Market conformity as a starting point
The energy market is regarded globally, above all, as international oil trade. The EU energy market is also characterised by fuels, especially natural gas, and the EU is dependent on its imports. In addition to natural gas, the EU aims for an internal electricity market so that electricity can move freely from one member state to another. For the time being, this development has progressed to regional markets, in which Finland is part of the most progressive one in the EU, the Nordic electricity market area.
By virtue of the Electricity Market Act, the production and sale of electricity have been defined as free business operations. Market conformity and the promotion of competition were, therefore, the starting point when the European countries in the 1990s started to liberalise their electricity markets that were previously closed. On the other hand, monopolistic electricity transmission is still regulated and supervised by the national authority in each EU country, which in Finland is the Finnish Energy Authority.
Part of the energy market consists of the heating market, and the EU has started to better understand its significance in terms of emissions reduction and energy efficiency. The most common heating method in Finland is district heating, which has a 47 per cent market share. Having market dominance, district heating is not regulated by law in Finland.