We ensure that society can function by providing reliable electricity distribution

Our basic function is to ensure uninterrupted and weatherproof electricity distribution to our 692,000 customers. A reliable electricity network is an essential aspect of the reliability of supply in society. The more digitalised a society is, the more important reliable electricity distribution becomes. 

We are placing electric cables underground to protect them from extreme weather. This is also freeing up land for agriculture and forestry purposes, as well as for use as carbon sinks. We facilitate the digitalisation of society through the joint construction of electricity and telecom networks, as well as municipal infrastructure.

Our growing customer base and developing electricity network are key prerequisites for our ability to create value for our customers and society. This is supported by Caruna's strengths: high-quality supply chain management, skilled personnel and close cooperation with partners.

In the future, Caruna may, for example, function as a platform for developing new kinds of services and smart energy solutions to help the decisions of customers.

Caruna value creation model 2019

Electricity distribution companies hold natural monopolies within their network areas

From society's point-of-view, it is not reasonable or cost-effective for several companies to construct parallel electricity networks. This is why our electricity network business is regulated. Regulation is required to ensure that electricity transmission prices remain reasonable and the electricity network business remains efficient.

The Electricity Market Act and various official decrees and regulations set out the obligations of electricity transmission companies. The Energy Authority's regulation model also sets out the methods for ensuring reasonable pricing. The Energy Authority's regulation model also sets out the methods for ensuring reasonable pricing.

The methods for calculating permitted revenues are specified in advance of four-year regulation periods. The regulation model defines a reasonable rate of return for distribution network operations overall, but it does not include decisions on individual tariffs.