark e ts f o r
th e p hysic a l e le ctric it y t ra de. T here a re t h re e s u ch m ark e ts w ith d if fe re n t t im e
fra m es: t h e d ay-a hea d m ark e t, t h e in tra day m ark e t a nd t h e b ala ncin g m ark e t.
N ord P ool is t h e m ain p ow er e xc h a ng e f o r e le ctric ity in t h e N ord ic	
52

co untrie s.	[46	]	
In t h is c h a pte r, w e s ta rt w it h a n a na ly sis o f t h e im pacts o f t h e r e ve n ue c a p a s it
w as im ple m en te d in S w ed en a nd D en m ark ( S ectio ns 3 .1 a nd 3 .2 ). F in la nd
im ple m en te d a t e m pora ry t a x o n p ro
re ve n ue c a p, w hic h w e a na ly se in S ectio n 3 .3 . F urt h erm ore , w e d is cu ss t h e im pacts
o n c o m petit iv e n ess in t h e d if fe re n t c o un trie s in S ectio n 3 .4 . S ectio n 3 .5 s u m mariz es
a nd c o nclu d es t h e c h a pte r.	
M ain t a ke a w ays:	
T he r e ve n ue c a p, a s im ple m en te d in S w ed en a nd D en m ark , d oes n ot a ffe ct
sh o rt -t e rm in ce n tiv e s f o r in fra m arg in a l p ro d uce rs , i. e ., p ro d uce rs w ho se
m arg in a l c o sts a re lo w er t h a n t h e m ark e t p ric e.
U sin g a s p ecia l r e ve n ue c a p f o r p ro d uce rs w ith h ig h m arg in al co sts , a s in
S w ed en a nd D en m ark , e n su re s t h a t in ce n tiv es a re p re se rv e d f o r t h ese
p ro d uce rs a s w ell.  
T he w ay t h e t a x w as im ple m en te d in S w ed en , w ith d ay-a hea d p ric e a s t h e
re fe re n ce p ric e a nd u sin g h o urly p ric e s f o r s e tt le m en ts , d oes n ot in
p ro d uce rs ’ s h o rt -t e rm in ce n tiv e s. T he im pacts o f u sin g t h e m onth ly
a ve ra ge p ric e , a s in D en m ark , a re n ot s tra ig htfo rw ard , b ut t h e in ce n tiv es
w ere p re se rv e d in D en m ark a s w ell.
A cco untin g f o r h ed gin g a gre em en ts a nd P PA s e n su re s t h a t t h e t a x is
b ase d o n a ctu a l r e a liz e d in co m e. T his r e d uce s t h e r is k o f p ote n tia l
dis to rt io ns. S in ce a la rg e s h a re o f p ro d uctio n is h ed ged , m any p ro d uce rs
a re n ot in
P ro
H ow eve r, t h e p ro
t a xe s in S w ed en a nd D en m ark .
A dm in is tra tiv e c o sts a re lik e ly t o b e lo w er w ith p ro
A dm in is tra tiv e c o sts a re lik e ly t o b e lo w er w hen u sin g t h e m onth ly a ve ra ge
p ric e a s a t a x b ase .
In o rd er t o m ain ta in t h e in ce n tiv e s t o in ve st in n ew c a pacit y, t h e
a uth o rit ie s s h o uld e m pha siz e t h e t e m pora ry a nd e xtra ord in ary n a tu re o f
th e e m erg en cy m ea su re s.	
46	.In a ddit io n t o N ord P ool, p hysic a l e le ctric it y is t ra ded b ila te ra lly t h ro ug h p ow er p urc h a sin g a gre em en ts ( P PA s).
T here a re a ls o m ark e ts f o r t ra din g 
m ark e ts o n N asd aq O M X.	
53

3.1 . S ho rt -t e rm im pa cts o f r e ve n ue c a p: I n ce n tiv e s t o
p ro d uce
The s u p ply c u rv e in t h e p ow er m ark e t c a n b e d ep ic te d b y a m erit o rd er c u rv e , w hic h
is a s te p w is e c u rv e o f d if fe re n t p ro d uce rs ’ m arg in al co sts in in cre a sin g o rd er. F ig ure
3 .1 s h ow s a s ty lis e d v e rs io n o f t h e m erit o rd er c u rv e f o r t h e N ord ic p ow er m ark e t.
M arg in a l c o sts in clu d e f u el a nd o p era tio n a nd m ain te n a nce ( O &M ) c o sts o f
p ro d uctio n.	[47	]	
W hic h t e ch no lo g y is m ark e t-c le a rin g ( i. e ., m arg in al) a t a ny g iv en t im e d ep en d s o n
se ve ra l t h in g s, s u ch a s d em and ( w hic h d ep en d s o n d ay, t im e o f d ay, w ea th er, e tc .) ,
f u el a nd C O	2 p ric e s, t h e a lt e rn a tiv e v a lu e o f w ate r in h yd ro p ow er r e se rv o ir s , w ind	
and s o la r c o nd it io ns, m ain te n a nce s c h ed ule s, a nd m ore . I n a ddit io n, t ra nsm is sio n
ca pacit y b etw een d if fe re n t g eo g ra phic a l a re a s m ay b e c o ng este d , le adin g t o
d if fe re n t p ric e s in d if fe re n t a re a s. I n lo w -d em and p erio ds, w ind p ow er o r n ucle ar
pow er m ay b e t h e m arg in a l t e ch no lo g ie s, w hile in h ig h-d em and p erio ds, g a s-
p ow er p la nts a re o ft e n t h e m arg in a l t e ch n o lo gie s; o th er p la nts a re in fra m arg in al.
The d ay-a hea d m ark e t u se s s o -c a lle d m arg in al p ric in g.	 T his m ea ns t h a t a ll	
p ro d uce rs w it h a cce p te d b id s g et t h e s a m e p ric e – t h e s p ot p ric e – a nd a ll
co nsu m ers p ay t h e s p ot p ric e . T he s p ot p ric e is t h e m ark e t-c le arin g p ric e t h a t
en su re s t h a t d em and e q ua ls s u p ply a t a ny g iv en t im e.	
[48	]	
47	.F or h yd ro p ow er, t h e a ctu a l o p era tio n c o sts a re v e ry lo w , b ut t h e m arg in a l c o sts in clu d e t h e o p port u n it y c o st
(w ate r v a lu e). T he o p port u n it y c o st r e
u ntil la te r. T he o p port u n it y c o st o f p ro d ucin g n ow is t o lo se t h e o p tio n t o p ro d uce la te r.	
4 8	.A ls o c a lle d p ay-a s-c le a r o r u n if o rm p ric in g . 	
5 4

Fig ure 3 .1 . M erit o rd er c u rv e a nd d ete rm in a tio n o f s p ot p ric e in t h e N ord ic p ow er
m ark e t
S ourc e : V is ta A na ly se
D ue t o u n if o rm m arg in a l p ric in g , a ll p ro d uce rs w ho se m arg in al co sts a re lo w er t h a n
th e s p ot p ric e ( i. e ., t h e in fra m arg in a l p ro d uce rs ) c o lle ct r e n t, w hic h is in dic ate d a s
“s ta nd ard r e n t” in F ig ure 3 .2 . T his r e n t c o ve rs 
in ve stm en ts f o r t h e o w ners . T he in cre a se in g a s p ric es in 2 22– 20 23 h a ve in cre a se d
th e m arg in a l c o sts o f g a s p ow er p ro d uctio n. T his h a s le d t o h ig her s p ot p ric es a nd
a ddit io na l in fra m arg in a l r e n ts f o r a ll o th er p ro d uce rs ( s e e F ig ure 3 .2 ). I t is t h is e xtra
r e n t t h a t t h e a uth o rit ie s s e ek t o c o lle ct f ro m in fra m arg in al p ro d uce rs . N ote t h a t
th e r e ve n ue c a p is a t a x o f 9 % o n a dd it io na l re n ts ; t h e p ro d uce rs k e ep 1 % .	
55

Fig ure 3 .2 . S ta nd ard r e n t a nd a ddit io na l in fra m arg in a l r e n ts d ue t o in cre a se d
p ow er p ric e s, a nd r e ve n ue t a x
S ourc e : V is ta A na ly se , b ase d o n P ollit t e t a l. ( 2 22)	[49	]	
In p rin cip le , a r e ve n ue c a p d oes n ot a ffe ct in fra m arg in al p ro d uce rs ’ in ce n tiv es t o
p ro d uce ; t h e p ro d uce rs ’ m arg in a l n et in co m e f ro m p ro d uctio n w ill still be p osit iv e
w hen eve r it w ould h a ve b een p osit iv e w itho ut t h e t a x. T he b eh a vio ur o f t h e
p ro d uce rs a nd t h eir b id s t o t h e m ark e t d o n ot c h a ng e. T he in ce n tiv e t o p ro d uce is
g ove rn ed b y a s in g le r u le : p ro d uce w hen eve r t h e r e ve n ues o f a n a ddit io na l u n it
(k W h) a re h ig her t h a n t h e c o sts o f p ro d ucin g t h a t u n it , i. e ., w hen m arg in al re ve n ues
a re la rg er t h a n m arg in a l c o sts . S in ce a ll in fra m arg in al p ro d uce rs r e ce iv e t h e
un if o rm p ric e in d ep en d en t o f t h eir o w n b id s, it is n ot r a tio na l to b id a bove o r b elo w
th e m arg in a l c o sts .	 O n t h e c o ntra ry , b y b id din g a nyth in g o th er t h a n m arg in al	
co sts , t h e p ro d uce r r is k s n ot a ctiv a tin g p ro
o r o p era tin g a t a lo ss ( if t h e b id is t o o lo w ). T hus, b id f u n ctio ns d ep en d o nly o n t h e
p ro d uce r’s o w n m arg in a l c o sts , e ve n w ith t h e r e ve n ue c a p.	
[50	]	
T he t e ch no lo g ie s lis te d in t h e C R a nd t h o se lia ble t o t h e t a x in S w ed en a nd
D en m ark w ere a ll in fra m arg in a l t e ch no lo gie s in p erio ds w hen g a s-
p la nts a re p ric e s e tt in g . M arg in a l p ro d uce rs ( g a s-
fro m t h e t a x. O th er p ote n tia lly m arg in a l p ro d uce rs , s u ch a s h yd ro p ow er p la nts w ith
sto ra ge, w ere a ls o e xe m pt. T he b id f u n ctio n o f h yd ro p ow er p ro d uce rs d ep en d s o n
exp ecta tio ns o f f u tu re p ric e s, a nd a r e ve n ue t a x c o uld a ffe ct t h eir p ro d uctio n
49	.P ollit t , M ., v o n d er F eh r, N ., B anet, C ., L e C oq , C ., W ille m s, B ., B en na to , A .R . a nd N avia , D . ( 2 22):
R eco m men d atio ns f o r a F utu re -P ro of E le ctric it y M ark e t D esig n, C en tre o n R eg ula tio n in E uro p e ( C ER RE),
D ece m ber 2 22 .	
5 0	.N ote t h a t t h is m ech a nis m is d if fe re n t in m ark e ts t h a t u se p ay-a s-b id m od els , s u ch a s t h e in tra -d a y m ark e t.	
5 6

in ce n tiv e s. T here w ere s p ecia l p ro vis io ns f o r o th er h ig h-c o st p ro d uce rs ( d eta ils in
S ectio n 3 .1 .1 ).
T o c o nclu d e: in p rin cip le , a r e ve n ue c a p d oes n ot c h a ng e in fra m arg in al p ro d uce rs ’
in ce n tiv e s t o p ro d uce . A s lo ng a s t h e in ce n tiv es t o p ro d uce in t h e s h o rt t e rm a re
p re se rv e d , t h e s u p ply s id e w ill f u n ctio n a s b efo re . H ow eve r, t h e d evil is in t h e d eta ils
– t h e s p eci
T here fo re , w e t u rn t o a n a na ly sis o f t h e s p eci
S w ed en a nd D en m ark : t h e s p ecia l a dju stm en ts f o r h ig h-c o st p ro d uce rs , t h e
se tt le m en t p erio d s a nd t h e u se o f r e fe re n ce p ric es. T he m ain q uestio n is w heth er a
r e ve n ue c a p, a s im ple m en te d in S w ed en a nd D en m ark , in
in ce n tiv e s t o p ro d uce a nd b id in t h e d if fe re n t m ark e ts .
3 .1 .1 . I m pa cts o f s p ecia l a dju stm en ts f o r h ig h-c o st p ro d uce rs
S om e o f t h e t e ch no lo g ie s lis te d in t h e C R h a ve h ig h m arg in al co sts ; t h ey a re
n o rm ally p ro
o nly b een e xtre m ely h ig h in t h e p ast y e a r b ut f u el co sts f o r b io m ass a nd o il ha ve
in cre a se d c o nsid era bly .
S pecia l r u le s w ere p erm it t e d f o r t h ese t e ch no lo gie s ( A rt ic le 8 .1 b in t h e C R). B oth
D en m ark a nd S w ed en u se d t h is p ossib ilit y. I n D en m ark , b io m ass- a nd o il-
p ow er p la nts h a d a s p ecia l p ro vis io n: t h e r e ve n ue c a p w as s e t a s a 
to p o f m arg in a l c o sts .	 I n S w ed en , t h e s p ecia l c a p f o r h ig h-c o st p ro d uce rs w as	
se t a t 1 .3 t im es t h e o p era tio n c o sts f o r p ro d uce rs u sin g c ru d e o il.	
[51	]	
[52	]	
In b oth c a se s, t h ese s p ecia l c a ps e n su re d t h a t m arg in al re ve n ues e xc e ed ed
m arg in a l c o sts . F urt h erm ore , o nly 9 % o f r e ve n ues e xc e ed in g t h e t h re sh o ld p ric e
w ere t a xe d . T hese a dju stm en ts m ain ta in ed t h e in ce n tiv es t o p ro d uce a nd
co ntrib ute d t o t h e s e cu rit y o f s u p ply .
H ow eve r, t h ese s p ecia l a dju stm en ts a re a n e xa m ple o f t h e r e g ula tio n b ein g
adm in is tra tiv e ly c o m plic a te d a nd d em and in g.
51.	.	L 6 8 - 2 22-2 3 ( 2 . s a m lin g ) ( o ve rs ig t): F ors la g t il lo v o m e t lo ft o ve r in d tæ gte r f ra e lp ro d uktio n. / F olk e tin g et	
5 2	.T he S w ed is h g ove rn m en t c la ri
g en era to rs w ould n ot.	
5 7

3.1 .2 . I m pa cts o f t h e s e tt le m en t p erio d s ( h o urly v s. m onth ly )
S w ed en a nd D en m ark u se d d if fe re n t s e tt le m en t in te rv a ls t o c a lc ula te t h e t a x b ase .
T his h a d d if fe re n t im pacts o n m arg in a l re ve n ues a nd t h us a ls o o n p ro d uce rs ’
in ce n tiv e s. T he m ain d if fe re n ce b etw een t h e t w o s e tt le m en t m eth o d s w as:	
T h e S w ed is h t a x a pplie d t o r e a liz e d r e ve n ues b a se d o n h o urly p ric e s	. W hile	
t h e t a x w as c a lc u la te d o n a m onth ly b a sis , t h e r e ve n ues t h a t f o rm ed t h e t a x
base w ere t h e s u m o f r e a liz e d h o urly e a rn in gs in s o -c a lle d q ua li
(i. e ., h o urs w hen t h e p ric e is a bove t h e c a p le ve l) , le ss t h e n um ber o f q ua li
ho urs m ult ip lie d b y t h e c a p le ve l ( s e e T e xt F ra m e 3 .2 f o r t h e c a lc ula tio n).
R eca ll t h a t t h e a ctu a l r e ve n ues f o rm ed t h e t a x b ase s in ce h ed gin g
agre em en ts a nd lo ng -t e rm c o ntra cts ( P PA s) w ere c o nsid ere d . T his m eth o d
im plie s t h a t c o m panie s w ere t a xe d f o r e ve ry M W h t h ey s o ld a t a p ric e a bove
th e c a p.
Th e D anis h t a x a pplie d t o r e a liz e d r e ve n ues b a se d o n a ve ra ge m onth ly
p ric e s	, w hic h im plie s a m onth ly r e a liz e d a ve ra ge “ n et p ric e” p er M W h	
(re ve n ue p er M W h). T he t a x b ase w as c a lc ula te d a s 9 % o f t o ta l m onth ly
re ve n ues le ss 1 8 E U R/M W h f o r e a ch M W h s o ld . A s in S w ed en , h ed gin g
agre em en ts a nd lo ng -t e rm c o ntra cts ( P PA s) a re t a ke n in to a cco unt. T his
m eth o d im plie s t h a t c o m panie s w ere o nly t a xe d if t h eir r e a liz ed a ve ra ge
re ve n ue p er M W h w as a bove t h e c a p. 	
A dm in is tra tiv e c o sts a re lik e ly t o b e lo w er w hen t h e m onth ly a ve ra ge p ric e is u se d
a s t h e t a x b ase , a s p oin te d o ut b y t h e D anis h a uth o rit ie s ( s e e C ha pte r 2 .2 .3 ).
T he d if fe re n ce s b etw een t h e t w o m eth o d s a re illu stra te d in F ig ure s 3 .3 a nd 3 .4 .
B oth 
p ote n tia l m arg in a l g ro ss r e ve n ue p er M W h f o r t h e n o n-h ed ged p ro d uctio n o f a
h yp oth etic a l p ro d uce r. F ig ure 3 .3 s h ow s t h a t S w ed is h p ro d uce rs w ere t a xe d f o r a ll
ho urs w hen t h e h o urly p ric e e xc e ed ed t h e c a p le ve l (re p re se n te d b y t h e s h a ded a re a
b etw een t h e p ric e c u rv e a nd t h e r e ve n ue c a p). D anis h p ro d uce rs , in c o ntra st, w ere
t a xe d o nly w hen t h e m onth ly a ve ra ge p ric e w as a bove t h e c a p le ve l, a s s h ow n in
F ig ure 3 .4 . T he a ve ra ge p ric e is f o un d w here t h e lig ht b lu e a nd d ark b lu e a re a s a re
b ala nce d . I n F ig ure 3 .4 , t h e a ve ra ge p ric e is b elo w t h e c a p; t h us, t h e p ro d uce r d id
not p ay a ny t a x in t h is c a se .	
58

Fig ure 3 .3 . S w ed is h m od el: H ourly p ric e	F ig ure 3 .4 . D anis h m od el: M onth ly
a ve ra ge p ric e	
F ig ure 3 .5 . D anis h m od el w it h lo w a nd h ig h a ve ra ge s p ot p ric e s
S ourc e : V is ta A na ly se
F ig ure 3 .5 illu stra te s t h e D anis h m od el in m ore d eta il. T he le ft p anel sh ow s a
s it u a tio n w it h lo w a ve ra ge p ric e s, a nd t h e r ig ht p anel sh ow s a s it u a tio n w ith h ig h
ave ra ge p ric e s. T he r e ve n ue c a p le ve l is in dic ate d b y t h e d ott e d lin e c ro ssin g b oth
p anels . P ro d uce rs in t h e le ft p anel w ere n ot t a x-lia ble b eca use t h e a ve ra ge p ric e
w as lo w er t h a n t h e c a p. H ow eve r, t h e a ve ra ge p ric e in t h e r ig ht p anel is a bove t h e
ca p, w hic h m ea ns t h a t p ro d uce rs p aid a t a x o f 9 % f o r e ve ry M W h p ro d uce d t h a t
m onth .
N ote t h a t t h e a ve ra ge p ric e s, a s s h ow n in F ig ure s 3 .4 a nd 3 .5 , a re s im ple a ve ra ges
o f a ll h o urly p ric e s in a m onth , w hic h im plie s t h a t o ur h yp oth etic al p ro d uce r h a d
id en tic a l p ro d uctio n in e a ch h o ur. I n r e a lit y, D anis h p ro d uce rs w ere t a xe d b ase d o n
a v o lu m e-w eig hte d a ve ra ge, w hic h m ea ns t h a t t h e a ve ra ge r e ve n ue f o r a ll
pro d uce rs w as n ot n ece ssa rily e q ua l t o t h e s im ple a ve ra ge o f h o urly p ric es. W e
dis c u ss t h is f u rt h er b elo w .	
59

There a re t w o m ain im plic a tio ns o f t h e d if fe re n t s c h em es:	
F ir s t, it is s ig ni	 sp ot p ric e d urin g a m onth	
is a bove 1 8 E U R/M W h t h a n t h a t a ny	 h o urs in a m onth w ill h a ve a p ric e	
e xc e ed in g 1 8 E U R/M W h. A s s h ow n in F ig ure 3 .6 , a ve ra ge s p ot p ric es in
D en m ark w ere a bove t h e c a p o nly in D ece m ber 2 22 ( a lt ho ug h p ric es
exc e ed ed t h e c a p in s o m e h o urs e ve ry m onth ).	 P ric e s w ere s ig ni	
lo w er in s p rin g 2 23 t h a n in s u m mer a nd e a rly a utu m n o f 2 23 ( a s s h ow n in
F ig ure 1 .1 ). H ow eve r, it is n ot e vid en t w hic h s y ste m c o uld p ro vid e t h e h ig hest
g ove rn m en t r e ve n ues o r t a x b urd en in r e a lit y s in ce t h e S w ed is h t a x o nly
a pplie d u ntil M arc h 2 23 .	
[53	]	
S eco nd , S w ed is h s h o rt -t e rm p ro d uctio n in ce n tiv es w ere le ss c o m plic ate d
th a n t h e in ce n tiv e s o f D anis h p ro d uce rs , w ho h a d t o c o nsid er t h e e ffe ct
m arg in a l p ro d uctio n w ould h a ve o n t h eir m onth ly u n it r e ve n ue. H ow eve r,
s h o rt -t e rm p ro d uctio n in ce n tiv e s w ere g en era lly p re se rv e d in b oth c o untrie s.
F or a m ath em atic a l p re se n ta tio n o f m arg in al n et r e ve n ue c a lc ula tio ns in t h e
tw o c o untrie s, s e e T e xt F ra m e 3 .1 . 	
F ig ure 3 .6 . H ourly v e rs u s m onth ly a ve ra ge p ric e s in D en m ark ( D K1, d ay-a hea d)
S ourc e :  V is ta A na ly se , b ase d o n d ata f ro m E N TS O -E
53	.T he D anis h g ove rn m en t h a s c a lc u la te d e xp ecte d t a x r e ve n ues u sin g d if fe re n t s e tt le m en t p erio d s f o r D ece m ber
20 22– J a nua ry 2 23 . B ase d o n a ctu a l s p ot p ric e s in t h e p erio d , t h ey s h ow ed t h a t u sin g m onth ly s e tt le m en t
re d uce d t a x r e ve n ues, c o m pare d t o u sin g s h o rt e r s e tt le m en t p erio d s. S ourc e :	
.	h tt p s:/ / w ww.f t .d k/s a m lin g /2 222 /lo vfo rs la g/L 68 /s p m /3 /in d ex.h tm	
6 0

Belo w , w e e xp la in w hy s h o rt -t e rm p ro d uctio n in ce n tiv es w ere p re se rv e d in g en era l.
The s h o rt -t e rm 	pro d uctio n in ce n tiv e s f o r S w ed is h in fra m arg in a l p ro d uce rs w ere	
u n ch a ng ed	 b eca use it is r a tio na l t o p ro d uce , e ve n f o r p ric es a bove t h e c a p le ve l, a s	
lo ng a s t h e p ric e c o ve rs m arg in a l c o sts . E ve n if m ost o f t h e m arg in al re ve n ue a bove
th e c a p le ve l is t a xe d , a p ro d uce r w ill s till ha ve a m arg in al in co m e o f 1 8 E U R/M W h
plu s 1 % o f t h e e xc e ed in g p ric e . F urt h erm ore , e ve n if a ll of t h e r e ve n ues a bove 1 8 0
E U R/M W h a re t a xe d ( in ste a d o f 9 % ), t h e in ce n tiv es o f in fra m arg in al p ro d uce rs
w ill n ot b e a ffe cte d s in ce m arg in a l r e ve n ues a t 1 8 E U R/M W h w ould c o ve r
m arg in a l c o sts . A n e xc e p tio n is h yd ro p ow er p la nts w ith a s to ra ge c a pacit y o f le ss
th a n 2 4 h o urs , w hic h a re t a x lia ble in S w ed en .	 A t a x le ve l o f 9 % ( in ste a d o f	
10 0% ) w ould p re se rv e c o rre ct in ce n tiv e s f o r t h ese p la nts in s it u a tio ns w here p ric es
p ro d uctio n b etw een h o urs . F in a lly , s e tt in g t h e t a x a t 1 0% c o uld h a ve w ors e n ed
in ce n tiv e s t o p ro d uce f o r h ig h-c o st t e ch no lo gie s in s o m e s it u a tio ns; t h e s p ecia l
adju stm en ts d esc rib ed in C ha pte r 3 .1 .1 e n su re t h a t in ce n tiv es a re m ain ta in ed .	
[54	]	
A s m en tio ned , 	D anis h s h o rt -t e rm p ro d uctio n in ce n tiv e s a re n o t a s s tra ig htfo rw ard	
a s in S w ed en , b ut in ce n tiv e s w ere p re se rv e d in D en m ark a s w ell	. H ow eve r, t h is is	
n ot im med ia te ly e vid en t, t h o ug h, b eca use p ro d uce rs f a ce a t ra de-o ff in s o m e
sit u a tio ns a nd s p ot p ric e le ve ls .
T here a re t w o m ain c a se s t o c o nsid er. O ne is w hen t h e e xp ecte d a ve ra ge u n it
re ve n ue is b elo w t h e c a p. I n t h is c a se , p ro d uce rs a re n ot t a x lia ble , a nd t h e
in ce n tiv e s t o p ro d uce a re t h ere fo re id en tic al to t h o se in t h e n o n-t a x c a se .
T he o th er c a se is w hen t h e e xp ecte d u n it r e ve n ue is a bove t h e c a p. I n t h is c a se ,
p ro d uce rs m ust c o nsid er t w o e ffe cts o f t h e r e ve n ue c a p o n t h eir m arg in al re ve n ues:	
T h e d ir e ct e ffe ct	 is t h e m arg in a l r e ve n ue in t h e h o ur in q uestio n, n et o f t a x.	
A s lo ng a s t h e s p ot p ric e is h ig her t h a n t h e t a x p aym en t p er M W h, t h is e ffe ct
is p osit iv e . H ow eve r, in s it u a tio ns w it h h ig h e xp ecte d u n it p ric es a nd lo w
ho urly p ric e s, t h is e ffe ct c o uld g iv e p ro d uce rs a n in ce n tiv e t o s to p p ro d uctio n.
C onsid er, f o r e xa m ple , a p ro d uce r w ho, d ue t o v e ry h ig h p ric es s o f a r t h a t
m onth , e xp ects t o b e t a x lia ble , i. e ., t h eir u n it r e ve n ue is a bove 1 8 0
E U R/M W h. F or s im plic it y, w e d is re g a rd a ny s ta rt a nd s to p c o sts a nd o th er
n o n-lin ea rit ie s. T hen c o m es a p erio d o f e xp ecte d lo w p ric es. A ssu m e f o r
sim plic it y t h a t t h e im plie d a ve ra ge p ric e t h a t m onth is e xp ecte d t o b e 2 8 0
E U R/M W h. T his im plie s t h a t p ro d uce rs m ust p ay a r e ve n ue t a x o f 9 0
E U R/M W h t h a t m onth o n e a ch u n it s o ld : ( 2 8 E U R/M W h 	18 0	
E U R/M W h) x  0 .9 = 9 E U R/M W h. I n h o urs w here t h e s p ot p ric e is b elo w 9 0	
54	.C ha pte r 5 .4 o f t h e S w ed is h b ill.	
6 1

EU R/M W h, f o r e xa m ple 8 E U R/M W h, t h e n et m arg in al re ve n ue o f
p ro d ucin g e le ctric it y t h a t h o ur is - 1 E U R/M W h, w hic h is n eg a tiv e, e ve n if
g ro ss m arg in a l r e ve n ue is p osit iv e . T hus, t h e d ir ect t a x e ffe ct in t h is e xa m ple
giv e s t h e p ro d uce r a n in ce n tiv e t o s to p p ro d uctio n a lt og eth er.	[5 5	]	
T h e in d ir e ct e ffe ct	 o n m arg in a l r e ve n ue w ork s t h ro ug h u n it p ric e. P ro d ucin g	
in a n h o ur w it h lo w p ric e s w ill r e d uce t h e ( m onth ly a ve ra ge) u n it p ric e a nd
th us r e d uce t h e t a x lia bilit y n ot o nly f o r c u rre n t p ro d uctio n b ut a ls o f o r a ll
pre vio us p ro d uctio n t h a t m onth . T hus, t h e in dir ect e ffe ct g iv es p ro d uce rs
in ce n tiv e s t o in cre a se p ro d uctio n ( if p ossib le), i. e ., t h e o p posit e o f t h e d ir ect
e ffe ct in lo w -p ric e s it u a tio ns.	[56	]	
O ur n um eric a l c a lc u la tio ns in d ic a te d t h a t 	t h e p osit iv e in d ir e ct e ffe ct is lik e ly t o b e	
stro ng er t h a n t h e n eg a tiv e d ir e ct e ffe ct	 in lo w -p ric e s it u a tio ns. T he r e a so n f o r t h is	
is t h a t t h e in d ir e ct e ffe ct a ffe cts a ll p ro d uctio n h o urs , w hile t h e d ir ect e ffe ct o nly
a ffe cts a s in g le h o ur.
5 5	.W e h a ve s e en t h is k in d o f b eh a vio ur b y c o nsu m ers in N orw ay, w here t h e h o use h o ld e le ctric it y p ric e s u b sid y w as
ca lc u la te d o n t h e b asis o f m onth ly a ve ra ge p ric e . C onsu m ers w ere , in e ffe ct, p aid t o c o nsu m e e le ctric it y in h o urs
w here t h e p ric e w as p osit iv e b ut w here t h e e xp ecte d s u b sid y m ad e c o nsu m ers ’ “ n et p ric e ” n eg a tiv e . A n
im port a nt d if fe re n ce h ere is t h a t t h e a ve ra ge p ric e in N orw ay is n ot v o lu m e-w eig hed b ut c o m ple te ly e xo g en o us
to a ny s in g le c o nsu m er. T here fo re , N orw eg ia n h o use h o ld s f a ce d o nly t h e d ir e ct e ffe ct a nd n ot t h e in d ir e ct e ffe ct.	
5 6	.N ote t h a t p ro d uctio n in ce n tiv e s a re p re se rv e d a ls o in c a se s w here t h e e xp ecte d p ric e is a bove t h e e xp ecte d u n it
p ric e . F or a n a ddit io na l M W h s u p plie d , t a x p aym en t in cre a se s, b ut g ro ss r e ve n ue in cre a se s e ve n m ore , r e su lt in g
in a n et p osit iv e .	
6 2

Te xt F ra m e 3 .1 . D if fe re n ce b etw een S w ed is h a nd D anis h s h o rt -t e rm
p ro d uctio n in ce n tiv e s
In b oth c o untrie s, t o ta l m onth ly n et r e ve n ues f ro m p ro d uctio n a re g iv en b y t h e
exp re ssio n	
R	� 	���	�	
Gro ss r e ve n ue	
 	�p	�x	����	�C	�x	�	
t
�	t	t	
t
�	t	t	
Ta x	
 	� ��	�π	��	τ�	�x	�	
t
�	t	
w here 	 is t h e s p ot p ric e , 	 is p ro d uctio n, 	 is u n it p ro d uctio n c o st, .9 c a ptu re s t h a t	
90 % o f r e ve n ues a bove t h e c a p a re lia ble t o t a x, 	 is t h e s e tt le m en t p ric e , 	 is t h e	
ca p le ve l in E U R/M W h a nd s u b sc rip t 	 in d ic a te s h o ur.	
p	x	C	
π	τ	
t	
In S w ed en , 	, s in ce t h e t a x w as d ete rm in ed b y t h e h o urly s p ot p ric e. I n	
D en m ark , 	, w hic h is t h e a ve ra ge r e a liz e d p ric e p er u n it s o ld d urin g t h e m onth	
(a ve ra ge u n it r e ve n ue). T his is a v o lu m e-w eig hte d a ve ra ge, s o 	,	
w hic h d ep en d s o n 	
π	� 	p	�t	
π	� 	�p	
�� 	��	��p	�x	�����	x	�	p	t	t	t	t	t	
x	��t	
W e s u p pre ss t h e t im e s u b sc rip ts 	 in t h e f o llo w in g .t	
In S w ed en	, t h e m arg in a l n et r e ve n ue ( i. e ., t h e r e ve n ue g a in ed o r lo st f ro m p ro d ucin g	
anoth er u n it a ft e r t a x) in a ny g iv e n h o ur is t h us:	
Mar ginal Net R evenue	� 	p	��	C	��	���	�p	��	�� �	�	SE	
if t h e p ric e is a bove t h e c a p, a nd 	 if t h e p ric e is b elo w t h e c a p. S w ed is h	
p ro d uce rs t h us o nly c o nsid er t h e d ir e ct e ffe ct o n r e ve n ue p ro d uctio n a t a ny g iv en
tim e.	
p	��	C	
In D en m ark	, t h e m arg in a l n et r e ve n ue is m ore c o m plic ate d b eca use p ro d uce rs a ls o	
ha d t o c o nsid er h ow p ro d uctio n 	 a t a ny t im e w ould a ffe ct t h e a ve ra ge u n it	
re ve n ue 	:	
�x�	
�	��p	
Mar ginal Net R evenue	� 	 ��	 	DK	
Dir e ct	
 	p	��	C	��	���	�	���	�� �	�	p	
In d ir e ct	
 	� ��	 	x�	�Fx
�F	�p	�	
w here 	 f o r s p ot p ric e s b elo w t h e e xp ecte d m onth ly u n it r e ve n ue. T he d ir ect	
e ffe ct is t h e m arg in a l r e ve n ue f o r t h e s p eci
sim ila r t o t h e S w ed is h m od el b ut n ote t h a t t h e t a x t e rm in clu des a ve ra ge u n it
re ve n ue a nd n ot h o urly p ric e . T he in d ir e ct e ffe ct is t h e im pact o n m arg in al n et
re ve n ues r e su lt in g f ro m t h e m arg in a l c h a ng e in u n it r e ve n ue f ro m c u rre n t
p ro d uctio n a pplie d t o a ll m onth ly p ro d uctio n.	
d	��dx	�	�	p	
63

3.1 .3 . I m pa cts o f u sin g t h e d ay-a hea d p ric e a s a r e fe re n ce p ric e o n
in ce n tiv e s t o s h if t s u p ply b etw een m ark e ts
In S w ed en , t h e d ay-a hea d p ric e w as u se d a s a r e fe re n ce w hen c a lc ula tin g r e ve n ue
fro m a ll m ark e ts ( a dju ste d f o r h ed gin g a gre em en ts ). F or e xa m ple , if t h e d ay-a hea d
pric e w as 1 9 E U R/M W h f o r a g iv e n h o ur a nd a p ro d uce r r e ce iv ed 2 10 E U R/M W h
fro m s u p ply in g t o t h e in tra day m ark e t f o r t h e s a m e h o ur, t h is p ro d uce r w as t a xe d
a cco rd in g t o 1 9 E U R/M W h, e ve n if t h e r e a liz ed r e ve n ue p er M W h o n t h e in tra day
m ark e t w as h ig her. T he s a m e a pplie d if t h e p ric e o n t h e in tra day m ark e t w as lo w er
– p ro d uce rs w ere t a xe d a cco rd in g t o t h e d ay-a hea d p ric e.
In D en m ark , h ow eve r, t h e a ctu a l p ric e o n t h e r e le va nt m ark e t w as u se d a s t h e t a x
base ( a dju ste d f o r h ed gin g a gre em en ts ). T his w as d ir ectly s ta te d in t h e p ro vis io ns
a nd w as a n im plic a tio n o f t h e m onth ly s e tt le m en t in te rv a l ch o se n in D en m ark .
S in ce t h e a ve ra ge r e ve n ue p er M W h d urin g a m onth w as t h e t a x b ase , r e ve n ue
fro m m ark e ts w it h r e la tiv e ly h ig her p ric es in cre a se d p ro d uce rs ’ a ve ra ge r e ve n ues
a nd t h us t h e t a x b ase .
S om e S w ed is h p ub lic c o nsu lt a tio n s ta te m en ts a rg ued t h a t u sin g t h e d ay-a hea d
pric e a s a r e fe re n ce c o uld h a ve r e d uce d liq uid ity in d ay-a hea d m ark e ts a nd
in cre a se d liq uid it y in m ark e ts c lo se r t o r e a l tim e b eca use e xp ecte d p ric es a re o ft e n
h ig her in t h ese m ark e ts .	 S in ce t h e d ay-a hea d p ric e w as u se d a s a r e fe re n ce ,	
su p plie rs c o uld w it h d ra w s u p ply f ro m t h e d ay-a hea d m ark e t, h o p in g t o in cre a se
a ctu a l r e ve n ues w hile t h e t a x b ase s ta ye d t h e s a m e. P ric es o n t h e d ay-a hea d
m ark e t c o uld in cre a se d ue t o r e d uce d s u p ply o r in cre a se d o p port u n it y c o st o f
su p ply in g o n t h e d ay-a hea d m ark e t b eca use o f h ig her e xp ecte d r e tu rn s o n t h e
in tra day a nd b ala ncin g m ark e ts .	
[57	]	
H ow eve r, p ro d uce rs ’ in ce n tiv e s w ill n ot d if fe r f ro m t h o se b efo re t h e t a x, r e g a rd le ss
o f w heth er a r e fe re n ce p ric e is u se d . A p ro d uce r h a s a n in ce n tiv e t o p ro d uce in
M ark e t B if t h e e xp ecte d m arg in a l n et r e ve n ue in M ark e t B is h ig her t h a n in M ark e t
D 	 I f t h e p ric e f ro m M ark e t D is u se d a s a r e fe re n ce , t h e p ro d uce rs	
h a ve in ce n tiv e s t o s h if t p ro d uctio n t o M ark e t B if	
�M	R	��!	M	R	��	B	D	
�	�	�	
p	���	�� �	�p	���	�� �	��!	p	���	���	�p	���	�� �	�	B	D	D	D	
p	��!	p	�	B	D	
B eca use t h e t a x t e rm c a nce ls o ut, it is c le ar t h a t p ro d uce rs s h if t p ro d uctio n o nly if
t h e g ro ss p ric e is h ig her in M ark e t B .
57	.S ee, f o r e xa m ple , t h e c o nsu lt a tio ns s ta te m en t f ro m N ord P ool.	
6 4

If a ctu a l p ric e s a re u se d t o c a lc u la te t h e t a x in b oth m ark e ts , t h e d ecis io n r u le is :	
�	�	�	
p	���	���	�p	���	�� �	��!	p	���	���	�p	���	�� �	�	B	B	D	D	
p	���	���	p	��!	p	���	���	p	�	B	B	D	D	
� ��	p	��!	���	p	�	B	D	
p	��!	p	�	B	D	
B y c o m parin g t h e t w o s c e n a rio s, o ne c a n s e e t h a t t h e in ce n tiv es d ep en d o nly o n
(g ro ss) p ric e . P ro d uce rs s h if t s u p ply b etw een m ark e ts o nly if t h e p ric e in o ne
m ark e t is h ig her t h a n in t h e o th er.
T hese r e su lt s a pply e ve n if o nly o ne m ark e t p ric e is a bove 1 8 E U R/M W h w hile t h e
oth er is b elo w . I f a r e fe re n ce p ric e is u se d , t h e t a x t e rm o n e a ch s id e o f t h e
in eq ua lit y e it h er c a nce ls o ut ( if t h e r e fe re n ce p ric e is a bove t h e c a p) o r d oes n ot
en te r a t a ll ( if t h e r e fe re n ce p ric e is b elo w t h e c a p). I n b oth c a se s, t h e g ro ss s p ot
p ric e d ete rm in es p ro d uctio n in ce n tiv e s.
If , o n t h e o th er h a nd , a ctu a l m ark e t p ric es a re u se d , w e h a ve ( f o r 	 a nd 	
):	
p	��!	�� �	B	
p	��	���	D	
�	�	�	
p	���	���	�p	���	�� �	��!	p	�	B	B	D	
���	p	��	�� �	�!	p	�	B	D	
T his in eq ua lit y h o ld s f o r a ll s it u a tio ns w here 	 a nd 	, w hic h m ea ns	
th a t in ce n tiv e s a re m ain ta in ed e ve n in s it u a tio ns w here o ne m ark e t is t a xe d a nd
th e o th er is n ot.	
p	��!	�� �	B	p	��	���	D	
[58	]	
H en ce , u sin g t h e d ay-a hea d p ric e a s a r e fe re n ce p ric e f o r a ll m ark e ts d oes n ot
a ffe ct in ce n tiv e s t o s h if t s u p ply b etw een w ho le sa le m ark e ts ( f ro m d ay-a hea d t o
in tra day).
H ow eve r, g ove rn m en t t a x r e ve n ues a re a ffe cte d b y t h e c h o ic e o f r e fe re n ce p ric e. I f
t h e d ay-a hea d m ark e t o n a ve ra ge h a s t h e lo w est p ric es o f t h e t h re e w ho le sa le
m ark e ts , u sin g t h e d ay-a hea d p ric e a s a r e fe re n ce p ric e w ill, a ll els e b ein g e q ua l,
giv e a lo w er g ove rn m en t t a x in co m e t h a n u sin g a ctu a l p ric es.
3 .1 .4 . I m pa cts o f in ce n tiv e s o n t h e in tra d ay m ark e t
In c o ntra st t o t h e d ay-a hea d m ark e t, w hic h u se s m arg in al p ric in g, t h e in tra day
m ark e t u se s a p ay-a s-b id m od el ( s e e T e xt F ra m e 3 .2 ). I n t h e in tra day m ark e t,
s u p plie rs f a ce a t ra de-o ff w hen s u b m it t in g t h eir b id s b eca use t h ey a re p aid t h eir
b id s a nd n ot t h e m ark e t-c le a rin g p ric e . O n t h e o ne h a nd , s e lle rs a re t e m pte d t o b id
above t h eir m arg in a l c o sts s in ce t h ey a re p aid t h eir b id s. O n t h e o th er h a nd ,
bid din g t o o h ig h in vo lv e s t h e r is k o f n ot b ein g d is pa tc h ed a nd g a in ing
58	.T he o p posit e c a se , w it h 	 a nd 	, g iv e s t h e e q uiv a le n t in eq ua lit y a s t h e 	
su b sc rip ts s w it c h ed a ro un d ( re m em ber t h a t t h e n o -t a x in ce n tiv e is s till t o s u p ply t o t h e m ark e t w it h t h e h ig hest
p ric e ). T here fo re , t h e r e su lt h o ld s t h e o th er w ay a s w ell.	
p	��	���	B	p	��!	���	D	
6 5

noth in g .	 T he m arg in a l r e ve n ues o f p ro d uce rs t h us d ep en d o n t h eir b id s a nd t h eir	
m arg in a l c o sts , a nd t h eir b id s d ep en d o n e xp ecte d a ve ra ge p ric es ( a nd m arg in al
co sts ).	
[5 9	]	
A s im ple m en te d in S w ed en , a r e ve n ue c a p u se s t h e d ay-a hea d m ark e t p ric e a s t h e
re fe re n ce p ric e . T hus, t h e r e ve n ue c a p w ill not a ffe ct b eh a vio ur in t h e in tra day
m ark e t b eca use t h e o p tim al b id f u n ctio ns a re n ot a ffe cte d b y t h e d ay-a hea d p ric e,
o r t h e d ay-a hea d p ric e a ffe cts t h e e xp ecte d p ric es o n t h e in tra day m ark e t in t h e
sa m e w ay f o r a ll a gen ts , a nd t h is p ric e is c o m mon k n ow le d ge t o a ll bid ders .
T he D anis h im ple m en ta tio n d id n ot h a ve a n h o urly s e tt le m en t b ut u se d t o ta l
re ve n ues t o c a lc u la te t h e t a x b ase . T hus, it w as s till op tim al to m axim ize r e ve n ues
fo r g iv e n m arg in a l c o sts , w hic h im plie s t h a t b eh a vio ur w as u n a ffe cte d b y t h e t a x.
H en ce , t h e im ple m en ta tio ns in D en m ark a nd S w ed en e n su re d t h a t in ce n tiv es in t h e
in tra day m ark e t w ere n ot a ffe cte d .
Te xt F ra m e 3 .2 . W ha t is t h e in tra day m ark e t?
T he in tra day m ark e t is a m ark e t o f p hysic a l p ow er d eliv ery w here p art ic ip ants
a dju st t h eir p osit io ns b etw een t h e c lo sin g o f t h e d ay-a hea d m ark e t a nd t h e t im e o f
d eliv e ry . I n t h e N ord ic c o untrie s, t h e in tra day m ark e t is c a lle d E lb as ( E le ctric ity
Bala nce A dju stm en t S yste m ) a nd is o p era te d b y N ord P ool. E lb as is u se d f o r
tra din g in te rn a lly in a c o untry a nd a cro ss b ord ers .
T he in tra day m ark e t c o ntin ua lly c o nnects b uye rs a nd s e lle rs w ho m ake b ila te ra l
tra des. M ark e t p art ic ip ants p la ce b uy a nd s e ll ord ers f o r e n erg y a nd p ric e
co m bin a tio ns f o r c e rt a in t im e p erio d s ( e .g ., s e ll 50 M W h f o r 4 7 E U R/M W h a t
12 :0 0–13 :0 C ET).
T he in tra day m ark e t s e tt le s o rd ers u sin g a p ay-a s-b id m od el: s e lle rs a re p aid t h eir
a sk in g p ric e , a nd b uye rs a re p aid t h eir b id din g p ric e. N ord P ool m atc h es o rd ers t h a t
in te rs e ct ( i. e ., w here t h e p ric e lim it o f t h e s e ll ord er is n ot h ig her t h a n t h e p ric e lim it
of t h e b uy o rd er) , a nd t h e s e tt le m en t p ric e f o r e a ch t ra de is d ete rm ined b y t h e
o rd er 
t h e b uy b id c a m e 
ca se s.	[60	]	
59	.W it h c o m ple te in fo rm atio n, p ay-a s-b id m ark e ts a re e q uiv a le n t t o p ay-a s-c le a r m ark e ts . H ow eve r, in r e a lit y,
in fo rm atio n is in co m ple te , w hic h m ay d is to rt t h e m erit o rd er a s a r e su lt o f in fo rm atio n a sy m metry .	
6 0	.S ee 	h tt p s:/ / w ww.n o rd poolg ro up .c o m /4 8 fa 8 /g lo b ala sse ts /d ow nlo a d-c e n te r/ c a cm -re g ula tio n/p ub lic -	
d esc rip tio n-o f-t h e-c o ntin uo us-t ra din g -m atc h in g -a lg orit h m .p df	
6 6

3.2 . L ong -t e rm im pa cts o f r e ve n ue c a p: I n ce n tiv e s t o
in ve st	
M ain t a ke a w ays:	
In ve stm en t d ecis io ns d ep en d o n e xp ecta tio ns a bout f u tu re p ric es a nd
fu tu re c a sh 
A r e ve n ue c a p m ay in
r e d uce t h e n et p re se n t v a lu e o f in ve stm en ts .
S ett in g t h e r e ve n ue c a p le ve l a bove e xp ecte d p ea k p ric es c o ntrib ute s t o
p re se rv in g in ce n tiv e s t o in ve st.
It is v it a l t h a t a uth o rit ie s e m pha siz e t h e t e m pora ry a nd o ne-t im e n a tu re
o f s u ch t a xe s in o rd er t o m ain ta in in ve stm en t in ce n tiv es. 
 	
M any in fra m arg in a l t e ch no lo g ie s h a ve lo w o p era tio n c o sts b ut h ig h c a pit al co sts .
C apit a l c o sts a re r e co up ed t h ro ug h p ro
h ig her t h a n t h e m arg in a l c o st. T his is s h ow n a s s ta nd ard a nd a ddit io na l
in fra m arg in a l r e n ts in F ig ure 3 .2 . A r e ve n ue c a p r e d uce s t h e r e ve n ue o f
in fra m arg in a l p ro d uce rs b y c a ptu rin g p a rt o f t h e a ddit io na l in fra m arg in al re n ts .
T his r e d uce s t h e a ft e r- t a x p ro
p ro je cts u n p ro
In ve sto rs 
F utu re c a sh 
fu tu re c a sh 
q uestio n is w heth er f e a tu re s o f t h e c u rre n t c ris is a nd g ove rn m en ts ’ r e sp onse s
th ere to m ay s ig ni
In g en era l, u n ce rt a in ty a bout t h e f u tu re is a c o st t h a t in ve sto rs in clu de in t h eir
ca lc u la tio ns, e ffe ctiv e ly r a is in g t h e r e q uir ed y ie ld . S ud den , u n exp ecte d t a xe s m ay
in cre a se t h e g en era l u n ce rt a in ty a bout f u tu re in co m e a nd c o st s tre a m s. T his r a is es
th e d is c o unt r a te u se d in n et p re se n t v a lu e c a lc ula tio n, a s in ve sto rs p re fe r a m ore
c e rt a in in co m e in t h e n ea r f u tu re o ve r a m ore u n ce rt a in in co m e in t h e d is ta nt
fu tu re . H en ce , a r e ve n ue c a p m ay le a d t o a h ig her d is co unt r a te a nd f e w er
in ve stm en ts . T his u n ce rt a in ty is n ot u n iq ue t o t h e e le ctric ity in dustry b ut a pplie s t o
a ll in d ustrie s in t h e e co no m y. T here is a lw ays a r is k t h a t n ew p olic ies a nd t a xe s w ill
be im ple m en te d , f o r e xa m ple , a ft e r a n e le ctio n.
A r e la te d q uestio n is a t w hic h le ve l t h e c a p is s e t, i. e ., w hic h p ric e le ve l is p erc e iv ed
a s “ e xtra ord in a ry ”. T he r e ve n ue c a p im ple m en te d in S w ed en a nd D en m ark w as s e t	
67

at le ve ls e xc e ed in g e xp ecte d p ea k p ric e s b efo re R ussia ’s in va sio n o f U kra in e,
a cco rd in g t o t h e C R a nd a n im pact a na ly sis b y t h e S w ed is h g ove rn m en t.	 	 T his	
im plie s t h a t t h e a ctu a l m arg in a l r e ve n ues a ft e r t a x a re h ig her n ow t h a n w ha t w as
exp ecte d b efo re t h e w ar a nd s u f
T hus, o ne m ay in d uce r e ve n ues t o c o ve r c a pit al co sts , a nd o nly w indfa ll pro
c o lle cte d b y e m erg en cy m ea su re s, n ot o rd in ary r e tu rn o n in ve stm en ts .	
[61	][6 2	]	
E le ctric it y p ric e s h a ve b een m uch h ig her in 2 22– 20 23 t h a n in p re vio us y e a rs a nd
w ill b e h ig her t h a n e xp ecte d in t h e f u tu re . I t is u n lik ely t h a t a ny in ve sto r w ould
in ve st s o le ly o n t h e b asis o f t h e p re se n t e xtra ord in ary h ig h p ric es, a s in ve sto rs
c o nsid er lo ng -t e rm e xp ecta tio ns a bout p ric es. T he p re se n t u n ce rt a in ty a bout p ric es
a nd t a xe s m ay c a use s o m e in ve sto rs t o p ostp one m akin g d ecis io ns.
T o c o nclu d e, t h e m ain q uestio n is w heth er in ve sto rs b elie ve t h a t p olic ym ake rs w ill
im ple m en t r e ve n ue c a ps o r o th er e xtra ord in ary m ea su re s a ga in w hen eve r p ric es
a re e xtra ord in a rily h ig h, o r w heth er t h ey p erc e iv e t h ese m ea su re s a s t e m pora ry ,
o ne-t im e m ea su re s d ue t o a n e xtra ord in a ry s it u a tio n. T he C R w as in tro d uce d a s a n
exc e p tio na l, t a rg ete d a nd t im e-lim it e d m ea su re . T he a uth o rit ie s c a n a vo id n eg a tiv e
im pacts o n in ve stm en ts b y e m pha siz in g t h a t t h ese m ea su re s a re e xtra ord in ary
in d eed , t h a t t h ey w ere in tro d uce d a s a r e sp onse t o a c ris is , a nd t h a t t h ey a re
u n lik e ly t o b e u se d a ga in .
61.	T he C R, r e cit a l 2 8 .	
62	.	 F i2 22 /0 3328 ( 1 2 D ece m ber 2 22).	T ill	
6 8

3.3 . I m pa cts o f t h e t e m pora ry t a x o n p ro fit s in F in la nd	
M ain t a ke a w ays:	
P ro
T he p ro
H en ce , a dm in is tra tiv e c o sts a re lo w er t h a n in S w ed en a nd D en m ark .
T he F in nis h t a x is e x p ost	 h ig her t h a n t h e r e ve n ue t a x in S w ed en a nd	
D en m ark ; a ve ra ge s p ot p ric e s h a ve b ee n b elo w t h e e q uiv ale nce le ve l o f
28 E U R/M W h.
T he p ro
in ve stm en ts in e le ctric it y in d ustry b ut m ay in
c a pit a l b etw een d if fe re n t s e cto rs o f t h e e co no m y.
T he a uth o rit ie s s h o uld e m pha siz e t h e t e m pora ry a nd e xtra ord in ary n a tu re
o f t h e t a x t o r e d uce n eg a tiv e e ffe cts o n in ve stm en ts .	
F in la nd im ple m en te d a t a x o n p ro
o f p ow er p ro d uce rs ’ p ro
t a xe d . T he p ro
s p ot p ric e s o f 2 8 E U R/M W h f ro m D ece m ber 2 22– J u n e 2 23 .
T he la w d oes n ot d is c rim in a te b etw ee n g en era tio n t e ch no lo gie s b ut a pplie s t o a ll
te ch no lo g ie s. T he t a x is t o b e le vie d o n p ro
in a ddit io n t o t h e o rd in a ry c o rp ora te in co m e t a x.	[63	]	
A p ro
c o sts a re lo w er.
3 .3 .1 . T h e F in nis h p ro fit t a x w ill n o t a ffe ct w ho le sa le m ark e ts in t h e
sh o rt r u n
Pro
in ce n tiv e s t o m axim iz e p ro
o th erw is e , f o r e xa m ple , b y s h if t in g p ro d uctio n s c h ed ule s o r s h utt in g d ow n, w ould
re d uce p ro
e le ctric it y s e cto r b eh a ve a s b efo re a nd o ffe r t h e s a m e s u p ply in t h e s a m e m ark e ts
a s b efo re . H en ce , w ho le sa le m ark e ts a re lik ely t o b e u n a ffe cte d b y a t e m pora ry
p ro
6 3	.F or f u rt h er d eta ils , s e e C ha pte r 5 .1 .2 o f 	.	t h e F in nis h b ill	
6 9

3.3 .2 . W ill t h e F in nis h p ro fit t a x a ffe ct in ve stm en ts in t h e lo ng r u n ?
The t a x o n p ro
in ve stm en t p ro je cts in t h e e le ctric it y s e cto r. T his a lo ne d oes n ot a ffe ct t h e r e la tiv e
pro
t e ch no lo g ie s, b ut it m ay a ffe ct t h e a llo ca tio n o f ( s c a rc e ) c a pit al b etw een d if fe re n t
se cto rs o f t h e e co no m y a nd f o re ig n in ve stm en ts .
T he e ffe ct o n in ve stm en ts d ep en d s o n e xp ecta tio ns, a s d is cu sse d in S ectio n 3 .2 . I f
t h e t a x is b elie ve d t o b e a t e m pora ry m ea su re d ue t o a n e xtra ord in ary c ris is ,
in ve stm en ts a re n ot a ffe cte d . H ow eve r, if t h e c ris is h a s a lt ere d in ve sto rs ’
e xp ecta tio ns a bout f u tu re p ric e s, p ro
m ay b e a ffe cte d .
E xp ecta tio ns o f s im ila r t a xe s in t h e f u tu re a re t ie d t o a gen ts ’ e xp ecta tio ns a bout
fu tu re p ric e s: if in ve sto rs b elie ve t h a t n o e xtra ord in ary t a xe s a re in tro d uce d w hen
p ric e s a nd p ro
n ot a ll, o f t h e e xc e ss p ro
in ve stm en ts m ay d ecre a se c o m pare d t o t h e s a m e s it u a tio n w itho ut t a xe s b eca use
in ve sto rs m ay u se s c a rc e c a pit a l in o th er s e cto rs .	
70

3.4 . I m pa cts o n c o m petit iv e n ess b etw ee n c o un trie s
It is r e le va nt t o c o nsid er w heth er t h e d if fe re n ce s in t h e im ple m en ta tio n o f t h e t a x
im pacts t h e c o m petit iv e n ess o f t h e N ord ic c o untrie s.
In c o ntra st t o e le ctric it y p ro d uce rs in S w ed en a nd D en m ark , w here t h e t a x w as
im ple m en te d a s a r e ve n ue c a p, e le ctric it y p ro d uce rs in F in la nd a re t a xe d a t 3 % o f
p ro
t o b e e q uiv a le n t t o a r e ve n ue c a p f o r a ve ra ge s p ot p ric es o f 2 8 E U R/M W h in t h e
p erio d D ece m ber 2 22– J u n e 2 23 . A ll e ls e b ein g e q ua l, w hen a ctu a l a ve ra ge s p ot
p ric e s a re lo w er t h a n 2 8 E U R/M W h, t h e t a x b urd en o n c o m panie s ( a nd
g ove rn m en t p ro ce ed s) w ould b e h ig her in F in la nd t h a n in D en m ark a nd S w ed en ,
g iv e n t h a t F in nis h p ro d uce rs e a rn p ro
H ow eve r, a ve ra ge s p ot p ric e s h a ve b een s ig ni
sin ce J a nua ry 2 23 ( s e e F ig ure 1 .1 ). T hus, o n a ve ra ge, F in nis h p ro d uce rs a re lik ely t o
b e t a xe d a t a h ig her r a te t h a n p ro d uce rs in S w ed en a nd D en m ark .
F ig ure 3 .7 illu stra te s t h e d if fe re n ce s b etw een t h e t w o t a x s y ste m s. T he 
sh ow s h ow p ro
is e xp ecte d t o e xc e ed a 1 % r e tu rn o n e q uit y. W e a ls o a ssu m e t h a t m arg in al co sts
a re c o ve re d ( w hic h t h ey m ust b e f o r p ro d uctio n t o b e p ro
( w hic h is a m in o r s im pli	
T he k in ke d lin e illu stra te s p ro
b elo w t h e c a p ( 1 8 E U R/M W h), m arg in al p ro
r e la tio nsh ip w it h t h e s p ot p ric e . F or p ric es a bove t h e c a p le ve l, t h e p ro
is le ss s te ep s in ce a s h a re o f t h e r e ve n ues is t a xe d .
The s tra ig ht lin e illu stra te s p ro
re la tio nsh ip b etw een p ric e a nd p ro
s h a re o f p ro
T he t w o s y ste m s y ie ld t h e s a m e r e su lt w hen t h e a ve ra ge s p ot p ric e is 2 8 0
E U R/M W h. F or a ve ra ge p ric e s b elo w t h is , p ro
p ro
a ve ra ge p ric e h ig her t h a n 2 8 E U R/M W h.	
71

Fig ure 3 .7 . P ro fit s p er u n it a nd p ric e s u n d er d if fe re n t t a x s y ste m s
Sourc e : V is ta A na ly se
It is im port a nt t o n ote t h a t p ro
b oth s y ste m s. T his m ea ns t h a t t h e s h o rt -t e rm in ce n tiv es t o p ro d uce a re
m ain ta in ed f o r b oth s y ste m s. P ro d uce rs c a nnot c h o ose w here t o s u p ply t h eir
p ow er; in ce n tiv e s a re t h ere fo re m ain ta in ed e ve n w ith c ro ss-b ord er p ow er t ra de
sin ce p ro d uce rs g et t h e p ric e in t h eir o w n b id din g z o ne. 
T he p ote n tia l lo ng -t e rm im pacts o f d if fe re n t t a x s y ste m s r e la te t o in ve stm en ts .
B oth t h e r e ve n ue c a p a nd t h e p ro
m ea su re s, a nd it is n ot c le a r t o w ha t e xte n t t h ese m ea su re s m ay in
in ve stm en ts . I n g en era l, h a vin g d if fe re n t t a x s y ste m s in t h e N ord ic c o untrie s m ay
in tro d uce w ed ges b etw een e xp ecte d a ft e r- t a x p ro
c o m petit iv e t h e c o untrie s a re in a tt ra ctin g in ve stm en t c a pit al. H en ce , s im ila r t a x
sy ste m s w ould a vo id c h a ng es in c o m petit iv en ess.	
72

3.5 . C onclu d in g r e m ark s a bout t h e r e ve n ue c a p a nd t h e
p ro fit t a x
W e a sse sse d t h e s h o rt - a nd lo ng -t e rm im pacts o f t h e r e ve n ue c a p o n w ho le sa le
ele ctric it y m ark e ts . T he m ain q uestio n w as w heth er t h e r e ve n ue c a p o n
in fra m arg in a l t e ch no lo g ie s w ill a ffe ct t h e in ce n tiv es o f p ow er m ark e t p art ic ip ants .
T he s h o rt -t e rm im pacts a re r e la te d t o in ce n tiv es t o p ro d uce , w hile t h e lo ng -t e rm
im pacts a re r e la te d t o in ce n tiv e s t o in ve st in n ew c a pacit y.
3 .5 .1 . S ho rt -t e rm im pa cts
O ur m ain 	re ve n ue c a p	 in S w ed en a nd D en m ark in clu d e t h e	
fo llo w in g :	
In p rin cip le , t h e in fra m arg in a l p ro d uce rs ’ in ce n tiv es t o p ro d uce a re n ot
a ffe cte d b y a r e ve n ue c a p: p ro d uce rs w ill pro d uce a s lo ng a s t h eir m arg in al
re ve n ues a re h ig her t h a n t h eir m arg in a l co sts .
T he w ay t h e t a x w as im ple m en te d in S w ed en , w ith t h e d ay-a hea d p ric e a s
th e r e fe re n ce p ric e a nd h o urly p ric e s f o r s e tt le m en ts , d oes n ot in
p ro d uce rs ’ s h o rt -t e rm in ce n tiv e s. T he s h o rt -t e rm in ce n tiv es f o r D anis h
pro d uce rs a re m ore c o m plic a te d , b ut in ce n tiv es a re p re se rv e d h ere a s w ell.
T he a ctu a l p ric e s o b ta in ed b y t h e p ro d uce r f o rm t h e t a x b ase . H en ce , if a
p ro d uce r h a s h ed gin g a gre em en ts o r p ow er p urc h a sin g a gre em en ts ( P PA s)
a nd d oes n ot e a rn a m ark e t p ric e e xc e e d in g 1 8 E U R/M W h, t h e t a x d oes n ot
a pply . T he s h a re o f h ed gin g a gre em en ts in t h e N ord ic m ark e t is r e la tiv ely
h ig h, e sp ecia lly f o r w in d a nd s o la r p ow er p ro d uce rs , w hic h a re h ed ged t o a
la rg e d eg re e; t h ere fo re , a la rg e s h a re o f p ro d uctio n is n ot in
t a x.
A dm in is tra tiv e c o sts a re lik e ly t o b e lo w er w ith t h e m onth ly a ve ra ge p ric e a s
th e t a x b ase .
S pecia l p ro vis io ns f o r h ig h-c o st p ro d uce rs ( b io m ass- a nd o il-
p la nts ) e n su re t h a t t h eir in ce n tiv e s a re p re se rv e d a s w ell, t h us e n su rin g
se cu rit y o f s u p ply .	
7 3

Our m ain 	p ro fit t a x	 in F in la nd a re a s f o llo w s:	
A p ro
m axim iz in g 
of p ro
b efo re a nd o ffe r t h e s a m e s u p ply in t h e s a m e m ark e ts a s b efo re . 
A p ro
re ve n ue c a p.
The p re se n t p ro
t a x in D en m ark a nd S w ed en . W hile t h is d oes n ot in
in ce n tiv e s, it in
in ve stm en t d ecis io ns.	
3 .5 .2 . L ong -t e rm im pa cts
T he p ote n tia l lo ng -t e rm im pacts r e la te t o in ce n tiv es t o in ve st. I n ve stm en t d ecis io ns
d ep en d o n e xp ecta tio ns a bout f u tu re p ric es a nd c a sh 
q uestio n is h ow t h ese c ris is m ea su re s m ay in
– w heth er in ve sto rs b elie ve t h a t p olic y m ake rs w ill im ple m en t a r e ve n ue c a p o r a
p ro
h ig h. I f t h ey b elie ve t h a t a s im ila r t a x w ill be in tro d uce d in t h e f u tu re , t h e e xp ecte d
a ft e r- t a x p ro
m ay b e r e d uce d a s w ell. I n o rd er t o m ain ta in in ce n tiv es t o in ve st, it is im port a nt t o
e m pha siz e t h a t t h e m ea su re s w ere in tro d uce d a s a r e sp onse t o a n e xtra ord in ary
c ris is a nd n ot a s r e g ula r t a xe s.
E le ctric it y p ric e s a re m uch h ig her n ow t h a n t h ey w ere b efo re 2 21. O ne m ay n ote
t h a t in ve stm en ts h a ve b een p la nned a nd c a rrie d o ut a t m uch lo w er p ric es t h a n
th o se o f t o d ay. H ow eve r, u n ce rt a in ty a bout m ark e t c o nd it io ns in g en era l – p ric es
a nd t a xe s – m ay c a use in ve sto rs t o p ostp one m akin g d ecis io ns.
It is a ls o w ort h n otin g t h a t t h e d if fe re n ce s in t h e im ple m en ta tio n o f t h e m ea su re s
m ay le a d t o c h a ng es in c o m petit iv e n ess b etw een c o untrie s. T his c o uld h a ve lo ng -
te rm im pacts , s u ch a s in ve stm en ts b ein g “ m ove d ” f ro m o ne c o untry t o a noth er. T he
neg a tiv e e ffe cts o n in ve stm en t c a n b e m itig ate d b y c o m mun ic atin g t h a t t h ese
c ris is m ea su re s a re u n lik e ly t o b e u se d a ga in .
Hen ce , w e c o nclu d e t h a t if in ve sto rs b elie ve t h a t t h e c u rre n t c ris is m ea su re s a re
in d eed e xc e p tio na l, t a rg ete d a nd t im e-lim ited , a s is s ta te d in t h e C oun cil
R eg ula tio n, t h e lo ng -t e rm in ce n tiv e s t o in ve st s h o uld n ot b e a ffe cte d . I t is c ru cia l
th a t t h e a uth o rit ie s e m pha siz e t h e t e m pora ry , o ne-t im e n a tu re o f t h e
extra ord in a ry m ea su re s.	
74

Öre su n d sv e rk e t. C oa l p ow er p la nt in M alm ö, S w ed en .
P hoto : U nsp la sh
4 . E ffe cts o f d em and r e d uctio n
m ea su re s
The C R r e q uir e d c o untrie s t o in tro d uce m ea su re s t o r e d uce e le ctric ity c o nsu m ptio n;
how eve r, it d id n ot s ta te a ny s p eci
le ft t o t h e in d iv id ua l c o untrie s.
In lin e w it h e co no m ic t h eo ry , m ea su re s t o r e d uce d em and c a n b e c la ssi
fo llo w s:	
T a xe s a nd s u b sid ie s
C om mand -a nd -c o ntro l m ea su re s
In fo rm atio n m ea su re s	
T he m ea su re s im ple m en te d in t h e N ord ic c o untrie s t o c o m ply w ith t h e C R c a n b e
cla ssi
re q uir e m en ts f o r im ple m en tin g e n erg y-s a vin g m ea su re s in p ub lic b uild ings in
D en m ark a nd S w ed en a re c o m mand -a nd -c o ntro l m ea su re s. T he a w are n ess
c a m paig ns, s u ch a s “ E ve ry k W h c o unts ” in S w ed en a nd “ D ow n a D eg re e” in F in la nd ,
as w ell a s t h e r e co m men d atio ns t o r e d uce t e m pera tu re s in p ub lic b uild ings in	
7 5

Den m ark , a re a ll e xa m ple s o f in fo rm atio na l m ea su re s.
T he p ro b le m w it h 	co m mand -a nd -c o ntro l m ea su re s 	is t h a t t h ey a re in ef	
is t h e m ost e f
w it h t h e lo w est w illin g ness t o p ay f o r e le ctric ity t o r e d uce t h eir c o nsu m ptio n 
T he a uth o rit ie s d o n ot h a ve in fo rm atio n a bout c o nsu m ers ’ w illin gness t o p ay.
T he p ro b le m w it h 	in fo rm atio n a nd a w are n ess c a m pa ig ns	 h a s t ra dit io na lly b een	
th a t t h ey a re s h o rt -liv e d : c o nsu m ers r e sp ond t o c a m paig ns b y c h a ng in g t h eir
co nsu m ptio n, b ut t h e e ffe ct is t e m pora ry . H ow eve r, r e g a rd in g t h e c a se a t h a nd , it
m ay b e t h a t t h e t e m pora ry e ffe ct w as s u f
co nsu m ptio n in w in te r 2 22– 20 23 , c o nsu m ers c o ntrib ute d t o lo w er p ric es a nd
a lle via te d t h e s c a rc it y s it u a tio n e xa ctly w hen it w as n eed ed . E ve n if t h e r e sp onse
d im in is h es o r d is a ppea rs o ve r t im e, it h a s b een u se fu l.
Ta xe s a nd s u b sid ie s	 in	
c o nsu m ers w ould e n su re t h a t d em and is r e d uce d e f
re d uctio ns a cco rd in g t o t h e v a lu e o f e le ctric ity f o r d if fe re n t c o nsu m ers . T he
a llo ca tio n w ould b e le ss e f
m ark e t p ric e , a s t h e t a x c re a te s a w ed ge b etw een t h e c o nsu m er a nd p ro d uce r
p ric e s. T here fo re , t h e m ark e t p ric e d oes n ot f u lly r e
g iv e t h e c o rre ct s ig na l t o t h e s u p ply s id e t o in cre a se p ro d uctio n. I f t h e t a x a pplie s
only t o s o m e c o nsu m er g ro up s, it is le ss e f
A ll N ord ic c o untrie s h a ve a n e le ctric it y t a x f o r m ost e n d u se rs . H ow eve r, t h ese t a xe s
w ere r e d uce d in 2 22– 20 23 t o a lle via te t h e s it u a tio n f o r e n d u se rs . H en ce , t h e
a uth o rit ie s a ctu a lly r e m ove d ( o r w ea ke n ed ) o ne p ote n tia l m ea su re t o r e d uce
c o nsu m ptio n.
A n a lt e rn a tiv e t o t h e e le ctric it y t a x is a s u b sid y o n e le ctric ity a lt ern a tiv es. S ub sid ies
fo r in cre a se d e n erg y e f
a noth er p ossib ilit y. I t is d if
( s u ch a s lig ht a nd e le ctric a l a pplia nce s), b ut f o r o th ers ( s u ch a s h ea tin g), e le ctric ity
ca n b e r e p la ce d b y a lt e rn a te e n erg y s o urc e s. S om e o f t h e a lt ern a tiv es h a ve
u n d esir a ble im pacts , e .g ., e m is sio ns. I n f a ct, a ll N ord ic c o untrie s h a ve p olic ies t o
p ha se o ut o th er e n erg y s o urc e s, s u ch a s o il and 
fo ur s u b sid y s c h em es in D en m ark w it h t h e a im o f p ha sin g o ut f o ssil fu els in t h e
hea tin g o f p riv a te b uild in g s ( a s d esc rib ed in S ectio n 2 .1 .3 ).
W hile m any o f t h e in ve stm en ts t h a t c o uld r e d uce e le ctric ity u se h a ve lo ng le ad
tim es ( e .g ., in su la tio n o f b uild in g s, d is tric t h ea tin g), t h e m ost r e a dily a va ila ble
alt e rn a tiv e is t h e in sta lla tio n o f h ea t p um ps. T his is a r e la tiv ely s m all in ve stm en t
th a t c a n b e c a rrie d o ut q uic k ly . 
T he p aym en t f o r r e d uce d c o nsu m ptio n a s im ple m en te d in S w ed en ( s e e S ectio n
2.1 .2 ) is a f o rm o f s u b sid y t o r e fra in f ro m c o nsu m ptio n.	
76

4.1 . E le ctric it y c o nsu m ptio n in w in te r 2 22 –2 23
It is o uts id e t h e s c o p e o f t h is s tu d y t o a na ly se t h e im pact o f t h e d if fe re n t m ea su re s
to r e d uce d em and in t h e N ord ic c o untrie s. R ele va nt d em and d ata w ere m ade
ava ila ble ju st b efo re t h e c o nclu sio n o f t h e p ro je ct. N eve rt h ele ss, w e r e p ort o n t h e
a ctu a l d em and r e d uctio n. T a ble 4 .1 p ro vid es in fo rm atio n a bout t h e d if fe re n ce s in
t h e d ata a nd c a lc u la tio ns.
T a ble 4 .1 . D if fe re n ce s in p ea k h o ur a nd g ro ss c o nsu m ptio n r e d uctio n c a lc u la tio ns
 	Sw ed en	F in la nd	D en m ark	
P ea k d em and :	 	 	 	
R efe re n ce p erio d	A ve ra ge o f p re vio us	A ve ra ge o f 2 15 –
20 21	
D en m ark ’s C lim ate
S ta tu s a nd O utlo ok
20 22 r e p ort *	
A dju stm en ts	T e m pera tu re	T e m pera tu re	T e m pera tu re	
T o ta l c o nsu m ptio n:	 	 	 	
R efe re n ce p erio d	P re vio us y e a r	A ve ra ge o f p re vio us	D en m ark ’s C lim ate
S ta tu s a nd O utlo ok
20 22 r e p ort *	
A dju stm en ts	T e m pera tu re a nd
ca le n d ar	
Te m pera tu re f o r
w in te r m onth s	
 	
S ourc e :  V is ta A na ly se
* A p ro je ctio n t h a t c o nsid ers t h e e xp ecte d in cre a se in e le ctri
a nd e n erg y p ric e s a nd t h e e co no m ic o utlo ok, a m ong o th er d riv ers o f e le ctric it y d em and .	
77

4.1 .1 . P ea k d em and
Fig ure 4 .1 s h ow s t h e c o nsu m ptio n r e d uctio n in p ea k h o urs ( a ve ra ge f o r e a ch m onth )
in D en m ark , F in la nd a nd S w ed en f ro m D ece m ber 2 22– M arc h 2 23 . N ote t h a t
slig htly d if fe re n t r e fe re n ce p erio d s w ere u se d in t h e d if fe re n t c o untrie s ( s e e T a ble
4.1 f o r d eta ils ). 
P ea k-h o ur c o nsu m ptio n w as r e d uce d w ell beyo nd t h e t a rg et o f 5 % in a ll co untrie s:
8 .3 % in F in la nd , 9 .1 % in S w ed en a nd 1 .2 % in D en m ark .	
D ece m berJ a nua ryF eb ru a ryM arc h	
0 %2%4 %6%8 %10 %12 %14 %	S w ed en	Fin la n d	D enm ark	T a rg et	
F ig ure 4 .1 . C onsu m ptio n r e d uctio n d urin g p ea k h o urs ( re la tiv e t o t h e r e fe re n ce
p erio d ), 2 22–2 23
S ourc e : V is ta A na ly se
N ote : T he c o untrie s u se d if fe re n t r e fe re n ce p erio ds, s e e T a ble 4 .1 .	
7 8

4.1 .2 . T o ta l c o nsu m ptio n
Fig ure 4 .2 s h ow s t h e t o ta l c o nsu m ptio n r e d uctio n in D en m ark , F in la nd a nd S w ed en
fro m N ove m ber 2 22– M arc h 2 23 . I n t o ta l, c o nsu m ptio n w as r e d uce d b y a lm ost
9 % in D en m ark a nd F in la nd a nd b y a lm ost 7 % in S w ed en .	
Nove m berD ece m berJ a nua ryF eb ru a ryM arc h	
0 %2%4 %6%8 %10 %12 %14 %	S w ed en	Fin la n d	D enm ark	T a rg et	
F ig ure 4 .2 . T o ta l c o nsu m ptio n r e d uctio n ( re la tiv e t o t h e r e fe re n ce p erio d ), 2 22–
2 23
S ourc e : V is ta A na ly se
N ote : T he c o untrie s u se d if fe re n t r e fe re n ce p erio ds. S ee T a ble 4 .1 f o r d eta ils .	
79

Ele ctric it y c o nsu m ptio n w as r e d uce d c o nsid era bly in w inte r 2 22– 20 23 . A t h o ro ug h
a na ly sis o f t h e d if fe re n t m ea su re s’ im pacts o n c o nsu m ptio n is o uts id e t h e s c o p e o f
th is p ro je ct; t h us, w e c a nnot d ed uce h ow m uch o f t h is r e d uctio n w as d ue t o
e m erg en cy m ea su re s a nd h ow m uch w as d ue t o in cre a se d p ric es o r r e la tiv ely m ild
wea th er. E le ctric it y p ric e s w ere m uch h ig her t h is w inte r t h a n h is to ric ally ( a s s h ow n
in F ig ure 1 .1 ). E le ctric it y p ric e s w ere s lig htly b elo w 2 5 E U R/M W h o n a ve ra ge in
D en m ark , F in la nd a nd S outh ern S w ed en in D ece m ber 2 22 , a nd a ro un d 1 0
EU R/M W h in J a nua ry 2 23 . M ore o ve r, t h e w inte r o f 2 22– 20 23 w as r e la tiv ely m ild ,
co ntrib utin g t o lo w er d em and in F in la nd a nd S w ed en .
N eve rt h ele ss, w e c a nnot r u le o ut t h e im pact o f t h e in fo rm atio n c a m paig ns:
c o nsu m ers h a ve b eco m e m ore a w are o f b oth p ric es a nd o p port u n it ie s t o a dju st
th eir c o nsu m ptio n. T here a re t w o in te re stin g p oin ts t o n ote :	
A la rg e r e d uctio n in d em and o cc u rre d in J a nua ry , w hen p ric es w ere
s ig ni
re d uctio n d ue t o e it h er m ore in fo rm atio n b eco m ing a va ila ble a nd in cre a se d
a w are n ess o f t h e p ric e s o r t o m ore p ossib ilit ies t o r e d uce d em and o ve r t im e.
In a ddit io n, t o ta l e le ctric it y c o nsu m ptio n w as r e d uce d t h e m ost in D en m ark ,
w here e le ctric it y d em and is in d ep en d en t o f t e m pera tu re .
T he r e d uctio n o f d em and in p ea k h o urs in S w ed en w as c o nsid era bly la rg er
th a n t h e 7 5 M W ( c o rre sp ond in g t o le ss t h a n .4 % o f p ea k d em and ) p ro cu re d
in t h e 
co nsu m ptio n in t h e r e st o f t h e e co no m y w as s ig ni	
80

4.2 . E le ctric it y c o nsu m ptio n in S w ed en
4.2 .1 . P ea k c o nsu m ptio n r e d uctio n in S w ed en
S ve n sk a k ra ft n ä t p ub lis h ed m onth ly r e p ort s o n c o nsu m ptio n r e d uctio n d urin g p ea k
ho urs in w in te r 2 22– 20 23 .	[64	]	
E le ctric it y c o nsu m ptio n d urin g p ea k h o urs w as r e d uce d b y 9 .1 % o n a ve ra ge d urin g
th e p erio d o f D ece m ber 2 22– M arc h 2 23 in S w ed en . F ig ure 4 .3 s h ow s t h a t t h e
re d uctio n w as r o ug hly t h e s a m e in a ll m onth s. T he c o nsu m ptio n r e d uctio n w as
ca lc u la te d r e la tiv e t o t h e c o rre sp ond in g p erio d d urin g t h e p re vio us 
a dju ste d f o r t e m pera tu re a nd k n ow n c h a ng es in in dustria l lo ad ( s e e t h e r e p ort s
fro m S ve n sk a k ra ft n ä t f o r d eta ils ).	
D ece m ber 2 22J a nua ry 2 23F eb ru a ry 2 23M arc h 2 23	
M W	
0	5,0 0010 ,0 0015 ,0 0020 ,0 0025 ,0 00	Fo re ca st	A ctu al	
F ig ure 4 .3 . P ea k h o ur c o nsu m ptio n ( t e m pera tu re -a dju ste d ) in S w ed en
S ourc e :  V is ta A na ly se , b ase d o n S ve n sk a k ra ft n ä t’s r e p ort s o n e le ctric ity
co nsu m ptio n d urin g p ea k h o urs f o r 	, 	, 	
a nd 	.	
D ece m ber 2 22	J a nua ry 2 23	F eb ru a ry 2 23	
M arc h 2 23	
64	.S ee r e p ort s f o r 	, 	, 	 a nd 	.	D ece m ber 2 22	J a nua ry 2 23	F eb ru a ry 2 23	M arc h 2 23	
8 1

4.2 .2 . T o ta l c o nsu m ptio n r e d uctio n in S w ed en
To ta l e le ctric it y c o nsu m ptio n a ls o d ecre a se d in S w ed en d urin g t h e a utu m n a nd
ea rly w in te r. F ig ure 4 .4 s h ow s t o ta l c o nsu m ptio n f o r N ove m ber– M arc h in 2 21–
2 22 a nd 2 22– 20 23 . T he 
d if fe re n ce s.	
N ove m berD ece m berJ a nua ryF eb ru a ryM arc h	
G W h	
0	2,0 004,0 006,0 008,0 0010 ,0 0012 ,0 0014 ,0 0016 ,0 00	Pre vio us y e ar	T his y e ar	
F ig ure 4 .4 . T o ta l c o nsu m ptio n in S w ed en
S ourc e :  V is ta A na ly se , b ase d o n d ata r e p ort s f ro m S ve n sk a k ra ft n ä t.	
8 2

4.3 . E le ctric it y c o nsu m ptio n in F in la nd
4.3 .1 . P ea k c o nsu m ptio n r e d uctio n in F in la nd
Fig ure 4 .5 s h ow s a r e d uctio n in p ea k h o ur c o nsu m ptio n in t h e p erio d f ro m
D ece m ber 2 22– F eb ru a ry 2 23 in F in la nd . C onsu m ptio n r e d uctio n w as t h e h ig hest
in D ece m ber ( 8 .8 % ). O n a ve ra ge, p ea k c o nsu m ptio n w as r e d uce d b y 8 .3 % d urin g
th e w in te r m onth s. T his w as m ore t h a n t h e 5 % r e q uir ed b y t h e C R.
The f o re ca st w as b ase d o n t e m pera tu re -a dju ste d c o nsu m ptio n d ata f ro m t h e p ast
fe w y e a rs ( 2 15 –20 21). T he f o re ca st e xc lu des t h e e ffe cts o f r e d uctio n m ea su re s.	
D ece m ber 2 22J a nua ry 2 23F eb ru a ry 2 23	
M W	
0	2,0 004,0 006,0 008,0 0010 ,0 0012 ,0 0010 ,0 00	Fo re ca st	A ctu al	
F ig ure 4 .5 . P ea k h o ur c o nsu m ptio n r e d uctio n in F in la nd
S ourc e :  V is ta A na ly se , b ase d o n d ata f ro m F in g rid	
8 3

4.3 .2 . T o ta l c o nsu m ptio n r e d uctio n in F in la nd
In F in la nd , c o nsu m ptio n r e d uctio n w as m ea su re d r e la tiv e t o c o nsu m ptio n in t h e
sa m e m onth in t h e p re vio us 
F eb ru a ry ), t h e 
To ta l c o nsu m ptio n w as r e d uce d in a ll m onth s ( s e e F ig ure 4 .6 ). T he r e d uctio n r a ng ed
fro m 3 .1 % in D ece m ber t o 1 3 .6 % in F eb ru a ry . I n t o ta l, t h e r e d uctio n w as 8 .6 % .	
Nove m berD ece m ber*J a nua ry *F eb ru a ry *M arc h	
G W h	
0	2,0 004,0 006,0 008,0 0010 ,0 00	R efe re nce	A ctu al	
F ig ure 4 .6 . 	T o ta l c o nsu m ptio n in F in la nd	
S ourc e :  V is ta A na ly se b ase d o n F in g rid ’s r e p ort s
* T e m pera tu re a dju ste d	
84

4.4 . E le ctric it y c o nsu m ptio n in D en m ark
4 .4 .1 . P ea k c o nsu m ptio n r e d uctio n in D en m ark
F ig ure 4 .7 s h ow s p ea k d em and f o r D ece m ber 2 22– M arc h 2 23 in D en m ark . P ea k
dem and w as r e d uce d b y m ore t h a n 1 % in t h e w inte r m onth s a nd b y m ore t h a n 5 %
in M arc h 2 23 , r e la tiv e t o t h e f o re ca st.	
D ece m ber 2 22J a nua ry 2 23F eb ru a ry 2 23M arc h 2 23	
M W	
0	1,0 002,0 003,0 004,0 005,0 006,0 00	Fo re ca st	A ctu al	
F ig ure 4 .7 . P ea k d em and in D en m ark
S ourc e :  V is ta A na ly se , b ase d d ata f ro m E nerg is ty re ls en	
85

4.4 .2 . T o ta l c o nsu m ptio n r e d uctio n in D en m ark
F ig ure 4 .8 s h ow s t o ta l c o nsu m ptio n in D en m ark f o r N ove m ber 2 22– M arc h 2 23 ,
to g eth er w it h n o rm al c o nsu m ptio n f o r t h e s a m e m onth s ( b ase d o n C lim ate S ta tu s
a nd O utlo ok 2 22). T his p ro je ctio n t a ke s in to a cco unt t h e e xp ecte d in cre a se in
e le ctri
o utlo ok, a m ong o th er d riv e rs f o r e le ctric ity d em and .
C onsu m ptio n in D en m ark w as r e d uce d in a ll m onth s, t h e m ost in J a nua ry a nd t h e
le a st in M arc h . I n t o ta l, c o nsu m ptio n w as r e d uce d b y 8 .7 % o ve r t h is p erio d.	
Nove m berD ece m berJ a nua ryF eb ru a ryM arc h	
G W h	
0	1,0 002,0 003,0 004,0 00	N orm al c o nsu m ptio n*	A ctu al c o nsu m ptio n	
F ig ure 4 .8 . T o ta l c o nsu m ptio n in D en m ark
S ourc e :  V is ta A na ly se , b ase d o n d ata f ro m t h e D anis h E nerg y A gen cy.
*  B ase d o n t h e r e p ort C lim ate S ta tu s a nd O utlo ok 2 22 . T his is a p ro je ctio n t h a t
ta ke s in to a cco unt t h e e xp ecte d in cre a se in e le ctri
f u el a nd e n erg y p ric e s, a nd t h e e co no m ic o utlo ok a m ong o th er d riv ers f o r e le ctric ity
dem and	.	
86

Ave d øre P ow er S ta tio n. C og en era tio n p la nt in C op en ha gen , D en m ark
P hoto : O rs te d .c o m
5 . E ffe cts o f t h e f o ssil f u el s o lid arit y
c o ntrib utio n
The f o ssil f u el s o lid arit y c o ntrib utio n is , in e sse n ce , a n e xtra ord in ary t a x o n t h e
p ro
A c o m pany is d e
eco no m ic a ctiv it ie s r e la te d t o t h e e xtra ctio n, m ining, r e
m anufa ctu re o f c o ke o ve n p ro d ucts , a cco rd in g t o t h e C R. I n o th er w ord s, t h is t a x
does n ot d ir e ctly in
A s e xp la in ed a bove , a p ro
p ro d uce , b ut it m ay in
e xp ecta tio ns a bout f u tu re n et-o f-t a x r e ve n ues. R ep re se n ta tiv es o f t h e f o ssil fu el
se cto r h a ve p oin te d o ut e xa ctly t h is .
D riv k ra ft S ve rig e a rg ued a ls o t h a t t h e s o lid arit y c o ntrib utio n m ay r e d uce
in ve stm en ts in	 g re en t e ch no lo g ie s. T his w ould b e t h e c a se if o nly f o ssil fu el	
co m panie s c o uld m ake g re en in ve stm en ts . H ow eve r, o th er c o m panie s a nd
a uth o rit ie s c a n a ls o in ve st in g re en t e ch no lo gie s. A s lo ng a s g re en in ve stm en ts a re	
8 7

pro
s u ch p ro je cts , r e g a rd le ss o f t h e p ro
re d is trib ute s in co m e f ro m t h e f o ssil f u el se cto r t o t h e a uth o rit ie s, a nd t h e
a uth o rit ie s m ay c h o ose t o in ve st t h a t in co m e in t h e g re en s e cto r. T he p ro
o f g re en in ve stm en ts is t h us u n a lt e re d b y t h e t a x o n f o ssil fu el co m panie s.
T a xin g t h e f o ssil f u el s e cto r in c a se s w here f o ssil fu el p ro
m ay r e d uce in ve stm en ts in f o ssil f u els c o m pare d t o a n o -t a x s c e n a rio , b ut it w ill not
re d uce in ve stm en ts in g re en e n erg y. M ore o ve r, a s s ta te d p re vio usly , if c o m panie s
are c o nvin ce d t h a t t h e t a x is a t e m pora ry a nd e xtra ord in ary m ea su re , in ce n tiv es
a re n ot a ffe cte d .	
88

Oil r ig in E sb je rg , D en m ark
P hoto : iS to ck
6 . C onclu sio ns
The N ord ic e le ctric it y m ark e t h a s r e sp ond ed r e la tiv ely w ell to t h e c u rre n t c ris is. T he
in cre a se d p ric e s, t o g eth er w it h in fo rm atio n a nd a w are n ess c a m paig ns a nd o th er
m ea su re s, r e su lt e d in s ig ni
d if
o f p ric e s.
A r e ve n ue c a p o n in fra m arg in a l t e ch no lo gie s, a s im ple m en te d in D en m ark a nd
S w ed en , d oes n ot d is to rt t h e s h o rt -t e rm in ce n tiv es t o p ro d uce t o a s ig ni
d eg re e. H ow eve r, a dm in is tra tiv e c o sts m ay b e h ig h. C onsid erin g t h a t p ow er p ric es
h a ve b een m uch lo w er in 2 23 t h a n t h ey w ere in t h e s e co nd h a lf o f 2 22 , t h e a ctu a l
ta x r e ve n ue f ro m t h e m ea su re s is r e la tiv ely lo w. A p ro
F in la nd , is t h eo re tic a lly b ett e r t h a n a r e ve n ue c a p. I n a ddit io n, t h e a dm inistra tiv e
co sts o f a p ro
T he m ain p ote n tia l im pacts o f t h e e m erg en cy m ea su re s r e la te t o in ce n tiv es t o
in ve st in n ew p ro d uctio n c a pacit y. H en ce , it is c ru cia l th a t t h e a uth o rit ie s
em pha siz e t h a t t h e e m erg en cy m ea su re s a re e xc e p tio na l, t a rg ete d a nd t im e-
lim it e d .	
89

6.1 . M ea su re s t o r e d uce e le ctric it y d em and
The c o re p ro p ert y o f a w ell- f u n ctio nin g m ark e t is t h a t it a llo ca te s r e so urc e s
ef
co st, ( 2 ) e le ctric it y is c o nsu m ed b y t h o se w ho v a lu e it t h e m ost, a nd ( 3 ) t h e r ig ht
a m ount o f e le ctric it y is p ro d uce d a nd c o nsu m ed . E f
perio d s o f s c a rc it y, t h e d em and w it h t h e lo w est v a lu e is r e d uce d 
m ost e f
th e a llo ca tio n is f a ir o r p erc e iv e d a s f a ir.
It lie s a t t h e h ea rt o f t h e C R t h a t m ea su re s o th er t h a n t h e p ric e m ech a nis m a nd
th e e le ctric it y m ark e t it s e lf a re t o b e u se d t o m ana ge s c a rc it y.
A g en era l t a x	 o n a ll e le ctric it y c o nsu m ptio n w ould e n su re t h a t d em and is r e d uce d	
ef
d if fe re n t c o nsu m ers . H ow eve r, s u ch a llo ca tio n is le ss e f
le ft t o t h e p ric e m ech a nis m , a s t h e t a x c re a te s a w ed ge b etw een t h e c o nsu m er
p ric e a nd t h e p ro d uce r p ric e . T here fo re , t h e m ark e t p ric e d oes n ot f u lly r e
s c a rc it y in t h e m ark e t a nd d oes n ot g iv e t h e c o rre ct s ig na l to t h e s u p ply s id e t o
in cre a se p ro d uctio n. I n ste a d o f t h e p ric e b ein g a t a le ve l th a t s ig na ls t h e v a lu e o f
in cre a se d p ro d uctio n t o p ro d uce rs , t h e t a x le ads t o a r e d uce d m ark e t p ric e. T he
va lu e o f e le ctric it y t o c o nsu m ers is t h en h ig her t h a n t h e c o st o f p ro d uctio n, w hic h
im plie s a d ea dw eig ht lo ss. I f t h e t a x a pp lie d o nly t o s o m e c o nsu m er g ro up s, it
w ould a llo ca te d em and r e d uctio ns e ve n le ss e f
T he N ord ic c o untrie s h a ve a n e le ctric it y t a x f o r m ost e n d u se rs . H ow eve r, t h e t a x
ha s b een r e d uce d in r e sp onse t o h ig h e le ctric ity p ric es. H en ce , t h e a uth o rit ie s h a ve
a ctu a lly r e m ove d ( o r w ea ke n ed ) o ne p ote n tia l m ea su re t o r e d uce c o nsu m ptio n.
A t h o ro ug h a na ly sis o f t h e d if fe re n t m ea su re s’ im pacts o n c o nsu m ptio n is o uts id e
th e s c o p e o f t h is p ro je ct. W e n ote t h a t e le ctric ity c o nsu m ptio n w as r e d uce d
co nsid era bly in t h e w in te r m onth s o f 2 22– 20 23 . H ow eve r, w e c a nnot d ed uce h ow
m uch o f t h is r e d uctio n w as d ue t o t h e e m erg en cy m ea su re s a nd h ow m uch w as d ue
to in cre a se d p ric e s o r r e la tiv e ly m ild w ea th er. N eve rt h ele ss, w e c a nnot r u le o ut t h e
im pact o f t h e in fo rm atio n c a m paig ns: c o nsu m ers h a ve b eco m e m ore a w are o f b oth
p ric e s a nd o p port u n it ie s t o a dju st t h eir c o nsu m ptio n. T he la rg e r e d uctio n in
d em and t h a t o cc u rre d in J a nua ry , w hen p ric es w ere s ig ni
D ece m ber, m ay im ply a t im e la g in d em and r e d uctio n.
W e a ls o n ote t h a t t h e r e d uctio n o f d em and in p ea k h o urs in S w ed en w as
co nsid era bly la rg er t h a n t h e 7 5 M W p ro cu re d in t h e 
H en ce , t h e r e d uctio n in e le ctric it y c o nsu m ptio n in t h e r e st o f t h e e co no m y w as
sig ni	
90

6.2 . R eve n ue c a p a nd p ro fit t a x
W e a sse sse d t h e s h o rt - a nd lo ng -t e rm im pacts o f t h e r e ve n ue c a p o n t h e w ho le sa le
ele ctric it y m ark e ts . T he m ain q uestio n w as w heth er t h e r e ve n ue c a p o n
in fra m arg in a l t e ch no lo g ie s w ould a ffe ct t h e in ce n tiv es o f p ow er m ark e t
p art ic ip ants . T he s h o rt -t e rm im pacts w ere f o un d t o b e r e la te d t o in ce n tiv es t o
p ro d uce , w hile t h e lo ng -t e rm im pacts w ere f o un d t o b e r e la te d t o in ce n tiv es t o
in ve st in n ew c a pacit y.
6 .2 .1 . S ho rt -t e rm im pa cts
O ur m ain 	re ve n ue c a p	 in S w ed en a nd D en m ark in clu d e t h e	
fo llo w in g :	
In p rin cip le , t h e in fra m arg in a l p ro d uce rs ’ in ce n tiv es t o p ro d uce a re n ot
a ffe cte d b y a r e ve n ue c a p; p ro d uce rs w ill pro d uce a s lo ng a s t h eir m arg in al
re ve n ues a re la rg er t h a n t h eir m arg in a l co sts . F urt h erm ore , t a xin g o nly 9 %
of r e ve n ues e xc e ed in g 1 8 E U R/M W h c o ntrib ute s t o m ain ta in ing t h e
in ce n tiv e s t o p ro d uce .
S pecia l p ro vis io ns f o r h ig h-c o st p ro d uce rs ( b io m ass- a nd o il-
p la nts ) e n su re t h a t t h eir in ce n tiv e s a re p re se rv e d , t h us e n su rin g s e cu rit y o f
su p ply .
T he w ay t h e t a x w as im ple m en te d in S w ed en , w ith a d ay-a hea d p ric e a s a
r e fe re n ce p ric e a nd h o urly p ric e s f o r s e tt le m en ts , d id n ot in
p ro d uce rs ’ s h o rt -t e rm in ce n tiv e s. T he im pacts o f u sin g t h e m onth ly a ve ra ge
p ric e , a s in D en m ark , a re n ot s tra ig htfo rw ard , b ut t h e in ce n tiv es w ere
p re se rv e d in D en m ark a s w ell.
H ow eve r, t h e a ctu a l p ric e s o b ta in ed b y t h e p ro d uce r f o rm t h e t a x b ase .
H en ce , if a p ro d uce r h a s h ed gin g a gre em en ts o r p ow er p urc h a sin g
a gre em en ts ( P PA s) a nd d oes n ot e a rn a m ark e t p ric e e xc e ed in g 1 8 0
E U R/M W h, t h e t a x d oes n ot a pply . T he s h a re o f h ed gin g a gre em en ts in t h e
N ord ic m ark e t is r e la tiv e ly h ig h. I n p art ic ula r, w ind a nd s o la r p ow er p ro d uce rs
a re h ed ged t o a la rg e d eg re e. T here fo re , a la rg e s h a re o f p ro d uctio n is n ot
in
U sin g t h e m onth ly a ve ra ge p ric e a s t h e t a x b ase is lik ely t o r e d uce t h e
a dm in is tra tiv e c o sts o f t h e t a x. H ow eve r, it a ls o r e d uce s t a x r e ve n ue, a s
illu stra te d in F ig ure S .3 . R eca ll t h a t t h e t a x in S w ed en a pplie d o nly t o
re ve n ues o b ta in ed b etw een 1 M arc h 2 23 – 30 J u n e 2 23 .	
91

Our m ain 	p ro fit t a x	 in F in la nd a re a s f o llo w s:	
A p ro
m axim iz in g 
of p ro
b efo re a nd o ffe r t h e s a m e s u p ply in t h e s a m e m ark e ts a s b efo re . 
A p ro
re ve n ue c a p.
The p re se n t p ro
t a x in D en m ark a nd S w ed en , a s t h e p ro
e q uiv a le n t t o a r e ve n ue t a x f o r e le ctric it y p ric es o f 2 8 E U R/M W h a nd
a pplie s t o a lo ng er p erio d . W hile t h is d oes n ot in
in ce n tiv e s, it m ay in
d ecis io ns.	
6 .2 .2 . L ong -t e rm im pa cts
T he p ote n tia l lo ng -t e rm im pacts r e la te t o in ce n tiv es t o in ve st. I n ve stm en t d ecis io ns
d ep en d o n e xp ecta tio ns a bout f u tu re p ric es a nd c a sh 
q uestio n is h ow s u ch c ris is m ea su re s in
w heth er in ve sto rs b elie ve t h a t p olic y m ake rs w ill im ple m en t a r e ve n ue c a p o r p ro
t a x ( o r o th er e xtra ord in a ry m ea su re s) w hen eve r p ric es a re e xtra ord in arily h ig h. I f
t h ey b elie ve t h a t a s im ila r t a x w ill b e in tro d uce d in t h e f u tu re , t h e e xp ecte d a ft e r-
t a x p ro
b e r e d uce d a s w ell. I n o rd er t o m ain ta in in ce n tiv es t o in ve st, it is im port a nt t o
e m pha siz e t h a t t h e m ea su re s w ere in tro d uce d a s a r e sp onse t o a n e xtra ord in ary
c ris is a nd n ot a s r e g ula r t a xe s.
E le ctric it y p ric e s a re m uch h ig her n ow t h a n t h ey w ere p rio r t o 2 21, a nd
in ve stm en ts h a ve b een p la nned a nd c a rrie d o ut a t m uch lo w er p ric es t h a n t h o se o f
to d ay. H ow eve r, u n ce rt a in ty a bout m ark e t c o nd it io ns in g en era l – p ric es a nd t a xe s
– m ay c a use s o m e in ve sto rs t o p ostp one m akin g d ecis io ns.
It is a ls o w ort h n otin g t h a t t h e d if fe re n ce s in t h e im ple m en ta tio n o f t h e m ea su re s
m ay le a d t o c h a ng es in c o m petit iv e n ess b etw een c o untrie s, w hic h c o uld h a ve lo ng -
te rm im pacts , s u ch a s in ve stm en ts b ein g “ m ove d ” f ro m o ne c o untry t o a noth er. T he
neg a tiv e e ffe cts o n in ve stm en t c a n b e m itig ate d b y c o m mun ic atin g t h a t t h ese
c ris is m ea su re s a re u n lik e ly t o b e u se d a ga in .
Hen ce , w e c o nclu d e t h a t if in ve sto rs b elie ve t h a t t h e c u rre n t e m erg en cy m ea su re s
a re e xc e p tio na l a nd t im e-lim it e d , lo ng -t e rm in ce n tiv es t o in ve st s h o uld n ot b e
affe cte d . T here fo re , it is c ru cia l t h a t t h e a uth o rit ie s e m pha siz e t h e t e m pora ry , o ne-
tim e n a tu re o f t h ese e xtra ord in a ry m ea su re s.	
92

6.3 . S olid arit y c o ntrib utio n f ro m f o ssil f u el s e cto r
The t h ir d m ea su re is t h e s o lid arit y c o ntrib utio n f ro m t h e f o ssil se cto r – a
m and ato ry c o ntrib utio n o f a t le a st 3 3% o f t h e t a xa ble p ro
a nd /o r 2 23 t h a t a re h ig her t h a n 2 % o f t h e a ve ra ge p ro
c o a l a nd r e
t h re e c o untrie s o f t h is r e p ort : n o s u ch c o m panie s w ere id en ti
o nly a f e w r e le va nt c o m panie s w ere id en ti
T he f o ssil f u el s o lid arit y c o ntrib utio n is , in e sse n ce , a n e xtra ord in ary t a x o n t h e
p ro
in ce n tiv e s t o p ro d uce , b ut it m ay in
in
f u el s e cto r h a ve a rg ued t h a t t h e s o lid arit y c o ntrib utio n m ay r e d uce in ve stm en ts in
g re en t e ch no lo g ie s. H ow eve r, t h e p ro
b eca use o f t h e t a x o n f o ssil f u el c o m panie s. O th er c o m panie s w ill inve st in g re en
te ch no lo g ie s a s lo ng a s t h ese in ve stm en ts a re p ro
in ve stm en ts in t h e e co no m y. M ore o ve r, if c o m panie s a re c o nvin ce d t h a t t h e t a x is a
t e m pora ry a nd e xtra ord in a ry m ea su re in deed , in ce n tiv es t o in ve st w ill not b e
affe cte d .	
93

About t h is p ub lic a tio n
Im pa ct a sse ssm en t o f e m erg en cy m ark e t in te rv e n tio n m ea su re s t o
ta ck le h ig h e n erg y p ric e s – w it h a f o cu s o n t h e N ord ic w ho le sa le m ark e t 
A nd re a s H oel- H olt , O rv ik a R osn es, Å sm un d S un d e V als eth a nd R olf G olo m bek
© N ord ic E nerg y R ese a rc h 2 23
h tt p :/ / d oi. o rg /10 .6 27/ N ER 20 23 -0 4
C ove r illu stra tio n: iS to ck
L a yo ut: M ett e A gger T a ng
P ub lis h ed : 1 6 .0 8.2 23
N ord ic E nerg y R ese a rc h c o m mis sio ned V is ta A na ly se t o c o nd uct a n a na ly sis o f h ow
th e C oun cil o f t h e E U ’s R eg ula tio n o n a n e m erg en cy in te rv e n tio n t o a ddre ss h ig h
en erg y p ric e s in E uro p e h a s b een im ple m en te d in t h e N ord ic c o untrie s a nd it s
im pacts o n t h e N ord ic p ow er m ark e t. T he a ssig nm en t w as c a rrie d o ut f ro m
Ja nua ry t o M ay 2 23 . T he e m erg en cy m ea su re s w ere s till bein g d is cu sse d a nd
im ple m en te d a t t h e o uts e t o f t h e a ssig nm en t.
A bout V is ta A na ly se
V is ta A na ly se is a s o cia l s c ie n ce c o nsu lt a ncy w ho se m ain e m pha sis is e co no m ic
re se a rc h a nd p olic y a na ly sis , a dvic e a nd e va lu atio n. W e c a rr y o ut p ro je cts t o t h e
hig hest p ro fe ssio na l s ta nd ard s, w it h in d ep en d en ce a nd in te g rit y. O ur k e y t h em atic
a re a s in clu d e c lim ate c h a ng e, e n erg y, t ra nsp ort , u rb an p la nnin g a nd w elf are is su es.
O ur e m plo ye es h a ve h ig h a ca dem ic c re d en tia ls a nd b ro a d e xp erie nce in c o nsu lt in g.
W hen n eed ed , w e u tilis e a n e xte n siv e n etw ork o f c o m panie s a nd r e so urc e p ers o ns
b oth n a tio na lly a nd in te rn a tio na lly . T he c o m pany is f u lly e m plo ye e o w ned .
A bout N ord ic E nerg y R ese a rc h
N ord ic E nerg y R ese a rc h is a n in stit u tio n u n d er t h e N ord ic C oun cil of M iniste rs
w hic h m ana ges a nd 
add v a lu e t o n a tio na l w ork in t h e N ord ic c o untrie s. I n a ddit io n, w e p erfo rm c e rt a in
se cre ta ria t a nd a na ly tic a l f u n ctio ns in t h e e n erg y p olic y c o op era tio n u n d er t h e
N ord ic C oun cil o f M in is te rs .	
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