2015 financial highlights

Company operations

Caruna Networks Oy is Caruna Group’s parent company. The parent company of Caruna Networks Oy is Suomi Power BV with domicile in The Netherlands. In addition to Caruna Networks Oy, Caruna Group includes Caruna Networks Sähkönsiirto Oy, Caruna Networks Espoo Oy, Caruna Oy and Caruna Espoo Oy. Caruna Networks Oy owns Caruna Networks Sähkönsiirto Oy and Caruna Networks Espoo Oy, which in turn own Caruna Oy and Caruna Espoo Oy.

Of all the companies in the Group, Caruna Oy and Caruna Espoo Oy practise regional and distribution network operations in the electrical power systems they own and are two of the regional and distribution network operators referred to in the Electricity Market Act, within their areas of responsibility. Caruna Networks Oy, Caruna Networks Espoo Oy and Caruna Networks Sähkönsiirto Oy provide supportive services for the entire Caruna Group.

In August Caruna Oy acquired Lapin Sähköverkko Oy’s entire capital stock, and the 110 kV and 220 kV networks related to the business, of Kemijoki Oy. Lapin Sähköverkko Oy was merged with Caruna Oy at December 30, 2015.

Relevant events during the financial period

The year 2015 was the first complete operating year for Caruna Group. During the year we continued the completion of our separation and development projects and adapting the operations to the needs of the electricity distribution company operating locally in Finland.

During this past financial period, the weather was exceptionally warm, which is reflected in the electricity distribution volumes in comparison to the previous year. The storm Aapeli, which occurred during new year’s and Suoma, which occurred in April, formed the strongest storms that also caused electricity distribution outages in 2015. In order to minimize the damage caused by storms and heavy snowfall in the most optimal fashion, we are improving the reliability of electricity distribution in many ways, for example, with cabling. By intensifying the management of adjacent forest areas along power lines, we aim to minimize the amount of outages caused by storms and heavy snowfall. By increasing network automatization, we are able to limit faults and their effects as well as switch the power back on quickly to those areas of the network that remain undamaged.

We continued our reliability improvement projects, which were launched the year before, on an even larger scale than previously. During this past financial period the main focus shifted from urban areas to sparsely populated areas in southwestern Finland, Satakunta, southern Finland, Ostrobothnia and Koillismaa.

During the financial period, the company conducted development projects such as establishing and building its own IT-infrastructure, as well as a structure for basic services. In September we moved into our own premises in the district of Perkkaa in Espoo. Simultaneously the company left several real estate services, office services and IT-environments that were previously linked to Fortum. The renewal of our Network Information System (NIS), which improves the reliability and accuracy of our network information, formed another significant reform during the financial period.

In the beginning of the year we initiated employee cooperation negotiations that aimed to dissemble old structures from our time as part of Fortum and adapt our operations and processes to the needs of an independent company. The need for people made redundant was 48 people, which was slightly less than the anticipated figure of 65 people.

In May we developed our customer service for our electricity distribution clients by insourcing customer services to Caruna. This in-house service replaced a previously outsourced service and created jobs for 19 customer advisors. In addition, we developed our customer services by renewing our online customer service channels as well as our website.

As part of developing our operations and focusing on our core business we outsourced our project management supervision through a transfer of a business to the expert organisation Rejlers. Due to the sale 23 staff members were transferred to Rejlers as from 1 September 2015. An outsourced project management supervision has a better ability to adapt to the company’s increasing investment volumes and the solution will provide more flexibility during seasonal changes to the network business. In addition, we are better able to develop the Finnish markets for project management services tailored to the electricity network business when working together with a partner, and offer new career opportunities for those staff members that were transferred to Rejlers.

In August Caruna Oy acquired 100% of the shares in Lapin Sähköverkko Oy’s and bought the 110 kV and 220 kV networks related to the business, of Kemijoki Oy. Due to the acquisition, approximately 150 km of high voltage network in Kemijärvi, Rovaniemi and Sodankylä areas were transferred to Caruna. Lapin Sähköverkko Oy merged with Caruna Oy in late December 2015. No staff was transferred as part of the acquisition.

We wish to share positive energy with all our stakeholders. We are committed to acting responsibly within all our operations. During the past year we systematically developed a system for good governance. Each staff member committed to the company’s Code of Conduct which creates a foundation for our way of working.

A very important part of our independency process has been to create a unique corporate culture. During 2015 we invested in developing an open and homogenous corporate culture and focused on systematically listening to our staff members and allowing the positive energy to become visible in our daily operations. In 2015 we measured our employee satisfaction with regular surveys and research. In addition, we activated our personnel to develop our corporate culture and normal daily working conditions; we collected feedback and posted them on a project wall and the ideas that were collected were processed and refined in workshops for managers and during a strategy day for our entire personnel.

The regulatory period of four years ended at the end of 2015. The Energy Authority will give the decision on the allowed income for the years 2012-2015 during the autumn 2016. The estimated allowed income at the end of 2015 show overincome for Caruna Oy. Caruna Espoo Oy did not show any cumulative overincome at the end of the regulatory period.

Electricity supply volume

During the financial period the electricity supply volume in the distribution network amounted to a total of 9.1 TWh while the supply volume in the regional network amounted to a total of 2.8 TWh. During 2014 the electricity supply volume in the distribution network amounted to 6.4 TWh while the supply volume in the regional network amounted to 1.9 TWh during the financial period from 1 April 2014 to 31 December 2014.

Financial key figures

The year 2015 was the Caruna Group’s first financial period when all companies were consolidated for the entire financial period. In 2014 Caruna Oy and Caruna Espoo Oy have been consolidated into group during April 1st – December 31st, Suomi Power Networks Sähkönsiirto et Cie SNC during April 1st – June 18th and the other companies for the whole year of 2014. Therefore, the figures for 2015 and 2014 are not fully comparable.

In 2015 net sales amounted to EUR 287,523 (180,438) thousand. The operating profit was EUR 25,608 (operating losses in 2014 EUR -60,362) thousand and the period’s losses were EUR -140,393 (-151,020) thousand. The unprofitable financial performance of the period resulted mainly from financing costs and fair value adjustments.


During the financial period Caruna has raised external floating rate Investment loan for a total of EUR 174,000 (1,458, 000) thousand, which matures together with all other external loans in March 2019. By the end of the year the group’s external loan amounted to a total of EUR 1,632,000 (1,458,000) thousand. The external loan is always paid in full when due. The interest for the loan is paid quarterly. The company has hedged against these fluctuating interest rates with interest rate swap contracts.

During the financial year the group had a total of EUR 150,000 (150,000) thousand in floating rate junior loans from its parent company Suomi Power BV and a total of EUR 1,040,349 (997,485) thousand in fixed rate shareholder loans. Both loans are paid in total on demand but at the latest in March 2021 (junior loans) and March 2022 (shareholder loans). The interest for the junior loans and shareholder loan are paid biannually.

The financial expenses for the financial period were EUR 170,021 (102,241) thousand from which shareholder loan interests amounted  88 747 ( 66 466) and interest loans in the balance sheet as EUR 24,734 (21,720) thousand.


During the financial period the Caruna Group invested a total of EUR 204,527 (111,690) thousand, mainly in improving reliability of the network. The network improvement investments had an estimated total value of MEUR 173 in all our network areas. We are renewing the network and improving its reliability mainly by cabling the network underground.

In August Caruna Oy acquired Lapin Sähköverkko Oy’s shares and all networks operated by the business of Kemijoki Oy. The acquired high voltage network extended Caruna’s electricity distribution network in Lapland where Caruna already had network. Due to the acquisition approximately 150 km of high voltage network in Kemijärvi, Rovaniemi and Sodankylä areas were transferred to Caruna.