Congestion Income
Baltic Cable earns income through congestion rents, which are generated when electricity prices differ between the two regions we connect. This means that Baltic Cable does not charge tariffs or other fees. Instead, the income depends on the market and the price differences in bidding zones, governed by European power exchanges, which Baltic Cable has no authority to influence or impact. The income is used to cover operational and capital costs and secure a reasonable return.
Regulation and compliance
European regulations govern how we use congestion income, in a process supervised by national authorities to ensure compliance. If the congestion rent exceeds the regulated cost coverage, we allocate the surplus to purposes defined by The European Union Agency for the Cooperation of Energy Regulators (ACER) methodology. As a certified Transmission System Operator (TSO), Baltic Cable also follows strict European Union rules and regulations that safeguard the efficiency of Europe’s electricity market.
Owned by Statkraft Asset Holding
Baltic Cable is fully owned by the publicly owned Norwegian company Statkraft Asset Holding AS, which is part of the Statkraft Group and ultimately controlled by the Norwegian state. Statkraft is Europe’s largest generator of renewable power, and its mission is to lead the shift to renewable energy.
As part of a large energy group involved in both the trading and production of electricity, Baltic Cable is required to operate independently of these other activities. The independence and autonomy are ensured through unbundling regulations under the EU electricity market directive, implemented in both German and Swedish legislation.
