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l of the power system after World War II, instead its government kept control by increasing total capacity of the hydroelectric plant to meet demand, decided to make use of the various thermal capacity and to counter the shortage of electricity through the reduction of consumption. For a long run approach, the government put in place a committee in 1944. This committee published a report which considered different alternatives for the organization of the Finnish electricity system. Out of these alternatives, different groups in the country were in support of four:[10]

That the existing ownership structure should be preserved and voluntarily organized, that private, state owned and municipal transmission lines and power plants merge, that all transmission lines and power plants over 50 KV were to be nationalized and that a new transmission company- Valtakohto Oy be formed which will oversee the operations of all transmission lines of 100 KV and over.[11]

In the 1940's, the plans of the Finnish government for the electricity system were carried out. Hydroelectric plants were constructed by state owned and private companies with the large ones at the Northern provinces. Extension of the National grid with the triple growth of the medium tension lines from 1945 to 1965. At this point, there was increase in operational security and the population and industrial centers were all connected to the Finnish national grid.[12]

2.1 TRADE

The law of 1919 which prohibited electricity exportation in large was abolished in December 1957 by the Finnish parliament. This allowed for the exchange of electricity power with Sweden which resulted in the extension of the grid lines northwards.

NORDEL, the largest company of the Nordic countries (Finland, Norway, Denmark and Sweden) was founded in 1963 for the promotion of the economic and technical cooperation in the power exchange and electricity supply over the four countries.[13]

By May 1977, Finland had two nuclear power plants. One of which is currently owned by Fortum Oyj Energy Company of which the state has 75% stake in it but before the 1998 restructuring, it was controlled by the Imatran Voima Oy which then the 95.6% state owned energy company.

Statens Vattenfallsverket, the Swedish owned electricity company went in to a contract with Imatran Voima Oy in 1958 to build a power transmission line of 220 KV from Finland to Sweden. In 1970, Neste was one of the biggest company's in Finland which had the role of managing the trade between Finland and the Soviet Union. The first solar power plant in Finland started operations in 1986 at the Imatran Voima Oy's energy park in Inkoo. Several generation, petrochemical and natural gas companies were established between 1993 and 1994. In June, 1998 Neste became one of Fortum's subsidiaries and in 1999, the running of Imatran Voima Oy was changed to the name of Fortum Power and Heat Oy. The emergence of Fortum's new company now made Fortum the leading energy firm in the Nordic area producing heating oils, traffic fuels, electricity and services related to it for the society at large inclusive of the industry and households.

There were also minor technical changes that took place in the Teollisuuden Voima Oy (TVO) plant, which had the initial commercial capacity of 660 MW each for both boiling water reactors. But was later increased in 1983 to 710