Energy market

Electricity and gas flow across most of Europe according to supply and demand. Yet national energy policy decisions still influence the functioning of the market.

The energy market has been traditionally thought of globally as a fuel market, especially as an international oil trade. Fuels, such as natural gas, on which the Union depends for its imports, remain central to the EU energy market. In the Nordic countries and Finland, this dependence is lower than in the rest of the EU.

EU is aiming for internal electricity market, so that electricity could freely move from one member state to the other. The cross-border internal electricity market started in the Nordic countries, which were able to set an example for the rest of the EU for a long time. Electricity and gas already flow according to supply and demand in most of Europe. Yet national energy policy decisions continue to influence the functioning of the market.

In the Electricity Market Act, the production and sale of electricity have been defined as free business operations. The electricity transmission being a monopoly, is still controlled by the national authorities, in Finland by Finnish Energy Authority. Similar rules apply to the gas market.

The importance of the heating market in emission reductions and energy efficiency has started to gain footing in EU as well. District heating is the most common heating form in Finland, with a market share of 47 per cent. District heat is not regulated by a separate law in Finland, but it is subject to legislation on competition, consumer protection, construction and energy efficiency.