We regularly assess our operating environment and adapt our operations to long-term trends and hot topics. Electricity market legislation plays a crucial role in guiding our operations.
"Energy transition" refers to the shift from fossil fuels to renewable energy. The energy transition is vital for tackling the climate crisis, and a sustainable, renewable electricity network is a prerequisite for the transition. The energy transition calls for every operator in the energy sector to make major changes to enable Finland to reach its target of becoming carbon neutral by 2035.
We are actively working to foster the energy transition by taking care of the overall interests of our customers and the security of supply for society.
The proper functioning of society depends on reliable electricity distribution. Our smart electricity network enables electricity consumption and renewable energy generation to increase without jeopardising the security of supply.
We invest in boosting the transmission and distribution capacity of the electricity network in order to carry out the energy transition, and we keep the need for capacity in balance by increasing the amount of flexibility in the energy market through a smarter electricity network and opportunities for the inclusion of customers in the energy market.
Security of supply and adequancy of electricity
Security of supply activities safeguard society's capacity to function under extraordinary circumstances. Ensuring the electricity supply is an essential aspect of the security of supply.
In addition to Caruna's own security of supply, other parties in society must prepare themselves for electricity shortages and power cuts. Power cuts will not affect the most critical functions of society, such as hospitals and major power plants.
Read more about Caruna's own security of supply
Organisations should prepare contingency plans
Companies and organisations should prepare their own contingency plans for power cuts and restoring operations after a power cut. In the event of an electricity shortage, consumption must be reduced momentarily by as much as possible, and organisations should have action plans in place for this eventuality.
Customers can influence the adequacy of electricity
Customers can also reduce the risk of an electricity shortage by monitoring their electricity consumption and using electricity sparingly. It is a good idea to use energy outside peak hours.
It is easy to reduce your electricity consumption when you are aware of your electricity consumption habits. You can monitor your electricity consumption in the Caruna+ energy monitoring service.
We ensure the continuity of our operations by actively identifying and managing risks.
Risk management is part of Caruna’s internal control system. We regularly assess the strategic and operative risks facing the Group.
Our risks are divided into the following subcategories:
- Financial risks
- Regulatory and conformance risks
- Customer and market risks
- Personal risks
- Environmental risks
- Risks related to technology and physical assets
- Risks related to data and information security
Risk management strives to ensure that any risks affecting the Group's business operations are identified, managed and monitored. The Group has taken out appropriate insurance policies that provide comprehensive cover for its operations.
Among the strategic risks is regulatory risk, which refers to harmful and negative impacts on the regulatory environment or the low predictability of changes in the regulatory environment. The changing operating environment, availability of financing, and the availability of competent personnel are also essential risks at the strategic level. Reputational risk has also been identified. If it materialises, it will slow down the implementation of our strategy and could be a trigger for other strategic risks.
Challenges in the operating environment
The strategy is reviewed annually and changes are made as necessary. Climate change is one of the key long-term megatrends emerging from our operating environment. We evaluate the risks and opportunities of climate change in accordance with the TCFD (Task-force on Climate-related Financial Disclosures) framework.
The most significant risks to operations are related to information security, abnormal weather conditions, supplier risk and safety. For example, abnormal weather conditions may affect the reliability of the distribution network. The key means of preventing interruptions are to replace overhead lines with underground cables, manage forests near overhead lines, and develop remote network control. Caruna has identified risks related to information security and has developed its operations to mitigate these risks.