Revenue Regulation and Compliance
Baltic Cable operates within a complex European electricity market where revenues and costs are tightly controlled by regulation, methodologies and supervisory authorities - to ensure a fair, transparent and efficient system.
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, a process and outcome that is governed by European power exchanges, which Baltic Cable has no authority to influence. In line with set regulations, 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 income exceeds the regulated cost coverage, we allocate the surplus to purposes defined by the EU electricity market regulation and the Use of Congestion Income (UCI) Methodology decided by the Agency for the Cooperation of Energy Regulators (ACER).
In short, surplus of congestion income are to be reserved for making investments in, and strengthening the development of, the European energy system to enable a more secure, competitive and sustainable continent. 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 owned by the Norwegian company Statkraft Asset Holding AS, which is part of the state-owned Statkraft Group. Statkraft is Europe’s largest generator of renewable power, and its mission is to lead the shift to renewable energy.
Because our owner, Statkraft, is active in both electricity production and trading, EU law requires Baltic Cable to operate independently of these activities. This independence is ensured through strict unbundling rules under the EU electricity market directive.
