Caruna Group 1 January – 30 June 2022: Significant changes in the operating environment – the energy transition requires development of the electricity network at a rapid rate

Press release
Caruna's operating environment deteriorated significantly in the first half of 2022 due to the exceptional tightening measures taken by the regulator in the middle of the regulatory period, as well as the general increase in costs. The alterations to the regulation model will cause the company's permitted returns to decrease by approximately 40 per cent this year in comparison with 2021. The changes will show in the revenues of the years to come. The Group's net sales from January to June amounted to EUR 253.6 (258.9) million, and it invested EUR 58.5 (60.9) million.

The total volume of electricity supplied by the distribution network between January and June remained almost the same as the corresponding period in the previous year: 5.2 (5.3) TWh.  

The reliability of Caruna's supply rate was 99.98 (99.98) per cent. Four major storms hit Finland in the first half of the year, the most destructive of which was storm Armi. In February, storm Armi caused a maximum of 9,700 customers to suffer electricity outages simultaneously in Espoo, West Uusimaa and Southwest Finland. The System Average Interruption Frequency Index SAIFI) was 1.01 (0.69) events, and the average interruption time per customer was 53 (46) minutes. 

Electricity consumption is increasing, and the pace of the energy transition is accelerating 

Electricity consumption is expected to increase by 50 per cent by 2040 as the energy transition plays out in Finland. Production volumes of wind and solar energy will increase significantly in the future. 

The energy transition accelerates the adoption of renewable energy, but the poor adjustability and lower predictability of renewable energy will set new requirements for keeping the electricity system in balance. As electricity production grows, electricity networks must be sized to meet maximum instantaneous demand. 

"Development of the electricity network as the basis for production of renewable energy is in a significant 

role to ensure that the goals set for a carbon-neutral Finland by 2035 will be achieved. Green transition, the security of supply and energy self-sufficiency of Finland, as well as securing electricity supply to our customers in an increasingly electrifying society require systematic development work with a long-term approach", says Caruna's CEO, Jyrki Tammivuori

The company aims to modernise its electricity network continuously to meet the needs of the energy transition, which will require investments in the coming years to develop the electricity network. Caruna's investments from January to June amounted to EUR 58.5 million. New construction sites for electricity network installation were set up in several areas, including Ostrobothnia and Koillismaa.  

"The situation in Ukraine has highlighted even more strongly the importance of continuous development of security of supply. Caruna has been systematically modernising its electricity network, as well as the systems in the background of the network and our preparation for the worst possible situation", says Jyrki Tammivuori. 

In the period from January to June, approximately 2,500 (1,400) new solar power systems (<2 MVA) were connected to Caruna's electricity network. Private customers accounted for approximately 2,250 of these systems, and corporate customers accounted for approximately 250. At the end of the review period, the number of small-scale producers of solar power was approximately 14,500 (10,800). 

At the end of June 2022, Caruna had 720,000 (708,000) customers. A total of 1,200 (1,370) new connection agreements were signed in the period from January to June, six of which were for medium-voltage connections. Customer satisfaction improved substantially during the first half of the year, as the cumulative NPS, which is a measure of customer satisfaction, stood at 29.0 (20.9) at the end of June. 

Key figures, January–June 2022:

Million euros or as indicated H1/2022 H1/2021 2021 
Net sales  253.6 258.9 499.8 
Operating profit  99.5 101.9 192.5 
Operating profit (% of net sales)  39.2 39.4 38.5 
Profit for the reporting period 33.4 24.4 46.6 
Investments 58.5 60.9 140.1 
Cash flow after investments 54.9 47.2 46.5 
Interest-bearing net debt (at the end of the period) 3,270.4 3,228.6 3,318.7 
Caruna Group Half Yearly Report

Read more