Annual Report 2012 - Fingrid

IMPROVED EARNINGS
Fingrid’s key objectives in terms of finances include
retaining the grid pricing at the European reference
level, attaining the owners’ profit targets, increasingly
stable capital structure, and maintaining the
high credit ratings. The implementation of the company’s
strategy is measured monthly and annually
in terms of the functioning of the electricity market,
system security, and cost efficiency. The objectives
for the strategic corporate indicators set on
these sectors were not fully attained in 2012. The
objectives of the system security indicator were fulfilled
to a degree of 86 per cent, because the number
of disturbances was small and their economic
disadvantage to society was minor. The objectives
of the indicators set for the electricity market
and cost efficiency were not achieved. As transmission
capacity had to be restricted on the interconnectors
between Finland and Sweden, there were
so much area price differences that the electricity
market indicator lagged behind its objective. The
objectives of the cost efficiency indicator were not
met because the market-based costs of reserves
rose significantly from the previous year. Fingrid
raised the grid transmission tariffs at the beginning
of 2012 in order to increase the share of internal
financing in the funding of capital investments
made in the transmission system. The goal
with equity ratio is a level of 30 per cent. Our financial
objectives for 2013 are presented together
with the other responsibility objectives on page
59 of this annual report.
The profit for 2012 was improved primarily by the
increase in the grid tariffs and by the growth in
20 FINGRID OYJ