A new decree to regulate balance settlement and metering to enhance LECs came into force in Finland since 1.1.2021. It provide for definitions of

  • Local Energy Communities, 
  • Active Consumers,
  • the net-calculation of electricity consumption and production in distribution networks and
  • balance settlement with the LECs and active consumers and usage of their metering data.

The calculation of a settlement period has the following preconditions

  • A local energy community that meets the requirements of the Decree,
  • a group of active customers or an individual active customer under certain conditions
  • Registration with the DSO and providing of the necessary information
  • Production equipment, power plant or storage less than 1 MVA

Net-calculation of electricity consumption and production in distribution network

Electricity produced / stored by LEC or group is distributed to sites within the reporting period according to the declared shares. The consumption of the electricity use at site and the share of electricity produced / stored are added together. Unused electricity is fed into the grid for distribution (surplus). The surplus is allocated to the location of production, with the upcoming Data Hub (2023), it is possible to allocate it to each connection point. This enables a net-calculation  of the value to be used in balance settlement.

Balance settlement with the LECs and active consumers

This is applicable at the same site of production and consumption – Consumption and production are measured with the same distribution system operator’s metering equipment – it is allowed up to 100 kVA power generation equipment or power plant. During the same balancing period, the electricity consumed and produced at the place of use is added together. The value obtained from netting is used in balance settlement clearance and invoicing.


Veli-Pekka Saajo, Finnish regulator, Energy Market Authority, 2021

Finnish Government Government Decree Amending the Government Decree on the Settlement and Metering of Electricity Supplies 2020