System operator – Electricity system license for a closed distribution system

We assisted an industrial client in the licensing of a closed electricity distribution system. A closed distribution system is a particular case in terms of operation and regulation. It distributes electricity within a geographically confined industrial or commercial site or a shared services site. In addition, it does not serve the needs of households but primarily those of its owner or operator or, alternatively, an integrated group of users. This distinguishes a closed distribution system from a general electricity distribution system. Due to the nature of its operation, a closed distribution system is subject to different administrative requirements than a general distribution system.

Our advice covered both the application stage with the Finnish Energy Authority and the subsequent appeal proceedings with the Administrative Court. The license decision became legally final after the Administrative Court upheld the decision of the Finnish Energy Authority and rejected the appeal lodged by a third party. The outcome required our team’s in-depth knowledge of the electricity market legislation in Finland and in the EU.