The electricity system in Northern Europe is changing rapidly. In 1996 Norway and Sweden together established the first inter Nordic electricity exchange market (Nord Pool). Through collaboration with the existing Finnish electricity exchange, El-Ex, in 1998 Finland was included in the market. At the beginning o f 1999 a specific pricing area has been established for the western part o f Denmark, and Danish utility companies are increasingly engaging in pool trading. The Danish legislation on electricity supply opens up for trade in electricity across the borders for consumers with yearly electricity consumption above 100 GWh. The EU-directive on common rules for the internal market in electricity states that each member state has the right o f access to the electricity and distribution grids, thus opening the concept o f free electricity trade in Europe.