Risk management

We ensure the continuity of our operations by identifying and managing risks.

Exceptional weather conditions

The most significant operational risks relate to exceptional weather conditions, such as storms, heavy snowfall, and exceptionally severe frosts, which can affect the reliability of electricity supply in the transmission and distribution network. The main measures we can use to prevent distribution disturbances are clearing corridors for power-lines and building the networks underground, where they remain protected from trees fallen down because of strong winds or heavy snowfall.

In addition, we develop the structure of our networks in such a way that a faulty part can be secluded during an outage, which again improves our ability to minimise the number of customers affected by it. In a disturbance, it is essential to be correctly prepared, based on contingency plans.

For more information about the reliability of supply and contingency, see Reliable electricity distribution.

Unfavourable changes in the regulatory environment

In the long run, operational risks often emerge as a result of changes in regulations, but also, in the short term, of various interpretations of regulation decisions and rules. However, the Finnish regulatory environment can be considered stable. The current regulation period commenced at the beginning of 2016, and it provides an 8-year prognosis instead of a 4-year one.

For more information about the regulatory environment, see Reliable operator.

Supplier risk

Due to various reasons, such as liquidation, the suppliers we use may be unable to deliver the commissioned network projects and services. Our procurement model will ensure Caruna a favourable and sound position for competition in each of its network areas. A systematic control model for contractors and services will provide fast signals from the market of any contractor-specific problems, consequently providing the opportunity to step in and perform the necessary corrective actions in time.

For more information about our supplier management, see Sustainable sourcing.