Helen Group's Annual Report 2010
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Transcript of Helen Group's Annual Report 2010
The Report on Social Responsibility
Mankala hydro power plant on the River Kymijoki.
2HELEN GROUP 2010 2
33 HELEN GROUP 2010
ANNUAL REPORT 2010The Report on Social Responsibility
Helen Group in brief .................................................. 3Helsingin Energia in brief .......................................... 3Corporate governance and risk management ........... 3
Summary ................................................................... 5
CEO’s Review ............................................................ 6
A REVIEW OF HELEN GROUP’S BUSINESS OPERATIONS IN 2010Helsingin Energia ...................................................... 8Subsidiaries ............................................................. 12Associated companies ............................................. 14
ENVIRONMENTEnvironmental review ............................................. 16Environmental financial statements ....................... 19
SOCIAL ISSUESHuman resources..................................................... 20Research and development ..................................... 22Awards and commendations .................................. 23Press releases .......................................................... 23
Helsingin Energia’s organisation ............................ 24The Board ................................................................ 26
HELEN GROUP’S FINANCIAL STATEMENTSAND REPORT ON OPERATIONS 2010 .................... 29
CORPORATE GOVERNANCE AND RISK MANAGEMENTHelen Group’s corporate governance with res-pect to public company Helsingin Energia is based on the law, ordinance, corporate go-vernance guidelines of the City of Helsinki, and good corporate governance within Hel-singin Energia. The corporate governance of the Group’s subsidiaries is based on the law, articles of association, Helen Group’s good corporate governance, and the key principles of the City’s management and administration.
Helen Group complies with the Finnish Corporate Governance Code 2010, where app-licable, e.g. with respect to risk management principles. Helsingin Energia’s Board decides on Helsingin Energia’s risk management prin-ciples. The Boards of Directors of the subsi-diaries, which are acting according to the rules of procedure they have approved, will app ro ve the risk management policies and prin ciples of internal control of the companies.
HELEN GROUP IN BRIEFHelen Group is a business entity whose struc-ture consists of subsidiaries and associated companies. The Group’s parent company is Helsingin Energia.
The subsidiaries of Helsingin Energia be-longing to the Helen Group are Helen Säh-köverkko Oy, responsible for electricity transmission and distribution in the Helsin-ki region, Mitox Oy, responsible for produ-cing energy metering services for energy and real estate companies, the hydropower com-pany Oy Mankala Ab, the real estate company Kiinteistö Oy Helsingin Sähkötalo, responsible for Helsingin Energia’s Main Building, Sähkö-talo and Suomen Ener gia-Urakointi Oy, a ser-vice company specialised in electronic urban services. Furthermore, Helsingin Energia has associated companies and owns power as-sets in different companies, both directly and through Oy Mankala Ab.
HELSINGIN ENERGIA IN BRIEFAs one of the largest energy companies in Fin-land, Helsingin Energia supplies electric ener-gy to approximately 400,000 customers in Finland and covers more than 90% of the heat demand of the capital city with district heat. Helsingin Energia produces and sells district cooling, which is considerably expanding in Helsinki.
Among the services provided by Hel singin Energia are the design, projecting and main-tenance of energy production and distribution systems. Helsingin Energia is also responsible for the outdoor lighting systems in Helsinki.
Contents
4HELEN GROUP 2010HELEN-KONCERNEN 2010
Operational structure
Group structure
* Helen Sähköverkko Oy
** Mitox Oy
* Helen Sähköverkko
** Mitox Oy
The Helen Group consists of the parent company, Helsingin Energia, and its subsidiaries and associated companies, the most significant of which are presented in the adjoining figure. Helsingin Energia also has minor shares in other companies.
The group guidance and operational processes
5 HELEN GROUP 2010
SummaryThe year 2010 was a year of diversity for Helsingin Energia: in a way, we experienced two severe winters, at the beginning and the end of the year, and this also posed a challenge to the availability of production installations, which proved to be excellent.
Helsinki City Council made a decision with a wide-ranging impact by giving its seal of approval to Helsingin Energia’s development programme towards a carbon-neutral future.
RESULT WAS BETTER THAN EXPECTEDThe Helen Group’s fi nancial result was better than expected despite the sharp fuel price fl uctuations. The profi t trend is based on successful operations in the electricity market.
Due to the cold winter, more district heat was generated in Helsinki than ever before. District heat sales grew by 9% from the year before, and total electricity sales by one per cent. Retail sales of electricity grew by 3%. In district cooling operations, the limit of 100 MW was exceeded, and the number of customers in-creased by more than 30%.
EMISSIONS REMAINED AT A LOW LEVELHelsingin Energia generates electricity, heat and cooling at the power plants situated in Helsinki. In addi-tion, the company acquires electricity through its power assets. The eco-effi cient cogeneration continued to grow. Procurement of hydro and wind power accounted for 6% and that of nuclear power for 18% of ener-gy procurement.
Due to the cold winter, the carbon dioxide emissions of energy procurement increased by 8%, amount-ing to 3.8 million tonnes. The specifi c carbon dioxide emissions remained unchanged at 260 g CO2/kWh despite the increased consumption.
The electricity sold in retail is procured mostly from the Nordic Power Exchange. The specifi c emissions of the electricity sold were 126 g/kWh, and 82% of the electricity sold was carbon dioxide free. The speci fi c emissions of the district heat sold were 113 g/kWh.
BEST CUSTOMER SERVICE IN THE ENERGY SECTORThe Epsi Rating survey based on an EU Commission initiative revealed that Finns consider Helsingin Energia’s customer service to be the best. For the second year running, Helsingin Energia scored the highest points in the services provided to both private and business customers.
Helsingin Energia received prestigious international recognition, the 2010 Green Enterprise IT Award, from the IT industry for its eco-effi cient data centre operations, where servers are cooled with district cool-ing and the heat produced by the servers is conducted to the district heating network to heat up buildings in Helsinki.
Key fi gures, Helen Group 2010 2009
Net turnover, € million 830 824Profi t beforeappropriations, € million 277 263Total assets, € million 1,642 1,605Return on investment % 20 19Equity ratio % 63 63
Key fi gures, Helsingin Energia 2010 2009
Net turnover, € million 716 723Profi t beforeappropriations, € million 245 247Total assets, € million 1,501 1,490Investments, € million 91 71Personnel, Dec. 31. 1,227 1,262
Electricity retail sale 24.7%
Electricity wholesale
22.3%
Electricity sale total 47%
Electricity transmission sale 13.3%
Other returns, total 5.4%
Net turnover, Helen GroupNet turnover 830 € million
District heating sale 34.3%
66HELEN GROUP 2010 6
CEO’s review
The year 2010 was a year of diversity for Helsingin Energia; in a way, we experienced two severe winters, at the beginning and the end of the year, and this also posed a challenge to the availability of production installations. In the same year a decision with a wide-ranging impact on Helsingin Energia’s operations was made: Helsinki City Council gave its seal of approval to our development programme towards a car-bon-neutral future.
Due to the high utilisation rate and ex-cellent reliability of our production, as well as our successful operations in the electri-city market, the fi nancial result of the Helen Group was better than expected des pite the highly fl uctuating fuel prices.
Group turnover totalled EUR 830.2 mil-lion, showing an increase of EUR 5.8 mil-lion on the previous year. Profi t before ap-propriations stood at EUR 277.3 million. The Group’s profi tability and cash fl ow from operating activities remained at the previous year’s good level. Return on in-vestment stood at 20%, while cash fl ow from operating activities amounted to EUR 299.4 million.
Expenses before depreciation according to plan totalled EUR 483.8 million. At EUR 255.7 million, fuel costs increased by EUR 1 million on the previous year. Electrici-ty purchases and electricity procurement from our shares in partly-owned power plants diminished by a total of EUR 8 mil-lion. Other costs were pushed up by opera-tion and maintenance tasks carried out at power plants.
The Helen Group’s investments stood at EUR 120 million. Helsingin Energia in-vested EUR 29 million in district heating, EUR 10 million in the expanding district cooling network, EUR 18 million in power plants, and EUR 8 million in outdoor light-ing systems. Investments to improve He-len Sähköverkko Oy’s security of supply to-talled EUR 26.5 million.
It is already possible to make an es-timate that the development of Helen Group’s operating income in the current year will not be as positive as in 2010. The reasons for this include the foreseeable fu-el price trend and the falling price level in the electricity wholesale market. Despite a continuously strong cash fl ow from operat-ing activities, the Group’s liquidity seems to be diminishing further, which will result in increased debt fi nancing.
DEVELOPMENT PROGRAMME TO BE IMPLEMENTED AS A KEY INVESTMENT PROGRAMMEHelsinki City Council discussed Helsingin Ener gia’s development programme to-wards a carbon neutral future on two occa-sions, and approved the programme in late 2010. Along with signifi cant investments, the development programme will essentially change Helsingin Energia’s fi nancial position.
Helsingin Energia will carry out the re-quired further studies within the develop-ment programme by November this year, at which time the key decisions related to the programme will have to be made. The most signifi cant of these decisions will be whe ther the present Hanasaari energy supply area is deemed to be more valuable in other than energy use. If this decision is arrived at, Helsingin Energia will launch substitutive power production solutions in the Vuosaari area with a very challenging time schedule.
The implementation of the develop-ment programme is also affected by the efforts to improve air quality with actions based on the IE directive, requiring major investments in air pollution control.
The use of renewable energy sources in pulverised coal boilers requires signifi -cant technical changes, depending on the degree of pretreatment of the substitutive bio fuel. To reach the 38% share of renew-able energy, which has been taken on by Finland as its obligation, the pulverised coal
boilers located on the coast should also be included in the changes required by the use of renewable fuels. However, the sup-port systems developed by the government so far cannot be deemed to be suffi cient for activating investments to change the pul-verised coal boilers.
It is also important to note that increas-ing the share of biofuels requires consider-able arrangements and investments in their procurement, transport, intermediate stor-age and reception logistics.
As predicted, the support system for building wind power became statuto-ry, and in its current form it may enable the launch of projects for building onshore wind power. However, an offshore wind farm built in the open sea, with a consider-ably higher degree of utilisation, requires a signifi cantly stronger support system. Prob-lems related to the use of water areas and licensing must also be solved. Helsingin Energia has substantial offshore wind power projects through its associated companies, and some of the electrical energy we sell is already produced by wind power.
The energy tax rises, which entered in-to force at the beginning of this year, will increase uncertainty in view of future in-vestments. Mutually confl icting steering mechanisms have a strong infl uence on Helsingin Energia’s operations: on the one hand, there are the EU’s emissions trading scheme, the government’s targets of ener-gy policy, and the energy and climate policy targets of the City of Helsinki. On the other hand, there are the government tax instru-ments with the heaviest focus on district heat. In terms of the climate, district heat would be the most effective heating solu-tion for urban areas.
NEW ENERGY SOLUTIONSIn 2010, we carried on developing new operating models to support our existing range of products. We are building a strong
Results better than expected
77 HELEN GROUP 20107
network and energy solutions with our new business concepts in co-operation with our partners.
We continued our internationally re-cognised Data Centre concept with our partners in order to fi nd potential new facil-ities. Helsingin Energia can offer ecologic-ally superior solutions for energy-effi cient cooling of Data Centres and for capturing the waste heat produced by them.
The energy future will be fi rmly based on smart grids. We took an important step forward in the construction of smart grids together with Nokia Siemens Networks and ABB. The technology consortium will build a model smart grid area of global sig-nifi cance at Kalasatama in Helsinki. In the pilot project, we will be testing, for exam-ple, connection of distributed micro-gen-eration of electrical energy to the network, as well as demand fl exibility in the electri-city market in order to promote effi cient energy use.
Helsingin Energia is also taking action to support more widespread use of climate-friendly electric vehicles and to develop a network of recharging points for electric vehicles in Helsinki.
District heat produced in cogeneration in the same process with electricity is the most climate-friendly heating solution. In the fringe areas of the district heating net-work, there are excellent opportunities to implement various alternatives in heating combinations for the district heating of en-ergy-effi cient buildings. In the future, we will take the needs of the changing heating market into account in the pricing struc-ture of district heating. At the same time, we will increase biorenewable district heat within the scope of our development pro-gramme in accordance with the selection made by our customers. We are also devel-oping the versatility of our energy-effi cient district cooling products.
EXPERTISE MUST BE ENSUREDWe have for long been aware of the im-pending retirement boom, and we are now facing this problem head on. The situa-tion is presenting clear needs for change at Helsingin Energia. Retaining our wealth of knowledge and transferring it to the next generation must be ensured, and our ex-pertise must also be extended to complete-ly new areas.
When implementing our development programme, we will have to pay partic-ular attention to our expertise on project development and various technologies. In future, Helsingin Energia will be charac-terised more as an organisation with a de-veloping and constructive function instead of its role as an energy production compa-ny. Therefore, the key challenge for our hu-man resources policy will be our attractive-ness as an employer.
THANKS TO ALL MEMBERS OF STAFFI wish to take this opportunity to extend my thanks to the personnel of the entire Group. The plants, machinery and net-works have been functioning faultless-ly under exceptional conditions. We have succeeded in maintaining our operational reliability and performance at an excel-lent level while actively seeking alterna-tive solutions for the future. Our corporate image and customer service have gained high ratings from our clients. Thanks for all this goes to all Helen employees.
15 February 2011
Seppo Ruohonen
8HELEN GROUP 2010
Review of Helen Group’s operations in 2010
Helsingin Energia
COLD WINTER AND SUCCESSFUL OPERATIONS IN THE ELECTRICITY MARKET YIELDED A GOOD RESULTHelenPortfolioManagement is responsi-ble for the commercial availability of Hel-singin Energia’s power plants and power assets. The business unit gained a good re-sult, exceeding the profi t goals set for it. HelenPortfolioManagement’s turnover amounted to EUR 591 million.
The amount of electric energy sold to the Nordic wholesale market was 7,860 GWh, which was slightly more than in the previous year. The supply of district heat energy reached a record level, 7,850 GWh.
Helsingin Energia’s combined heat and power generation increased further as a re-sult of cold weather and the excellent avail-ability of power plants. Cogeneration and the Katri Vala heating and cooling plant utilising waste water heat accounted for almost 90% of the total supply of district heat energy.
The price of electricity was exceptionally high a few times at the start of the year due to a cold front, the low availability of Swe-
dish nuclear power plants and transmission congestions in cross-border connections. At the close of the year, electricity prices rose sharply due to a heavy demand for electri-city and low water reserves. In 2010, the average wholesale price of electricity in Fin-land exceeded EUR 56/MWh, i.e. it was clearly higher than in previous years.
EXCELLENT POWER PLANT AVAILABILITY HelenPower is responsible for power and heat generation at the Salmisaari, Hanasaari and Vuosaari power plants. The business unit operates on the absorption principle. The availability of the power plants was ex-cellent in the fi nancial year. Natural gas was the main fuel of the plants, accounting for more than 50% of the fuels used.
The power plants in Helsinki produced 5,596 GWh of electricity, of which the envi-ronmentally friendly and cost-effi cient com-bined heat and power generation account-ed for 98%. District heat production in the CHP plants amounted to 6,636 GWh, and the share of cogeneration was 85%.
The most extensive planned outages were carried out in the Salmisaari B pow-er plant in the summer. The overhaul of the steam turbine covered repairs of corrosion damages, and the automation system of the turbine was also upgraded. These in-vestments were related to the modernisa-tion and to the high utilisation rate of the Salmisaari B power plant.
This year, HelenPower is gearing it-self up for implementing projects related to Helsingin Energia’s development pro-gramme towards a carbon neutral future, which the Helsinki City Council approved in the year under review.
MORE BUSINESS ELECTRICITY CUSTOMERSHelenElectricity is responsible for the re-tail sale of electric energy to households and business customers. The turnover of the business unit stood at EUR 212 million. The exceptionally high electricity procure-ment costs at the beginning and end of the year had a signifi cant impact on the result of operations. HelenElectricity sold a total
Price trend of coal 2010
US $/ton €/ton
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Wee
k
40
20
0
60
80
100
120
Price trend of electricity (local price in Finland) 2010
€/MWh
0
50
25
75
100
150
125
175
200
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Week
Electricity supply
Natural gas 54%
Renewable energy sources 7%
Coal 21%
Electricity supply(own production, shares and import)
Total 7,863 GWh
Nuclear power 18%
Share of electricity production at the power plants located in Helsinkiwas 73% of which compined power and heat production was 98%.
Natural gas 51%
Coal 40%
Oil 7%Heat pump 2%
District heat supplyTotal 7,850 GWh
Share of combined heat and power production at the power plants located in Helsinki was 85%.
9 HELEN GROUP 2010
of 3,787 GWh of electricity throughout Fin-land. HelenElectricity procures most of the electricity it sells from the Nordic Power Ex-change. The specifi c emissions of the elec-tricity sold were 126 g/kWh, and 82% of the electricity sold was carbon dioxide free.
There was a clear increase in the num-ber of business customers in the course of the year. Household customers were ex-ceptionally busy inviting tenders from elec-tricity suppliers, which was in evidence in the declining number of customers.
HelenElectricity was actively engaged in developing services for the benefi t of customers and the environment. An In-ternet-based solution, jointly developed by HelenElectricity, Mitox Oy, a company specialised in the provision of metering ser-vices, and There Corporation with the aim of enabling ordinary households to moni-tor their energy consumption in real time, reached its pilot stage. This solution will enable household customers to take ad-vantage of hourly tariffs in the electrici-ty market and to use electricity when the price is at its lowest, and to restrict con-
sumption during more expensive hours. Households will also be able to steer their electricity consumption in a more climate-friendly direction, as they will be able to use electricity when the production of wind generators is at its highest. The goal of the co-operation between HelenElec-tricity, Mitox Oy and There Corporation is to enable customers to utilise the hourly metering equipment that network compa-nies already have installed.
HelenElectricity increased its product range with a new product, Hydro Power, which was marketed together with other products particularly in the Espoo area. The environmental impact of the Hydro Pow-er product is not signifi cant enough to be considered a reliable basis for marketing, but in the prevailing competitive situation Hydro Power provides an important alter-native for the customers who appreciate it.
As the fi rst Finnish energy company, HelenElectricity was awarded the inter-national Investors in People (IIP) certifi -cate. The IIP is an international standard and a model for developing leadership and
management, aimed at helping organisa-tions achieve their targets and succeed. The standard is applied in more than 70 countries. The certifi cate is a recognition received for good leadership and manage-ment, and for investing in employees and listening to them. In accordance with the IIP standard, the whole organisation is in-cluded and takes an active part in the plan-ning and development of operations.
At the close of the year, Helsingin Ener-gia had 5,089 environmental penny cus-tomers, of whom 4,703 were wind power customers and 386 museum hydropower customers. The amount in the Environmen-tal Penny account at the end of the year was EUR 1.2 million. In 2009, Helsingin Ener gia allocated EUR 300,000 from the Environmental Penny account to the ex-pansion of the Raahe offshore wind farm implemented in 2010.
RECORD YEAR FOR DISTRICT HEATINGHelenDistrictHeat is responsible for the district heating business. In terms of ener-
Energy sales
The electiricity sale price incl. tax for a typical fl at (with an annual consumption of 2,000 kWh) compared with the average price *) of electricity in Finland.
2006 2007 2008 2009 2010
average price, c/kWh
Specifi c emissions of electricity:Carbon dioxide 126 g/kWh, spent nuclear fuel 0.6 mg/kWh
Reference: Act on Verifi cation and Notifi cation, of Origin of Electricity (1129/2003)
Consumer prices of electricity
4
3
6
7
8
9
10*) Finland Helsingin Energia
Renewables 61%
Fossil 18%
Nuclear power 21%
The origin of electricity sold to households and enterprisesThe electricity sold to retail customers was
divided between various energy sources as follows:
Of the electricity sold to households and enterprises 82% is carbon dioxide free. 94% was acquired from the Nordic
electricity exchange.
District heat sales
6,950
6,585
6,960
6,396
5,400
5,600
5,800
6,000
6,200
6,400
6,600
6,800
7,000
7,2007,072
6,775
7,057
6,140
7,360
7,062
District heat sales
District heatsales adjusted
2006 2007 2008 2009 2010
GWh
District heat sales adjusted by the outside tempature 0
10
20
30
40
50
60
Average price of district heat
Average price of district heat supplied by Helsingin Energia
2006 2007 2008 2009 2010
40.5 42.7
50.154.2
€/MWh
47.3Year
Connection power MW
Number of customers
District heat customers and connection power
1970 1980 1990 2010
627 1,736 2,375 3,244
1,682 4,954 9,022 14,010
78
205
1960
10HELEN GROUP 2010 10
gy sales, the year 2010 was record-break-ing for the business unit. The cold begin-ning and end of the year had a signifi cant impact on the demand for district heating. In fact, there was a 7% increase in the need for heating in the review year compared to a normal year, and a good 10% increase compared to the preceding year. A record fi gure, 7,360 GWh, was reached in district heat sales.
The turnover of HelenDistrictHeat was EUR 285.6 million, and the result of busi-ness operations was good.
At the end of the year, the total connec-ted heat load of our district heat custom-ers was 3,244 MW, showing an increase of 26 MW on the previous year. A total of 250 new customers were connected to the dis-trict heating network. The 14,000th dis-trict heat customer, the future headquar-ters of the construction company Skanska, was connected to the network at the end of December. The district heating system was expanded in different parts of Helsinki. An entirely new area connected to the district heating network was Kuusisaari in Helsinki.
There were no signifi cant disruptions in the district heating network last year. Work site management was developed by further improving work site information and by fo-cusing on work site safety and cleanliness.
The price of district heat was lowered at the beginning of July and October as a re-sult of the fuel price trend. However, the decisions made on energy taxation last year will raise the price of district heat in the fu-ture in accordance with their impacts.
The demand for district heating in Hel-sinki will continue to grow due to the densely-built urban structure and new resi-dential areas. We started to develop a new product called light district heating to pro-mote energy-effi cient construction in the
suburban zones of the city. The light district heating system has been designed for these areas and it is particularly well suited for heating energy-effi cient properties. This so-lution makes it possible to use a lower op-erating temperature and new kinds of net-work solutions and to integrate evolving, smart building-service-technology solutions with the light district heating system.
HelenDistrictHeat was awarded the fi rst prize of the Mayor of Helsinki’s quality award competition and the commendation of the Quality Centre Excellence Finland for consistent, customer-oriented and en-ergy-effi cient operation. In ecological and economic terms, district heating is a sus-tainable way of heating Helsinki, and it will be part of Helsingin Energia’s development path towards CO2 neutral production. The specifi c emissions of the district heat sold were 113 g/kWh.
NEW PROPERTIES IN THE CITY CENTRE JOINED THE DISTRICT COOLING SYSTEMHelenCooling is responsible for the con-tinuously expanding district cooling busi-ness in Helsinki. The real estate investment company Sponda Plc signed a framework agreement on connecting 22 signifi cant properties in the centre of Helsinki and in the district of Ruoholahti in phases to the district cooling system.
At the close of the year, the connec-ted cooling load of HelenCooling was 104 MW, and the limit of 100 MW was excee-ded in July 2010. 28 new customers were connected to the network, and the con-nections numbered 163 at the end of the year. District cooling sales amounted to 84 GWh, showing an increase of 27 GWh on the previous year.
Helsinki has one of Europe’s largest and
fastest growing district cooling systems, the capacity of which is equivalent to the dis-trict heating network of a medium-sized Finnish town. District cooling covers shop-ping centres, offi ces, public administration buildings, Data Centres and residential buildings, and their number continued to increase in the review year.
Extensive district cooling connections will be made available in the new residen-tial areas rising up in Jätkäsaari and Kalasa-tama in Helsinki. Almost all buildings in the area of Helsinki city centre can be connec-ted to district cooling.
District cooling utilises cold sea water and other local energy sources that would otherwise remain unused or be wasted. The district cooling system is energy-effi -cient and operates in synergy with the dis-trict heating system. The surplus heat from buildings cooled with district cooling is pri-marily used for heating tap water. Of the district heat sold in July, 15% was based on the utilisation of surplus heat from build-ings cooled with district cooling.
Expansion of the district cooling system will continue also in the Pasila area, where the Finnish Broadcasting Company (YLE) was connected to the district cooling net-work last year.
Due to the increase in district cooling consumption, an underground cooling cen-tre with a capacity of 11 million litres of water is currently under construction in Pasila. Located underground in the bed-rock, a cold water tank that will be approx. 45 metres deep and approx. 30 metres wide will essentially improve the security of district cooling supply. At the same time, it will open new prospects for optimising overall production. The cooling centre will be completed this year.
PROJECT AND CONSULTING SERVICES FOR ENERGY PRODUCTION YIELDED A GOOD RESULTHelenEngineering provides project and con-sulting services related to energy production. At EUR 5.8 million, the turnover of Helen-Engineering was at the previous year’s lev-el. The result of operations was good. Of the turnover, 20% came from assignments car-ried out for the business units outside of Helsingin Energia.
One of Helsingin Energia’a key projects in the fi nancial year was the modernisation of the Lassila heating plant. The automation and electrifi cation upgrades of the Salmi-
Helsingin Energia
The Vuosaari natural gas-fi red power plants.
Review of Helen Group’s operations in 2010
1111 HELEN GROUP 201011
saari power plant will be completed in the current year. The modernisation project on the steam turbine of the Salmisaari power plant and the renovation of the Myllypuro heating plant were launched at the end of last year. The automation and electrifi cation upgrade project on the Vuosaari A power plant progressed to the procurement stage.
The key external projects covered de-signing process systems for Lahti Energia’s Kymijärvi power plant and the preliminary planning of a heat pump project for the Joensuu city. Modernisation of the turbine of the Ahvenkoski hydropower plant and the related electrical and automation up-grades progressed to the procurement stage. The project is scheduled for completion in 2012. The preparations of a general techni-cal plan for the wind power projects of Inkoo – Raasepori and Siipyy in Kristiinankaupunki were continued, and the reports on the EIAs of the projects were completed.
MAINTENANCE OPERATIONS GAINED A GOOD RESULT, PROFITABILITY STILL ON THE INCREASEHelenService is responsible for providing maintenance services for energy produc-tion and distribution systems. The turnover of this business unit stood at EUR 36.1 mil-lion. Both the profi tability and the result of operations improved.
Overhaul of the steam turbine related to the modernisation of the Salmisaari B power plant and prolongation of the plant’s service life was one of the main maintenance pro-jects implemented within the Helen Group in the year under review: The rest of Helen Group’s maintenance measures in the re-view year were routine maintenance.
Several maintenance and repair assign-ments for industrial and energy-sector cus-tomers were carried out. The key projects were the generator maintenance of the Nais-tenlahti power plant of Tampereen sähkölai-tos Oy and maintenance of the steam turbine of the Board mill M-real Tako in Tampere.
Our contracts on electro-technical main-tenance and planning services with Helsin-ki City Transport were renewed for a 5-year period. Helsinki City Transport is responsible for the metro and tramway trafi c in Helsin-ki. The contract covers the maintenance and connection services and the stand-by ser-vices for emergency duties required by the present tramway and metro power supply systems, as well as the planning and pro-curement services required by new renova-
tion and construction projects. In the cur-rent year, HelenService will also be involved in designing underground substations and in installing and commissioning them.
HelenService was also charged with re-pairing damages of the steam turbine of the Stora Enso Honkalahti Sawmill. The project was completed this year. The re paration of the turbine of the Board mill M-real Kyro was also completed this year.
IMPROVED ECO-EFFICIENCY IN OUTDOOR LIGHTING SYSTEMS IN HELSINKIHelenOutdoorLighting provides compre-hensive public outdoor lighting services in Helsinki. The turnover of the business unit was EUR 19.8 million. The fi nancial year was record-breaking in the renovation and building of lighting systems and in increas-ing the effi ciency of lighting maintenance.
The year under review was characterised by our efforts to increase eco-effi ciency, and we succeeded in slightly reducing the overall light output, in spite of the fact that the number of lighting points in the light-ing network increased by 1,200. A total of 3,500 lighting points were renovated by re-placing high pressure mercury lamp fi xtures with high pressure sodium or metal halide lamp fi xtures. The quality of lighting system maintenance was further improved. We also succeeded in further increasing the fl uency of fault repair activity, and the average fault repair time was six days.
During the review year, we were on the lookout for technical solutions to further en-hance energy-effi ciency and to be able to ef-fi ciently produce white light of high qual-ity, when the high-pressure mercury lamps are removed from the market due to an EU directive. In the course of the year, we car-ried out experimental installations using LED and metal halide light sources. A new lighting centre was also developed, due to which each lighting group can now be con-trolled better than before. New lighting con-trol units were installed and lighting fi xture-specifi c dimming devices were introduced.
At the end of the year, there were ap-prox. 83,600 lighting points in Helsinki. We installed 100,000 eco-effi cient LED lighting fi xtures in the Esplanade Park in Helsinki in order to extend winter lighting to some extent.
HELENREALESTATE DEVELOPED DATA CENTRE SERVICESHelenRealEstate manages and develops Helsingin Energia’s work depot, residen-tial and offi ce buildings for Helsingin Ener-gia’s own use, for external tenants and for use as employee residences. Rental income from real property amounted to EUR 11.3 million in the review year. About half of it came from external customers; and the other half was internal rents from Helsingin Energia’s other business units.
Helsingin Energia and Academica Oy are establishing an eco-effi cient Data Centre in the former Suvilahti substation in Helsinki, to be opened in August 2011. The size of the Data Centre will be about 2,000 square metres in the fi rst phase. The Data Centre will be based on the same concept as the Data Centre installed in a rock cave under the Uspenski Cathedral.
The heat output capacity of the Suvilah-ti Data Centre will correspond to the heat-ing and hot water requirement of 2,000 detached houses.
In both Data Centres, computers are cooled with district cooling, which Hel-singin Energia produces using heat pumps, cold sea water and surplus thermal ener-gy from energy generation. The heat pro-duced by computers, on the other hand, is conducted to the district heating network with a heat pump in order to heat up build-ings and service water in Helsinki.
District heating and cooling transmis-sion pipelines, high- and medium volt-age cables, optical fi bre cables used in da-ta transfer and the main water pipelines of the City of Helsinki are located in Helsingin Energia’s energy tunnel network. The total length of the energy tunnel network in Hel-sinki is approx. 60 km.
Helsingin Energia and Academica Oy will convert a former substation into an eco-effi cient data centre at Suvilahti in Helsinki.
12HELEN GROUP 2010
Subsidiaries
COLD WINTER AND ECONOMIC RECOVERY INCREASED ELECTRICITY CONSUMPTIONHelen Sähköverkko Oy is responsible for electricity transmission and distribution services in the Helsinki region, with the ex-ception of the areas in Sipoo that were an-nexed to Helsinki on 1 January 2009. The turnover of network operations totalled EUR 113 million. Growth on the previous year amounted to almost EUR 12 million, which was due to the exceptionally cold beginning and end of the year, as well as the increase in distribution prices imple-mented in the middle of the fi nancial year.
Electricity consumption in Helsinki to-talled 4,730 GWh during the year. Con-sumption increased by 1.6% as a result of the economic upturn and the cold begin-ning and end of the year.
Helen Sähköverkko Oy continued to im-plement its major investment programme to safeguard a suffi cient network capacity and to develop an increasingly higher se-curity of electricity supply. During the fi -nancial year, the company’s investments totalled EUR 26.5 million.
The remote reading project in Helsinki city centre was completed. Remote reading in the suburbs will begin this year. At the end of 2010, nearly half of our customers in the distribution area had a remotely read electricity meter. Almost all of the electri-city users connected to remote reading – a total of 130,000 customers – can mon-itor their electricity use on an hourly basis through the Sävel Plus reporting service.
The construction work on the under-ground substation in Kluuvi in Helsinki city centre was completed, and installation of the equipment was started. The substa-
tion will be connected to the network this spring. Moreover, a signifi cant number of upgrade and improvement tasks were car-ried out during the past year.
Helen Sähköverkko Oy is a key parti-cipant in the development of smart grids through CLEEN Ltd, the energy and envi-ronment strategic centre for science, tech-nology and innovation, as well as in the Kalasatama energy-effi cient development project together with Helsingin Energia, Nokia Siemens Networks Oy and ABB Oy.
Automation of distribution substations progressed to a number of new sites, which will shorten the fault clearing time. The ob-jective is to have approx. 1,000 distribution substations within the sphere of remote control by 2015. The security of electri-city supply is at the level of long-term av-erage in Helsinki. In Helsinki city centre, there were two exceptionally long power failures. For this reason, the average power outage time per customer increased to 13 minutes from the previous year’s 3.7 min-utes. We aim to bring the average outage time down to 6 minutes by 2015.
The building of the plot sections of branch lines was abandoned in early March. According to the new practice, a new cus-tomer wanting to connect to the electrici-ty network will have to contact a network contractor on the construction of the branch line. The number of new connections to the electricity network during the year was 410, and the total number of connections at the end of the year was 30,819.
Negotiations on revising the descrip-tion of the main grid were continued be-tween Fingrid Oy, Vantaa Energy Electricity Networks Ltd, the Energy Market Authori-ty and the Ministry of Employment and the
Economy, with the objective of conclud-ing the matter during the current revision of the Electricity Market Act at the latest. Helen Sähköverkko Oy strives to fi nd a so-lution where a network company operat-ing in the conditions of the Helsingin met-ropolitan area will not be treated unequally to the other network companies with re-spect to the development and pricing of the main grid.
In the fi nancial year, building of a certi-fi ed operating system was launched in ac-cordance with the quality and environmen-tal standards.
GOOD RESULT FOR ENERGY METERING SERVICES IN A TIGHTENING COMPETITION SITUATIONMitox Oy produces energy metering ser-vices for companies operating in the en-ergy and real-estate sectors. The company gained a good result in a tightening com-petition situation. Its turnover totalled EUR 9.7 million.
Installation of remotely read electricity meters in Helsinki city centre was comple ted last year. The installation work of remotely read district heat meters also progressed ac-cording to schedule. All properties with dis-trict heating in Helsinki will have remotely read meters by the end of 2013.
The most signifi cant new project was the contract signed with PKS Sähkönsiir-to Oy on the delivery of a remote reading system and reading services for the energy metering of electricity. During the delivery project, which started in the autumn and will continue until 2014, a total of 81,000 metering points in the distribution area of PKS Sähkönsiirto Oy will be equipped with
Review of Helen Group’s operations in 2010
0,4kV56.4%
10 ja 20kV39.6%
110 kV4.0%
Electricity transmission sale devided by voltage level
Consumption of electricity in Helsinki
20062007200820092010
3,500
3,000
4,500
4,000
5,000GWh
4,531
4,5554,671 4,657
4,730
Reliability of electricity distribution
0.0
0.5
1.0
2006
2007
2008
2009
2010
hours
The annual interruption duration per client
13 HELEN GROUP 2010
remotely read meters. Mitox Oy is respon-sible for the turnkey service of the acquisi-tion and installation of electricity meters, the introduction of meter reading systems, the necessary information system, informa-tion technology and telecommunication services, and the operation of the system.
The operating environment of energy metering services is becoming increasingly challenging as competition steps up. Me-tering services are constantly required for the growing needs of the developing ener-gy market and to promote enhanced ener-gy effi ciency and energy monitoring.
BUSINESS PREMISES EXPANDED IN SÄHKÖTALO AS PART OF THE KAMPPI CENTREReal estate company Helsingin Sähkötalo is Helsingin Energia’s subsidiary in charge of the management and development of the Sähkötalo real estate. Sähkötalo in Kamppi, Helsinki, is the Main Building of Helsingin Energia. Designed by Alvar Aal-to, the building was completed in 1973. In addition to functioning as our Main Build-ing, the building has also been part of the Kamppi Centre since 2007. In the fi nancial year, the size of the business premises grew by 1,000 m2 with a medical centre and a dental practice opening in the new section of the premises.
In 2010, Sähkötalo had approx. 5.2 million visitors. The total volume of the building is approx. 25,000 m2, with about 15,000 m2 occupied by Helsingin Energia.
PROGRESS MADE IN HYDROPOWER MODERNISATION AND POWER UPGRADESOy Mankala Ab is a subsidiary of Helsingin Energia. The company owns the Manka-la, Ahvenkoski, Klåsarö and Ediskoski hy-dropower plants on the River Kymijoki. Oy Mankala Ab owns approx. 8.1% of Teolli-suuden Voima Oy, 12.5% of Suomen Hyöty-tuuli Oy and 50% of Suomen Merituuli Oy.
Energy production totalled 111.3 GWh at Mankala, 101.6 GWh at Ahvenkoski, 25.8 GWh at Klåsarö, and 2.9 GWh at Edis-koski. Total precipitation for 2010 in the Päijänne catchment area was 95% of the long-term average.
Rainbow trout and lake trout were planted at Mankala to comply with obliga-tions. Pike-perch and grayling fry were al-so planted. Sea trout, salmon and powan were planted at Ediskoski.
The modernisation and power upgrade of the Ahvenkoski power plant progressed with respect to the turbine delivery. An electrifi cation and automation procure-ment contract was signed. The bridge crane was also modernised.
A CHALLENGING YEAR FOR INSTALLATION AND DESIGN OPERATIONSSuomen Energia-Urakointi Oy (SEU) is a service company specialised in electronic urban technology, providing design, instal-lation, operation and data transmission ser-vices in networks and equipment rela ted to electricity transmission, distribution and use. SEU’s customers include owners of networks and electrical equipment in cor-porate real estates and industry.
The majority of the company’s instal-lation operations consisted of the build-ing and maintenance of medium- and low-voltage networks, traffi c lights, and lighting networks. The focus of design operations is on outdoor lighting. The company has of-fi ces in Helsinki, Espoo, Lahti and Pori.
In the fi nancial year, company turnover amounted to EUR 37 million, with a prof-it of EUR 0.8 million. As the service market in the energy sector expands and compe-tition steps up, it has become increasing-ly important to have the ability to devel-op operations and to possess fl exibility in changing situations. The exceptionally se-vere winter conditions posed a particular challenge to the operation of installation services, putting further emphasis on the seasonal nature of operational profi tability.
The 110-kV transmission line and its landscape towers between the substations at Salmisaari and Meilahti in Helsinki.
14HELEN GROUP 2010 14
ENVIRONMENTAL IMPACT ASSESSMENTS OF OFFSHORE WIND FARMS COMPLETEDSuomen Merituuli Oy, which is owned equally by Helsingin Energia and EPV Ener-gia Oy, aims to considerably increase the use of offshore wind power in Finland. The company’s objective is to build two large offshore wind farms (500–1,000 MW) off the coast of the Gulf of Bothnia and the Gulf of Finland.
Suomen Merituuli Oy continued prepa-rations for investment in two offshore wind farm projects in locations directed by the re-gional plans off the coasts of Raasepori-Inkoo and Siipyy in Kristiinankaupunki. The envi-ronmental impact assessments related to the projects were completed in spring 2010.
The Inkoo-Raasepori project consists of approx. 60 wind power plants in the open sea area off the coast of Inkoo at a distance of some 20 kilometres from Inkoo. The Sii-pyy project includes about 80 wind power plants at a distance of some 10 kilometres in the sea area outside Siipyy.
Suomen Merituuli Oy has worked on the functioning and resilience of the sea foundations of the wind power plants by testing them in authentic conditions, thus providing important working knowledge for the building of offshore wind power.
EXPANSION OF THE RAAHE WIND FARM WAS COMPLETEDSuomen Hyötytuuli Oy is the leading wind energy producer in Finland. It is owned equally by nine Finnish energy companies. In addition to wind power production, the company’s operations include marketing, research and product development.
The expansion of the Raahe wind farm of Suomen Hyötytuuli Oy was comple-ted. Production volumes increased along with four new wind power plants, and the amount of electricity generated by the wind farm grew to approx. 60 million kWh per year.
The offshore prototype of the Pori wind farm was also completed in the fi nancial year. The prototype wind farm was erec ted
outside Tahkoluoto in Pori. Its foundation was implemented with a new kind of steel coffer solution. The prototype is the fi rst wind power plant in Finland built on a sea foundation and the fi rst plant built in an area of moving ice.
Since the completion of the Raahe ex-pansion and the Pori prototype plant, the electricity generation of the wind farms to-tals over 90,000 MWh per year.
GOOD AVAILABILITY AT OLKILUOTOTeollisuuden Voima Oyj produces electri-city to its owners at cost price.
TVO’s nuclear power plant at Olkiluo-to in Eurajoki achieved a good production result. With 7.0 TWh, Olkiluoto 1 achieved
Associated companies
its eleventh best result so far, and its oper-ating ratio was 91.8%. Annual production of Olkiluoto 2, 7.2 TWh, was the third best of the plant unit thus far. The operating ra-tio of Olkiluoto 2 was 95.2%.
The building of Olkiluoto 3 was most-ly completed in 2010 and the installations at the reactor unit are in progress. Accord-ing to the supplier most of the installation work will be completed in 2012 and the nuclear technical introduction period will take approx. 8 months due to which the operation of the unit will start in the latter part of the year 2013.
HYDRO AND NUCLEAR POWEREPV Energia Oy operates as an electricity procurement channel for its shareholders.
An artist’s impression of TVO’s Olkiluoto nuclear power plant area.
The expansion of the Raahe wind farm of Suomen Hyötytuuli Oy was completed. Production volumes increased by four new wind power plants.
Review of Helen Group’s operations in 2010
1515 HELEN GROUP 2010
Procurement activities are based on the ab-sorption principle.
Electricity procurement by EPV Energia Oy is based on diverse energy sources. In 2010, Helsingin Energia acquired hydro and nuclear power through the company. EPV Energia Oy and Helsingin Energia co-operate in the development of offshore wind pow-er production in Finland through Suomen Merituuli Oy, which they own with an equal number of shares.
HYDROPOWER UPGRADESKemijoki Oy is Finland’s most signifi cant producer of hydropower and related ser-vices. The company owns 20 hydropower plants, 16 of which are located in the River Kemijoki water system, two along the River
Lieksanjoki and two along the River Kymi-joki. It also regulates the Lokka and Port-tipahta reservoirs, as well as Lake Kemijär-vi and Lake Olkkajärvi.
The company made substantial invest-ments in power upgrades. The renova-tion and improvement of old power plant machinery enables economical increase in hydro power with excellent regulation properties. The power upgrade of the ma-chinery in the Vanttauskoski power plant commenced in early January and will con-tinue until Easter of 2011. As a result of the power upgrade programme, the company will produce approximately 270 MW more power and increase its annual production of renewable and emission-free energy by about 280 GWh by 2017.
The environmental impact assessments of the wind farm projects of Suomen Merituuli Oy were completed.
The Pankakoski hydropower plant of Kemijoki Oy.
16HELEN GROUP 2010
Environmental review
Energy is part of everyday life
Energy is related to the ease and comfort level of everyday life directly in the form of heating or indirectly as the many func-tions and products enabled by electricity. In towns, the supply of energy is based on ef-fi cient district heating and combined heat and power generation. In Helsinki, this is still mainly carried out using fossil fuels (natural gas and coal), which are still the most suita-ble sources of energy. Measures to tackle the climate change have become an important boundary condition in the structures of soci-eties, in energy production, and gradually al-so in consumer habits. The responsibility lies with all parties to the energy chain.
Helsingin Energia set a target towards a carbon-neutral future already a few years ago. The 20 per cent share of renewable energy was adopted as the local target by 2020. A major development programme was prepared for the changes. In the early years of the programme, the use of forest-based biomass and open-sea wind farms are emphasised in order to replace fossil fuels.
The environmental impact assessments of offshore wind farms were completed dur-ing the year of operation. Helsingin Ener-gia’s experts took part in the media de-bate and attended local events in Inkoo and Raasepori. The projects can be implemented in these locations, as well as in Siipyy, with-out having any signifi cant impacts on the natural environment, but some of the future neighbours are very critical due to the visi-bility of the wind mills in the sea landscape.
With respect to the biomass projects, it was pointed out that the dreaded woodchip lorry rallies will not be necessary as wood pellets will be used in the fi rst few years, and later on biomass will be converted in-
to biocoal with a higher energy density, or refi ned into methane along the natural gas pipeline. A study of the life-cycle impacts of biocoal was launched, covering the entire chain all the way from forest to ash.
In addition to the climate targets, ma-jor changes will be required in energy pro-duction plants as the terms of the EU In-dustrial Emissions Directive are becoming more stringent. Increasingly more effi cient fl ue gas cleaning systems will be built in Helsingin Energia’s power plants. Deci-sions taking the overall economy into ac-count will be made in 2011.
The 4% saving achieved in the third year of implementing the energy effi ciency agreements in line with the EU directive is faster than the target line in terms of pro-duction plants, electricity and heat trans-mission networks, and also customer ser-vice measures.
Promotion of sensible energy use is a key part of Helsingin Energia’s environ-mental work. In addition to our own meas-ures, we disseminated our expertise in working groups of the ministries and City departments, in the Earth Hour campaign in the spring, during the Energy Awareness Week in the autumn, and in the develop-ment of consumption reports.
The Energy Advisory Centre, which is aimed at schoolchildren and consumers, al-so provides answers to energy-related ques-tions in Ilmastoinfo (Climate info), a joint project of the Helsinki metropolitan area.
The project on the suburbs of Helsinki examined differences in the district heating, electricity and water consumptions of the residents of six districts. Statistical monitor-ing will be utilised in the improvement of
energy effi ciency in old and new areas. Visibility in the cityscape is part of Hel-
singin Energia’s environmental activities. The appearance of work sites was devel-oped in a project for providing information about district heating and cooling excava-tions and tidy fencing. Street galleries dis-played on electricity distribution cabinets, implemented in co-operation with visu-al artists, enlivened the cityscape for the sixth year running. The functioning Van-hankaupunginkoski hydropower plant mu-seum is part of the Power Station Museum, which is earmarked for closure. The social media and co-operation with the Museum of Technology were utilised in order to save this piece of old industrial heritage.
ACTIVE ENVIRONMENTAL OPERATIONSHelsingin Energia’s environmental work was implemented in the business units through contact persons and experts in the environmental network. Environmental im-pact management uses operating systems, environmental handbooks for business op-erations, and energy effi ciency systems. The operation of our power plants and heating plants has the ISO 14001 environmental certifi cate. The entire Group is committed to constant improvement of environmental operations, which is ensured with regular internal and external audits.
Environmental aspects were also taken into account in the Group scorecards.
Helsingin Energia’s environmental ex-perts took part in the preparation of na-tional and EU-level statutes, which is a signifi cant channel for receiving early infor-mation. We took part in the completion of
Specific carbon dioxide emissions
Specific carbon dioxide
emissions
Total energy sup-plied, GWh
1990 1995 2000 2010
g/kWh
0
100
200
300
400
500
600
9,000
11,000
13,500
14,970
0
3,000
6,000
9,000
12,000
15,000
Particle emissions
1990 1995 2000 2010
mg/kWh
0
50
100
150
200200
56
2210
Acidifying emissions
1990 1995 2000 2010
mg/kWh
Sulphur dioxide
Nitrogen oxides
0
500
1,000
1,500
2,000
2,500
3,0001,470
680
580
1,520
310
230
390
180
17 HELEN GROUP 2010
Combined heat and power (CHP) production
the Industrial Emissions Directive and the reform of the Directive on Workers’ Expo-sure to Electromagnetic Fields.
The environmental operations of espe-cially the cleaning department were devel-oped in 2010. The department drew up its environmental goals and trained its em-ployees, e.g. in environmentally friendly cleaning methods.
The Green Offi ce environmental pro-gramme in the offi ces of Helsingin Ener-gia was updated in 2010. The objective of the programme is to increase environmen-tal awareness among employees and to re-duce the consumption of natural resources by saving energy and materials.
The environmental agents of the Laut-tasaari primary school carried out an as-sessment of the environmental operations of the Engineering house and awarded it with the environmental certifi cate of the environmental agents.
EMISSIONS REMAINED AT A LOW LEVELEmissions from energy generation in the Helsinki region increased from the previous year to a certain extent due to increased energy generation. Calculated by useful energy, emissions remained practically un-changed, with the exception of sulphur di-oxide whose specifi c emissions showed a slight increase.
Total fuel consumption in energy gener-ation increased by 9%, the share of natu-ral gas by 12% and coal by 2%. The share of natural gas in total fuel energy increased to 62%.
With respect to climate-warming car-bon dioxide emissions in 2010, we stayed
at the level of specifi c emissions propor-tioned to the amount of generation in the long-term descending line; calculated by tonnes, the previous year’s level was ex-ceeded. Carbon dioxide emissions amoun-ted to 3.8 million tonnes in the Helsinki re-gion, an increase of 8%.
The carbon dioxide emissions of pow-er assets elsewhere in Finland and those of purchased electricity are estimated to amount to 0.15 million tonnes. The carbon dioxide emissions per sold useful energy (electricity, heat, cooling), i.e. the speci-fi c emissions, remained unchanged at 260 g CO2/kWh. In the 2000s, specifi c carbon dioxide emissions have fl uctuated between 240 and 330 g CO2/kWh.
Acidifying sulphur dioxide and nitrogen oxide emissions in the Helsinki region in-creased in 2010, sulphur dioxide by 20% and nitrogen oxide by 9%. Particulate emissions remained practically unchanged despite in-creased energy generation. The utilisation of the desulphurisation plants remained at the normal level, the cold year and the increased use of heating plants affected on the level of sulphur dioxide emissions.
The annual average sulphur dioxide con-tents at the Vallila measurement station, which describes the impacts of energy ge-neration in the Helsinki air quality, totalled 2.2 μg/m3, and were at the same level as in the previous year. This was clearly below the limiting value of 20 μg/m3, which has been set to protect the ecosystem.
Fine particle emissions from the energy generation in the Helsinki region remained low, at 120 tonnes in 2010. The fl uctuation of emissions in the 2000s has been 110–720 tonnes a year.
Due to district heating, the thermal load of sea water has been relatively low in the past decades in the mandatory monitor-ing. The thermal load of sea water in 2010 totalled 260 GWh. The thermal load has fl uctuated in the 2000s between 180 and 2,200 GWh.
Any breakdowns of the Hanasaari and Salmisaari desulphurisation plants are re-ported immediately to the supervisory au-thorities. In 2010, there were few break-downs, and the utilisation rate of the desulphurisation plants remained high, Hanasaari at 98% and Salmisaari at 96%. However, the disturbance limit of 120 hours, as defi ned in the environmental per-mit, was exceeded with respect to the par-ticulate emissions of the district heating boiler at the Salmisaari A plant. Because the outage time of the Salmisaari B power plant lasted longer than expected the dis-trict heating requirement was met with the A plant which caused the minimum envi-ronmental impacts.
Due to spring fl oods, the annual mainte-nance of the museum power plant was de-layed until summer when the water of the River Vantaanjoki fell below the regulated level for the duration of one weekend. After the pipelines in the Salmisaari power plant boiler had been renovated, they were blown clean using steam, which resulted in noise and steam clouds in the surrounding area for a couple of weeks. The local residents were kept fully informed of the situation.
BYPRODUCTS OF COMBUSTIONThe combustion of solid fuel produces by-products in the form of bottom ash and fl y ash, as well as a solid desulphurisation
District heat supply
CHP production 85%
Separate production 15%
6,636 GWh
Electricity
CHP production 98%
Separate production 2%
5,596 GWh
18HELEN GROUP 2010
product created in the desulphurisation process. Utilisation of fl y ash in the pro-duction of cement and concrete picked up on the previous year, and about half of the ash was utilised. Applications for bottom ash were also found in earth construction towards the end of the year.
A FORERUNNER IN ENERGY EFFICIENCYHelsingin Energia has long traditions in the promotion of energy effi ciency. This is im-plemented in combined heat and power generation, district heating and cooling, and in energy advisory services. The signifi cance of energy effi ciency has grown strongly be-cause it is a fast and cost-effective method in the mitigation of climate change.
We were able to further improve the en-ergy effi ciency of energy production and the distribution network in Helsinki, which was already at a high level, with co-gener-ation and network operation and mainte-nance. Heat and cold accumulators help to even out consumption peaks. As a new in-novation, we implemented the district cool-ing of the data centre beneath the Uspens-ki cathedral, as well as the capture of waste
heat from the data centre servers and its uti-lisation in the district heating network. Ener-gy audits were carried out in the Salmisaari B power plants and the Lassila heating plant, with energy saving investment made on the basis of these audits. Improvement of energy effi ciency in substations was also launched
Development of consumption monitor-ing and audits in Helsingin Energia’s offi ce buildings was postponed until the current year.
We installed energy saving programmes in desktop computers, which is estimated to halve the energy consumption of work stations.
GOOD SERVICES IN ENERGY SAVINGGood reporting services in energy use are important in the monitoring of consumption habits and in sensible allocation of saving measures. The Sävel Plus reporting service enables hourly monitoring for all customers with a remotely read meter. In the service, it is possible to record personal energy con-sumption targets and monitor their imple-mentation. Own consumption can also be compared with other households.
In 2010, Helsingin Energia’s energy ad-visory service received more than 40,000 telephone calls and over 30,000 e-mail en-quiries, and had almost 5,000 visitors to the advisory centre in Sähkötalo in Kamp-pi. Approx. 1,800 customers borrowed the electricity consumption, surface tempera-ture and moisture meters.
As a new service, we piloted the home visits of an energy expert to map out the possibilities of improving the effi ciency of customers’ energy use. Distribution of in-formation on energy saving with the aid of humour on Youtube is also a new project. The energy saving tips of MotoriikkaMiikka had more than 15,000 visitors.
The Ilmastoinfo (Climate info) advisory service, a joint project of the Helsinki met-ropolitan area, was launched in 2010. Hel-singin Energia’s energy advisors took part in Ilmastoinfo’s fi rst campaign, the Reduce a Tonne challenge, during the Energy Aware-ness Week. Citizens made climate pledges online and in Narinkkatori in the Kamppi shopping centre. Helsingin Energia is one of the main partners of Ilmastoinfo.
Environmental review
District cooling equipment in the Uspenski data centre, which was inaugurated in October.
MotoriikkaMiikka gives some good and also some wacky energy-saving tips in Helsingin Energia’s YouTube channel.
19 HELEN GROUP 2010
2010 2009 1,000 € change % 1,000 €ENVIRONMENTAL COSTS Protection of air, soil and surface waters Desulphurisation 6,724 29 5,217 Denitrifi cation 281 -35 432 Removal of particles 573 7 538 Waste management and utilisation of combustion products 1,433 25 1,145 Other waste management 1,063 -1 1,068 Monitoring of emissions and environmental impacts 234 -27 322 Interaction Energy-saving advice 1,122 10 1,022 Environmental communication and marketing 269 9 247Environmental management and training 1,884 5 1,801Environmental protection research and development 1,306 14 1,145Landscaping 19 -80 95Noice and vibration abatement 19Improvement of eco-effi ciency 236Depreciation on environmentalprotection investments 1,760 2 1,730
ENVIRONMENTAL COSTS IN ALL 16,921 15 14,760 % of turnover 2.4 % 2.0 % % of all expenses 3.4 % 3.0 % ENVIRONMENTAL INVESTMENTS 3,409 309 834 % of all investments 3.6 % 1.2 %
ENVIRONMENTAL LIABILITIES 18,800 0 18,800 % of balance sheet total 1.3 % 1.3 % ENVIRONMENTAL REVENUE 496 154 195
Environmental investments increased
Helsingin Energia’s active approach to cli-mate and environmental issues is manifes-ted in the growing environmental costs, which last year amounted to almost EUR 17 million, a 15% increase on the previ-ous year. Environmental costs accounted for 2.4% of the turnover.
Proportionally, environmental invest-ments showed the greatest increase, treb-ling to EUR 3.4 million compared with 2009. The greatest investment project was the construction of the by-product buil-ding for the Salmisaari power plant, cos-ting EUR 1.5 million. In the building, by-products can be processed and recycled back to the combustion and fl ue gas treat-ment processes without disturbing the en-vironment. Returning the water back into the process reduces the water consumpti-on of the plant. The amount of waste and other environmental impacts are also redu-ced with the by-product building.
In Salmisaari, the availability of the de-sulphurisation plant was also developed and oil separation basins were built.
Major investments were also made in heating plants where, e.g. energy effi cien-cy and noise and vibration abatement we-re developed.
Over EUR 10 million was spent on pro-tection of air, soil and water systems, with desulphurisation amounting to almost EUR 7 million.
At EUR 1.3 million, environmental pro-tection research and development costs continued to grow. Key research and de-velopment areas included improvement of eco-effi ciency, development of desulphuri-sation and denitrifi cation, development of emissions measurement, and research on renewable fuels and energy sources.
Environmental income totalled almost EUR 0.5 million, accrued mainly from the sale of energy saving advisory services.
Environmental fi nancial statements
20HELEN GROUP 2010
Personnel section to the annual report 2010
Multi-skilled professionals taking on the challenges of the development programme
Personnel by task groupThe amount of personnel
A CHALLENGING FUTUREHelsingin Energia’s development pro-gramme towards a carbon neutral future sets great challenges for human resources planning, foresight and the development of strategic areas of expertise. New demands for expertise are under consideration in various business units.
At the same time, the need for man-power in the energy sector is expected to grow and the number of working-age popu-lation to fall, and therefore competition for talented professionals is stepping up.
INCREASINGLY ATTRACTIVE EMPLOYER – HELEN IS A GOOD EMPLOYERIn order to ensure the availability of man-power, a company must have a good and wide reputation as an employer. Helen has clearly invested in building a good image as an employer, e.g. through systematic de-velopment of co-operation with education-al establishments and focusing on key in-stitutes.
Helsingin Energia has been involved in recruitment fairs and student events more often than before and organised student excursions to power plants. The business units were encouraged to provide even more trainee positions for students and summer jobs for young people.
As a result of investing in its image as an employer, Helsingin Energia was presented with the Highest Climber award in the Uni-
versum employer image survey conducted among students of technology. According to the survey, the students’ image of Hel-singin Energia as an employer had vastly improved since the previous year.
SUCCESSFUL DEVELOPMENT OF COMPETENCEEffectiveness in personnel development has been sought with clearer goal-orien-tation. Training courses and events have focused especially on leadership and pro-fessional continuing education. The lead-ership training programme, Tähtäimessä 2015 (Setting sight on 2015), involving 126 managers and key experts, was com-pleted with a target of a unifi ed Helen Group and leadership system. Manage-rial skills are constantly maintained with vari ous orientation, training and coaching events. A 360-degree assessment for man-agers was also arranged in support of the development of personal managerial work. The investment in leadership training has also been acknowledged in an external as-sessment. At the end of the year, Helen-Electricity was awarded the internation-al Investors in People certifi cate for good leadership and management. The award is the fi rst to be presented to an energy com-pany in Finland.
Customer services have been system-atically developed by organising training events for all of our customer service em-ployees. One example of their success is
the EPSI Rating customer satisfaction 2010 survey, in which Helsingin Energia was number one in the customer satisfaction of electricity companies.
Apprenticeship training has been uti-lised in recruitment and in Helsingin Ener-gia’s own personnel training. In the spring, 14 Helen employees passed the power plant operator course, and, once gaining a suffi cient level of work experience, they can apply for the qualifi cation certifi cate of a Third Engineer.
Internal training is boosted with the aid of e-learning to be more effective in terms of learning results and costs. Orientation of new employees was chosen as the pilot subject for the development of e-learning. The objective of the e-orientation course is for new Helen employees to obtain an overall picture of the operations of the He-len Group at a faster rate and at their own pace: what we are doing and what factors are guiding our operations. It also helps new employees to understand their own role, as well as that of others, as part of a major energy company. Personal orienta-tion meetings focused more on interaction and meeting other Helen employees in or-der to promote networking. This way, new employees are able to get a diverse picture of the energy sector, which requires multi-skilled employees.
The charts on pages 20 and 21:Helsingin Energia, Helen Sähköverkko Oy and Mitox Oy
0
300
600
900
1,200
1,500
2006 2007 2008 2009 2010
1,4421,452 1,458 1,481 1,437
MaleFemale
380
1,057
392
1,060
385
1,057
394
1,064
401
1,080
Management tasks 16%
Expert tasks 29%
Administrative and customer service tasks 11%
Technical tasks 43%
Other 1%
21 HELEN GROUP 2010
OCCUPATIONAL ACCIDENT SITUATIONThe positive trend in the number of occu-pational accidents, which has continued since 2007, showed a slight deterioration. In 2010, there were a total of 39 occupa-tional accidents at the Helen Group. An oc-cupational accident is an accident result-ing in one or several days of incapacity for work (LTI1).
Last year, 10 commuting accidents were reported, which is one fewer than in 2009.
The frequency of occupational accidents has increased from the previous year. Last year, the accident frequency per one mil-lion working hours totalled 17, while in 2009 this fi gure was 15.5. With respect to commuting, the frequency of occupational accidents was 4.4, somewhat lower than in the previous year.
PERCEIVED WORKING CAPACITY HAS IMPROVEDAccording to the results of the Work and Health Survey for 2010, Helsingin Energia’s employees feel that their working capac-ity was slightly better in 2010 than three years before.
In the survey, perceived working capa-city was assessed on a scale of 0–10. This year, 47% of employees rated their capa-city for work at ten or nine while the previ-ous year’s fi gure was 43%. Specifi ed into physical and mental demands, the per-ceived working capacity among Helsingin Energia’s employees was also slightly bet-ter than in 2007.
Work enjoyment and good working ca-pacity still account for the low employee turnover rate and high retirement age.
Occupational accidents
Commuting accidents
The lost time incident rate
2006 2007 2008 2009 2010
accidents/million working hours
O
Co
25
20
15
10
5
0
Occupational accidents
Commuting accidents
The number of accidents
2006 2007 2008 2009 2010
pcs
0
10
20
30
40
50
60
0
5
10
15
20
The average employment time
2006 2007 2008 2009 2010
Years
Absence due to illness
% of theoretical work days
0
2
4
6
20072006 2008 2009 2010
22HELEN GROUP 2010
Dynamic research and development activities
The Helen Group continued its key research and development projects on future ener-gy production technologies and utilisation of biofuels. Development work in these are-as creates a basis for the implementation of Helsingin Energia’s development programme towards a carbon-neutral future.
Development work on smart energy grids continued with the Kalasatama project. In this pilot project, the possibilities of increasing energy effi ciency and providing new en-ergy services with smart grids are developed in co-operation with Nokia Siemens Net-works and ABB.
Our R&D activities promoted more widespread use of climate-friendly electric vehi-cles and development of a network of recharging points for electric vehicles in Helsinki.
Helsingin Energia expanded its eco-effi cient data centre concept with Academica Oy: a decision was made to convert the old Suvilahti substation into a data centre where the equipment is cooled with district cooling and the produced heat is utilised in dis-trict heating.
Investments in R&D activities accounted for 0.8% of Group turnover.
Helsingin Energia’s development programme towards a carbon-neutral future
The broad energy policy approved by the Helsinki City Council on 30 January 2008 set the objective that in Helsingin Energia’s power and heat production and procurement, the share of renewable energy sources by 2020 would be at least 20%, and that in pow-er and heat production, Helsingin Energia will reduce greenhouse gas emissions by 20% by the year 2020 from the level of the year 1990.
On 8 December 2010, the Helsinki City Council approved Helsingin Energia’s devel-opment programme towards a carbon-neutral future.
The development programme is founded on the climate targets set for Helsinki by the City Council, as well as Helsinki’s goals regarding use of city space. The development pro-gramme sets out a concrete action programme to reach the 2020 targets, as well as an outline for action guidelines to the halfway mark of the century.
The development and action programme will progress in phases towards the targets. Decisions on the projects under the programme will be individually made. The opportu-nities provided by the development of new technologies can be fully utilised to increase renewable energy and to reduce greenhouse gas emissions.
The Helsingin Energia development programme towards a carbon-neutral future will be implemented as a major investment programme, which will after its implementation reduce Helsingin Energia’s profi ts in the coming years.
Our annual report on the internet helen.fi /vuosi2010 presents Tea Erätuuli’s, Markku Hyvärinen’s and Juha Sipilä’s thoughts of R&D activities in the Helen Group.
Helsingin Energia’s recharging point for electric vehicles at Kamppi in Helsinki. The model smart grid area at Kalasatama in Helsinki. An artist’s impression.
23 HELEN GROUP 2010
Helen Group press releases
18 May 2010Data Centres heat buildingsHelsingin Energia wins 2010 Green Enterprise IT AwardHelsingin Energia today received prestigious international recognition from the IT industry for its energy-effi cient operation, as Project Manager Juha Sipilä accepted the fi rst prize (2010 Green Enterprise IT Award) at the annual Data Centre Effi ciency & Green Enterprise IT Symposium in New York.
20 May 2010For all electricity and district heating usersHelsingin Energia’s new Sävel Plus reporting service helps save energyHelsingin Energia’s new, free energy consumption reporting service, Sävel Plus, is avail-able at www.helen.fi /raportointi. All electricity and district heat customers are welcome to use the service, in which they can monitor their own energy consumption and further sensible ways of using energy.
22 June 2010District cooling now also cools homes in Helsinki Could an air-conditioned home be the new trump card on the housing market? The latest achievement of Helsingin Energia’s district cooling operation is in residential properties. There are seven district-cooled residential buildings in Helsinki already. New residential areas being built in Jätkäsaari and Kalasatama in Helsinki will be completely ready for district cooling.
12 July 2010Helsinki’s district cooling exceeds 100 MWHelsingin Energia’s district cooling operation today exceeded the magic 100 MW barrier. This fi gure represents the combined connected cooling loads of district-cooled buildings. Helsinki has one of Europe’s largest and fastest growing district cooling systems, the capa-city of which is equivalent to the district heating network of a medium-sized Finnish town.
19 August 2010Helsinki street galleries opened with new works of artArtistic experiences may surprise Helsinki pedestrians, due to street galleries that have opened with new works of art. Electricity distribution cabinets in Eerikinkatu, Fleminginkatu and Museokatu present the work of many different artists. The artist Magdalena Åberg, who had the original idea of the galleries, has chosen ‘Counterforce’ as their common theme.
4 October 2010MotoriikkaMiikka teaches energy saving on the netThe information bulletins published by Helsingin Energia on the eve of Energy Awareness Week show that everyone with the right mindset can save energy. The savings made can be verifi ed by monitoring one’s own consumption. The energy-saving videos playing on the Helsingin Energia website introduce probably the most passionate energy saver in Fin-land, MotoriikkaMiikka.
AWARDS AND COMMENDATIONS
Finnish Energy Industries’ Climate Achievement commendation: Kalasa-tama intelligent power network project Best electricity vendor: In the sur-vey ‘Finland Today Electricity Vendors 2010’ carried out by Taloustutkimus, Helsingin Energia gained the best ave-rage overall score. Finnish electricity consumers also clearly regarded Hel-singin Energia as the most interesting electricity vendor.National business image, best over-all score: Taloustutkimus 2010 Best customer service: Helsingin Energia was rated the best in the EPSI Rating survey carried out among customers. IIP quality standard in staff development: HelenElectricity is the fi rst energy company in Finland to be awarded the international IIP Inves-tors in People quality standard. The certifi cate is in recognition for good leadership and management and in-vesting in personnel. The Mayor’s quality award: The fi rst prize in the Mayor of Helsinki’s quality award competition went to HelenDistrictHeat for customer-led and energy-effi cient operation.Excellence Finland commendation: HelenDistrictHeat was awarded the Excellence Finland commendation for consistent, customer-oriented and energy-effi cient operation. International Green Enterprise IT Award: Prestigious international IT sector recognition for energy-effi cient operation (data centre concept).
The Season of Light installations illuminated Helsinki at the turn of the year.
The street galleries of Helen Sähköverkko Oy were displayed on the electricity distributions cabinets with the theme “counter force”. The picture presents Ulla-Mari Lindström’s work “Valmis keho”.
24HELEN GROUP 2010
Helsingin Energia Organisation
15.2.2011
Seppo RuohonenCEO
MANAGEMENT
Pekka ManninenDirector, Managing Director´s 1. deputyResponsibilities: HelenPower, HelenPortfolioManagement,Energy Business Development
Veikko HokkanenDirector, Managing Director´s 2. deputyResponsibilities: HelenDistrictHeat, HelenCooling, District Heat Development
MANAGEMENT SUPPORT
Martti Hyvönen Environmental DirectorMarkus Lehtonen Director of Business DevelopmentTiina Nyström Chief Legal Counsel
SERVICE UNITS
Group Services*Kauno KaijaDirector
Customer Service and CommunicationsJarmo KarjalainenDirector
*Group Services = Human Resources, Finance, Procurement Services,Real Estate Services, Corporate Security
BUSINESS UNITS
HelenPowerAri LaineDirector
HelenPortfolio-ManagementHarri MattilaDirector
HelenDistrict HeatMarko RiipinenDirector
HelenCoolingNiko WirgentiusDirector
HelenElectricityJukka NiemiDirector
HelenServiceKaj GrönroosDirector
HelenEngineeringMarkku SaukkonenDirector
SEPARATE BUSINESS
HelenRealEstateSami AihoUnit manager
HelenOutdoorLightingOlli MarkkanenUnit manager
ICT-ServicesAntti TalpilaUnit manager
HelenTunnelsJorma VilkmanUnit manager
25 HELEN GROUP 2010
Ari Laine Marko RiipinenHarri Mattila
Pekka Manninen Veikko HokkanenSeppo Ruohonen
Niko Wirgentius Jukka Niemi Kaj Grönroos Markku Saukkonen
Jorma VilkmanAntti TalpilaSami Aiho Olli Markkanen
Markus LehtonenMartti Hyvönen Tiina Nyström
Kauno Kaija Jarmo Karjalainen
26HELEN GROUP 2010 26
The Helsingin Energia Board
Jere Lahti (kok)Chairman
Annika Andersson (vihr) Anna-Maria Kantola (sd) Marko Kosunen (vihr)
Piia Häkkinen (vihr)Debuty chairman
Sakari Oka (kok) Jouko Sillanpää (sd) Mikael Sjövall (r) Irmeli Wallden-Paulig (kok)
The Helsingin Energia board developes and supervises Helsingin Energia’s operations.
kok, National Party; r, Swedish People’s Party; sd, Finnish Sosial Democratic Party; vihr, Green League of Finland
2727 HELEN GROUP 2010
HELSINGIN ENERGIA
Postall address: Telephone exchange: Fax:00090 HELEN, Finland +358 9 6171 +358 9 617 2360
www.helen.fi
Visiting addresses:Main offi ce SähkötaloKampinkuja 2, HelsinkiMalminrinne 6, Helsinki
Vuosaari Power PlantsKäärmeniementie 6-8, Helsinki
Hanasaari Power PlantsParrukatu 1-3, Helsinki
Salmisaari Power PlantsPorkkalankatu 9-11, Helsinki
Kellosaari Stand-by Power PlantKellosaarenkatu 12, Helsinki
Vanhankaupunki Hydropower PlantHämeentie 163, Helsinki
Ahvenkoski, Klåsarö and Ediskoski Hydropower PlantsVoimalantie 31, Ahvenkoski
Subsidiaries:
Helen Sähköverkko Oy(Kampinkuja 2, Helsinki)00090 HELEN, Finland
Mitox OyPL 469 (Parrukatu 5, Helsinki)00101 Helsinki, Finland
Oy Mankala AbSitikkalantie 18947400 Kausala, Finland
Kiinteistö Oy Helsingin SähkötaloHelsingin Energia (Kampinkuja 2, Helsinki)00090 HELEN, Finland
Suomen Energia-Urakointi Oy (SEU)PL 469 (Ohrahuhdantie 13, Helsinki)00101 Helsinki, Finland
Associated companies:
Vantaan Energia OyPeltolantie 2701300 Vantaa, Finland
Finestlink OyPL 40 (Töölönkatu 4, Helsinki)00101 Helsinki, Finland
Suomen Merituuli Oyc/o EVP Energia Oy Frilundintie 7 65170 Vaasa, Finland
Address
28HELEN GROUP 2010
Annual Report, the team: Helsingin EnergiaCommunications and marketing: Ulla-Maija Alander, Arto Korhonen, Eija Lehtomäki, Kari Pilkkakangas, Seija UusitaloEnvironment: Martti Hyvönen and the environmental team Financial Statements: Antti Hellaakoski and Jani Hirvijärvi
Photographs: Juhani Eskelinen, Mikael Gylling/Molino Oy, Pekka Hannila,Helsinki City Planning Department © Adactive Oy, Kemijoki Oy’s image bank, Arto Korhonen, Lentokuva Vallas Oy, Ulla-Mari Lindström, Juhana Mikkanen, Jakke Nikkarinen,Teollisuuden Voima Oyj’s image bank, Samuli Ronkanen, Suomen Hyötytuuli Oy and Suomen Ilmakuva Oy
Printing offi ce: Edita Prima Oy, 2011
In the festive season, Helsingin Energia was visible in the cityscape through the Season of Light event.
The view from Merihaka towards Kruununhaka and Katajanokka.
NO
RDI
C
ENVIRONMENTAL LABEL
441 002
Printed matter
29 HELEN GROUP 201029 HELEN GROUP FINANCIAL STATEMENTS 2010
Helen GroupFinancial statements
and report on operations 2010
Key Figures _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 30
Report on Operations
for the Financial Year _ _ _ _ _ _ _ _ _ 31
Profi t and Loss Account _ _ _ _ _ _ _ _ 35
Balance sheet _ _ _ _ _ _ _ _ _ _ _ _ _ _ 36
Cash Flow Statement _ _ _ _ _ _ _ _ _ 38
Notes to the Financial Statements _ _ 39
Auditor’s report _ _ _ _ _ _ _ _ _ _ _ _ 43
30HELEN GROUP FINANCIAL STATEMENTS 2010
2010 2009 2008 2007 2006
Net turnover (M€) 830 824 793 715 691
Operating profi t (M€) 289 281 298 283 240
Total assets (M€) 1,642 1,605 1,662 1,656 1,592
Return on investment % 20 19 20 20 19
Equity ratio % 63 63 63 62 60
Investments (M€) 120 120 110 82 76
Helen Group Key Figures
Computations of indicators
Return on investment, %
Net profi t before extraordinary items + other interest and fi nancial expenses
Average invested capital
Equity ratio, %
Equity + reserves
Total equity and liabilities - advances received
x 100
x 100
Return on investment
Net turnover and operating profi t Total assets
Equity ratio
0
200
400
600
800
1,000
2006 2007 2008 2009 2010
€ in millions
691
240
715
283
793
298
Operating profit
Net turnover
281 289
824 830
0
500
1,000
1,500
2,000
2006 2007 2008 2009 2010
€ in millions
1,592 1,656 1,662 1,605 1,642
0
5
10
15
20
2006 2007 2008 2009 2010
%
1920 20 20
19
2006 2007 2008 2009 2010
%
60 62 63 63 63
0
10
20
30
40
50
60
70
31 HELEN GROUP FINANCIAL STATEMENTS 2010
HELEN GROUP’S REPORT ON OPERATIONS FOR THE FINANCIAL YEAR 1.1. - 31.12.2010
Helen Group is a commercial entity, which consists of the parent company Helsingin Energia and
its wholly owned subsidiaries Helen Sähköverkko Oy, Mitox Oy, Oy Mankala Ab, the real estate
company Helsingin Sähkötalo, as well as of Suomen Energia-Urakointi Oy, 60% owned by
Helsingin Energia. The associated companies of the Helen Group are Suomen Merituuli Oy,
Vantaan Energia Oy and Finestlink Oy.
In the accounts of the City of Helsinki, Helsingin Energia is included in the fi nancial statements
of the City of Helsinki, and the subsidiaries of Helen Group are included in the consolidated
fi nancial statements of the City of Helsinki.
As a municipal corporation, Helsingin Energia operates in the whole Finnish electricity retail
market and in the Nordic electricity wholesale market. Over 90% of the heat demand in Helsinki
is covered with district heat, and district cooling is vigorously expanding in Helsinki. Helsingin
Energia’s operations model is based on unbundled business and service operations in compliance
with the Electricity Market Act, the natural Gas Market Act and the Act on Competition
Restrictions. The corner stones of Helsingin Energia’s business operations are competitiveness,
operational reliability and environmental awareness.
Helsingin Energia generates electricity, heat and cooling at its own power plants in Helsinki.
In addition, the company acquires electricity through its power assets. There was an increase in
eco-effi cient cogeneration, which accounted for almost 70% of electricity procurement. Procurement
of hydro and wind power accounted for approx. 6% and that of nuclear power for 18% of energy
procurement.
Sales trend
Particularly cold winter weather at the beginning and end of the year had a clear impact on the
energy requirement in 2010. More district heat was generated in Helsinki than ever before.
At 7.4 TWh, district heat sales grew by 9% from 2009, and, at 7.7 TWh, the total electricity sales
increased by 1%. Electricity sales to end customers amounted to 3.8 TWh, up approx. 3% over the
previous year. District cooling sales were 83 GWh, and the number of district cooling customers
increased by more than 30%.
In spite of the increased sales volumes of energy, the turnover of Helsingin Energia diminished
by EUR 7 million from the previous year. This was mainly due to the price level of district heat,
which was 22% lower than in the previous year. The revenues from heat sales amounted to
EUR 284 million, which was EUR 16 million less than in the previous year. During a prolonged
spell of sub-zero temperatures at the beginning of the year, rapid changes in the electricity market
resulting from inadequate production capacity caused unfavourably steep price spikes in the
Nordic electricity market. The revenues from electricity sales totalled EUR 390 million.
Subsidiaries
Helen Sähköverkko Oy concentrates on electricity network operation in compliance with the
Electricity Market Act and provides transmission and distribution services to its customers in the
Helsinki area. Helen Sähköverkko Oy’s turnover accounts for approx. 14% of the Helen Group’s
turnover. The turnover for the review year was EUR 113 million. Helen Sähköverkko Oy had
108 employees at the end of the review year.
Total electricity consumption in Helsinki was 4,730 GWh, up 1.6% over the previous year.
32HELEN GROUP FINANCIAL STATEMENTS 2010
Mitox Oy provides a wide range of energy metering services to companies operating in the energy
and real-estate sectors. Mitox Oy provides the metering services required by Helsingin Energia and
Helen Sähköverkko Oy. Mitox Oy had an average of 107 employees during the review year.
The company operates in a competitive metering market. The sector’s total volume is on the
increase. Behind the increase is the fact that energy companies increasingly invest in remote reading of
energy meters. Another reason is that the need for metering increases as the electricity market develops.
Mitox Oy’s turnover stood at EUR 9.7 million. The bulk of the turnover came from selling metering
services to the Helen Group.
Oy Mankala Ab is a hydropower company owned by Helsingin Energia. The company owns
the Mankala, Ahvenkoski, Klåsarö and Ediskoski hydropower plants. Oy Mankala Ab has an 8%
share in Teollisuuden Voima Oy.
Total precipitation in 2010 in the Päijänne catchment area was 95% of the long-term average. In
the operating year, the Mankala hydropower plant produced a total of 111,271 MWh of energy, while
Ahvenkoski produced 101,626 MWh, Klåsarö 25,837 MWh and Ediskoski 2,900 MWh of energy.
Oy Mankala Ab operates on the absorption principle. The company’s turnover for the fi nancial
year was EUR 32 million.
Real estate company Helsingin Sähkötalo is responsible for the administration and development
of the Sähkötalo real estate. Sähkötalo also functions as Helsingin Energia’s Main Building.
Suomen Energia-Urakointi Oy is a service company specialised in electronic urban technology,
providing design, installation, operation and data transmission services for networks and equipment
related to electricity transmission, distribution and use. Helsingin Energia owns approx. 60% of the
company. The other owners are Vantaan Energia Oy and Lahti Energia Oy.
Suomen Energia-Urakointi Oy’s turnover for 2010 was EUR 37 million. The company’s business
operations consist of installation and design activities. The key proportion of the volume comes
from installation activities, which mainly consist of the construction and maintenance of medium
and low-voltage networks, traffi c lights and lighting networks. With respect to design activities,
the bulk of the volume comes from designing outdoor lighting systems.
Group turnover
The turnover for the operating year was EUR 830.2 million, with an increase of EUR 5.8 million
over the previous year.
Expenses
Expenses excluding depreciation amounted to EUR 483.8 million. Fuel costs grew by EUR 1 million
from the year before. There was a drop of EUR 8 million in electricity purchases and electricity
procurement from our shares in partly-owned power plants. Other cost items were increased by
operation and maintenance measures in power plants. Production for own use amounted to
EUR 4.7 million, and planned depreciation to EUR 71.6 million, while depreciation on goodwill
was EUR 3.1 million.
Fixed assets and other long-term investments
In 2010, Helen Group’s investments amounted to EUR 120 million. Helsingin Energia invested
EUR 29 million in district heating (EUR 38 million in 2009), EUR 10 million in district cooling
(EUR 7 million in 2009), EUR 18 million in power plants (EUR 9 million in 2009) and EUR 8 million
in outdoor lighting systems (EUR 9 million in 2009). The investments of Helen Sähköverkko Oy
amounted to EUR 27 million (EUR 44 million in 2009).
33 HELEN GROUP FINANCIAL STATEMENTS 2010
Profi t trend
Helen Group’s operating profi t stood at EUR 289.3 million (EUR 281 million in 2009), accounting
for 34.8% of the turnover. Profi t before appropriations was EUR 277.3 million (EUR 263.4 million in
2009). Return on investment (ROI) was 20%, calculated according to the mean value of the capital
invested in the fi nancial year.
Key fi nancial indicators
2010 2009 2008
Turnover M€ 830.2 824.4 792.5
Operating profi t M€ 289.3 281.0 297.7
Operating profi t % 35 34 38
Return on equity % 26 25 27
Equity ratio 63 63 63
Personnel, on average 1,713 1,740 1,721
Environment and quality
The cornerstones of Helen Group’s business operations are excellent security of supply and other
qualitative factors. Helen Group’s operations are based on ecologically effi cient cogeneration in
line with the principles of sustainable development. District cooling is obtained from the same
production processes, which further increases the energy-effi ciency of operations.
Centralised energy production falls within the scope of the EU Emissions Trading Scheme
(EU ETS). The energy and climate policy of the Helsinki City Council will impact the future energy
production decisions in Helsinki. Helsingin Energia has devised a development programme which,
when implemented, will cover the targets set by the City Council and help pave the way towards
a carbon neutral future.
The most important method of attaining the climate policy targets is to raise the share of
renewable energy production forms in the present production structure. Helsingin Energia is actively
involved in the development of state-of-the-art combustion plants.
Our tools for keeping environmental impacts under control are the power plants’ common
environmental management system which comply with the ISO 14001 standard, the environmental
handbooks of the different business units and the Green Offi ce environmental criteria applied to all
offi ce premises. Helsingin Energia will draw up a separate environmental report and environmental
fi nancial statements, which will not, however, be audited by an independent outside party.
Organisation of internal control and risk management
It is the responsibility of Helsingin Energia’s management to ensure that the municipal corporation
has effi cient risk management and internal control practices with respect to the extent and content
of its economy and business operations.
With respect to the extent and structure of its operations, Helsingin Energia has extensively
assessed the most signifi cant risks and uncertainty factors, as well as other factors affecting
operational development. In risk management, the different types of risks are identifi ed and
operating procedures are documented and maintained. The essential thing is that business risks
are managed and the related control functions are in order.
Internal control and risk management have been organised by including risk-management
thinking in all activities in the municipal corporation. The responsibility for controlling risks has
been differentiated by assigning it to persons who are independent of operational business
activities. It is the responsibility of the working group on development of risk management to assess
the development needs of risk management in energy trading.
34HELEN GROUP FINANCIAL STATEMENTS 2010
Risk management in energy trading has been developed in 2010 by improving the forecasting
methods applied to energy procurement, by sharpening trading strategies, by expanding trade
opportunities, as well as by developing scenario inspections.
Operating principles and risk management instructions approved by the Board have been drawn
up for Helsingin Energia’s energy trading. The electricity market is highly volatile and predictability
is expected to weaken. Competition will become tighter in the end customer market.
Fluctuation of electricity exchange prices will cause business risks in wholesale and retail sales
and also in electricity procurement. Helsingin Energia is prepared for risks and uses derivatives to
hedge procurement and sales.
The price development of fuels and emissions trading pose a profi tability risk relating to
increases in production costs. In addition, the availability of fuels is an uncertainty factor. The
power plant real estates have been insured by the Insurance Fund of the City of Helsinki and the
production of the power plants has been insured by taking out business interruption insurance.
Organisation and auditors
Seppo Ruohonen has acted as CEO of Helsingin Energia and Oy Mankala Ab, Risto Harjanne as
Managing Director of Helen Sähköverkko Oy, Lassi Metsälä as Managing Director of Mitox Oy,
Sami Aho as Managing Director of the Real Estate Company Helsingin Sähkötalo, and
Taisto Lehonmaa as Managing Director of Suomen Energia-Urakointi Oy.
Ernst & Young Julkispalvelut Oy, Authorised Public Accountants, have audited the consolidated
fi nancial statements of the Helen Group. Mikko Rytilahti, authorised public accountant, has acted
as the auditor with the main responsibility.
Outlook for 2011
The economic situation is strongly refl ected on the Helen Group’s operational plan. Finland’s
economic prospects are closely tied to general economic situation, and the uncertainty about the
economic recovery of the euro zone continues to pose signifi cant challenges for current fi nancial year.
Climate change mitigation is the greatest challenge in our operating environment, requiring
actions at all levels of the energy chain. The policies on increased utilisation of renewable energy
and use of carbon dioxide-free and low-emission energy sources will create signifi cant investment
needs in the next few years. As a result of the implementation of Helsingin Energia’s development
programme, the targets set for the year 2020 will be met and the preconditions for a carbon-neutral
future after the year 2030 will be created. Implementation of the development programme will
have a very negative impact on the profi t trend in future years.
Development of the electricity market and fuel prices, and anticipation of the cost effects of
emissions trading will pose many challenges. The total sales volume of electricity is expected to fall
below the 2010 level, whereas the volume of heat sales is expected to remain at the level of normal
year. The price of district heating will follow the price development of fuels, and the impact of
emissions trading has also been taken into account in pricing. The profi t level is forecast to fall
below the 2010 level.
Helsinki 15 February 2011
Seppo Ruohonen
CEO of Helsingin Energia
35 HELEN GROUP FINANCIAL STATEMENTS 2010
PROFIT AND LOSS ACCOUNT 1.1.–31.12. HELEN GROUP HELSINGIN ENERGIA 2010 2009 2010 2009 1,000 € 1,000 € 1,000 € 1,000 € NET TURNOVER 830,216 824,406 716,036 723,194
Variation in work in progress 241 -560 - - (incr) (decr)
Work performed by the undertaking for its own purpose and capitalized 4,722 3,755 3,897 2,931
Other operating income 12,625 6,813 18,025 15,138
Operating expenses
Raw materials and consumables
Fuel -262,521 -240,071 -262,521 -240,071
Energy, materials and consumables -68,191 -75,212 -59,748 -69,081
Variation in inventories 7,014 -14,552 6,843 -14,352 (incr) (decr) (incr) (decr)
External services -32,827 -26,914 -31,481 -29,806
Staff expenses -92,494 -93,054 -69,193 -69,500
Depreciation according to plan -71,631 -67,079 -47,371 -43,759
Depreciation in goodwill -3,068 -3,068 - -
Other operating charges -34,807 -33,443 -30,834 -29,030 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
OPERATING PROFIT 289,279 281,022 243,653 245,664
Financial income and expenses
Income from associated companies 14,165 9,643 - -
Dividend income - - 12,413 11,864
Other interest and fi nancial income 973 2,525 8,903 10,757
Interest and other fi nancial expenses -27,129 -29,783 -20,067 -21,378 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
PROFIT BEFORE APPROPRIATIONS AND TAXES 277,288 263,408 244,902 246,907
Change in depreciation reserve - - 2,668 2,890
Change in other reserves - - -207 -417
Income taxes -6,780 -4,657 - -
Return on equity capital -47,400 -47,429 -47,400 -47,429
Minority interests -224 -537 - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
PROFIT FOR THE FINANCIAL YEAR 222,884 210,785 199,963 201,951
36HELEN GROUP FINANCIAL STATEMENTS 2010
BALANCE SHEET HELEN GROUP HELSINGIN ENERGIA 2010 2009 2010 2009 1,000 € 1,000 € 1,000 € 1,000 €
ASSETS
NON-CURRENT ASSETS
Intangible assets
Intangible rights 45,874 33,882 45,575 33,495
Goodwill 27,556 30,762 - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
73,430 64,643 45,575 33,495
Tangible assets
Land and waters 27,630 27,630 - -
Buildings and constructions 150,990 157,699 85,929 91,356
Machinery and equipment 793,905 771,953 554,182 528,892
Advance payments and
construction in progress 62,091 41,905 39,449 27,651 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
1,034,616 999,187 679,560 647,899
Investments
Holdings in group undertakings - - 269,584 274,942
Investments in associated companies 110,991 105,534 128,205 128,205
Participating interests 134,439 126,560 21,282 20,646
Other shares and
similar rights of ownership 597 667 146,000 146,000 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
246,027 232,761 565,071 569,793
CURRENT ASSETS
Inventories
Fuel 62,766 56,042 62,776 56,042
Work in progress 892 961 - -
Other inventories 1,338 1,158 - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
64,996 58,161 62,776 56,042
Current receivables
Accounts receivable 54,963 49,661 55,706 51,327
Prepayments and accrued income 69,603 55,284 49,034 38,741
Other receivables 31,389 33,894 14,730 16,654 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
155,938 138,839 119,453 106,722
Cash in hand and at banks 67,089 111,629 28,101 75,664
TOTAL ASSETS 1,642,113 1,605,220 1,500,553 1,489,615
37 HELEN GROUP FINANCIAL STATEMENTS 2010
BALANCE SHEET HELEN GROUP HELSINGIN ENERGIA 2010 2009 2010 2009 1,000 € 1,000 € 1,000 € 1,000 €
EQUITY
CAPITAL AND RESERVESShare and basic capital 474,290 474,290 474,290 474,290
Revaluation reserve 59 59 - -
Other reserves 52,693 52,793 52,693 52,693
Retained earnings 281,516 270,257 311,355 309,404
Profi t for the fi nancial year 222,884 210,785 199,963 201,951 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
1,031,442 1,008,184 1,038,301 1,038,338
MINORITY INTERESTS 1,479 1,783 - -
APPROPRIATIONS
Depreciation reserve - - 49,647 52,315
Reserve for investment - - 95,300 95,300
Other untaxed reserves - - 1,171 964
PROVISIONS 8,404 8,491 8,404 8,491
LIABILITIESLong-term debts
Loans from credit institutions 150,708 198,549 - -
Loans from the city 181,979 190,389 181,979 190,389
Other interest-bearing liabilities 65,532 61,338 54 49
Deferred tax liabilities 4,666 3,158 - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
402,884 453,434 182,033 190,438
Current liabilities
Loans from credit institutions 45,045 5,336 - -
Loan instalments 8,409 19,274 8,409 19,274
Accounts payable 60,725 48,257 65,407 51,609
Deferred income and accrued liabilities 37,794 38,885 19,889 20,461
Other current liabilities 45,932 21,576 31,992 12,425 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
197,905 133,328 125,697 103,769
TOTAL EQUITY AND LIABILITIES 1,642,113 1,605,220 1,500,553 1,489,615
38HELEN GROUP FINANCIAL STATEMENTS 2010
CASH FLOW STATEMENT 1.1.–31.12. HELEN GROUP HELSINGIN ENERGIA 2010 2009 2010 2009 1,000 € 1,000 € 1,000 € 1,000 €
CASH FLOW FROM OPERATING ACTIVITIES
Income fi nancing
Operating profi t 289,279 281,022 243,653 245,664
Depreciations 74,699 70,147 47,371 43,759
Provision affecting operating profi t -17,383 -11,148 -88 -1,507
Financial income and expenses -11,991 -17,614 1,249 1,242
Return on equity capital -47,400 -47,429 -47,400 -47,429
Other corrections 4,163 -3,207 -10,865 -3,447 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Cash fl ow before change in working capital 291,367 278,185 233,920 238,282
Change in working capital Increase (-) or decrease (+) in inventories -6,836 15,693 -6,734 15,244
Increase (-) or decrease (+) in current receivables -17,115 -5,001 -2,453 1,415
Increase (+) or decrease (-) in current liabilities 37,240 4,618 21,821 -2,900
Income taxes -5,273 -3,156 - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
CASH FLOW FROM OPERATING ACTIVITIES (A) 299,383 290,339 246,554 252,041
CASH FLOW FROM INVESTING ACTIVITIES
Change in non-current assets -119,925 -120,229 -85,712 -89,807 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
CASH FLOW FROM INVESTING ACTIVITIES (B) -119,925 -120,229 -85,712 -89,807
CASH FLOW FROM FINANCING ACTIVITIES
Increase (+) or decrease (-) in current liabilities 28,844 55,910 - -
Change in long-term debts -52,058 36,279 -8,404 -19,270
Other changes in equity -200,784 -251,038 -200,000 -250,254 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
CASH FLOW FROM FINANCING ACTIVITIES (C) -223,998 -270,669 -208,404 -269,524
CHANGE IN CASH AND CASH EQUIVALENTS (A + B + C) -44,540 -100,559 -47,562 -107,290
Cash and cash equivalents at the beginning of the year 111,629 212,188 75,663 182,953Cash and cash equivalents at the end of the year 67,089 111,629 28,101 75,663 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
-44,540 -100,559 -47,562 -107,290
39 HELEN GROUP FINANCIAL STATEMENTS 2010
NOTES TO THE FINANCIAL STATEMENTS
Accounting principlesFinancial statements are prepared according to Finnish Accounting Standards.
Depreciation planDepreciation according to plan is calculated as straight-line depreciation on the original acquisition cost based on the useful economic life of the non-current assets.
Depreciation period, yearsResidential buildings 30–40Other buildings and constructions 20–40Network 15–40Production machinery and equipment 15–40Other machinery and equipment 3–10Intangible assets 3–5
HELEN GROUP HELSINGIN ENERGIA 2010 2009 2010 2009 1,000 € 1,000 € 1,000 € 1,000 €1. Net turnover
Electricity sales 390,301 380,542 390,301 380,542
Electricity transmission 110,430 98,473 - -
Heat 284,821 301,035 284,821 301,035
Other income 44,664 44,356 40,914 41,617 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Total € 830,216 824,406 716,036 723,194
2. Variation in work in progress 241 -560 - -
3. Work performed by the undertaking for its own purpose and capitalized 4,722 3,755 3,897 2,931
4. Other operating incomeRents 7,936 4,596 7,140 6,631
Capital gains 4,246 - 1,172 -
Emission allowances 443 713 443 713
Other income - 1,504 9,270 7,794 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Total € 12,625 6,813 18,025 15,138
5. Energy and fuelsElectricity supplied by group undertakings
and participating interests 39,357 36,336 39,357 36,336
Purchases of electricity 696 11,613 696 11,613
Purchases of heat 597 252 597 252
Purchases of fuels 262,521 240,071 262,521 240,071
Change in fuel inventories -6,843 14,352 -6,843 14,352
Other goods and materials 27,370 27,210 19,099 20,881 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Total € 323,698 329,834 315,427 323,505
6. External servicesBase network payments 10,317 9,496 - -
Other external services 22,510 17,418 31,481 29,806 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Total € 32,827 26,914 31,481 29,806
40HELEN GROUP FINANCIAL STATEMENTS 2010
HELEN GROUP HELSINGIN ENERGIA 2010 2009 2010 2009 1,000 € 1,000 € 1,000 € 1,000 €
7. StaffAverage number of personnel
Number of monthly salaried employees 1,415 1,428 969 971
Number of hourly waged employees 298 312 298 312 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Personnel 1,713 1,740 1,267 1,283
Wages and salaries 71,106 71,177 52,078 51,944
Pension expenses 18,061 17,722 14,863 14,527
Other personnel expenses 3,327 4,155 2,252 3,029 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Personnel expenses total € 92,494 93,054 69,193 69,500
Tax value of perks 155 151 150 151 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Total € 92,649 93,205 69,343 69,651
8. Other operating chargesChange in provision - -1,316 - -1,316
Purchase of emission allowances 1,199 2,059 1,199 2,059
Other expenses 33,608 32,700 29,635 28,286 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Total € 34,807 33,443 30,834 29,029
9. Financial income and expensesIncome from associated companies 14,165 9,643 - -
Dividend income - - 12,413 11,864
Other fi nancial income 973 2,525 8,903 10,757 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Financial income € 15,138 12,168 21,316 22,621
Interest expenses of the establishment loan 19,880 20,721 19,880 20,721
Other interest expenses to the city 106 604 106 604
Other interest expenses 7,143 8,458 81 53 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Financial expenses € 27,129 29,783 20,067 21,378
10. Decrease in depreciation reserveCovered with investment reserve € - - 2,668 2,890
11. Change in other reservesReserve for supporting renewable power sources - - 207 417
41 HELEN GROUP FINANCIAL STATEMENTS 2010
HELEN GROUP HELSINGIN ENERGIA 2010 2009 2010 2009 1,000 € 1,000 € 1,000 € 1,000 €
12. Non-current assets
Intangible assetsAcquisition cost 1 Jan. 61,818 55,217 60,023 54,055
Increases 1 Jan. - 31 Dec. 14,503 6,601 14,398 5,968Decreases 1 Jan. - 31 Dec. - - - -
Acquisition cost 31 Dec. 76,321 61,818 74,421 60,023Accumulated depreciation according to plan 1 Jan. 27,306 25,121 26,528 24,511Depreciation 1 Jan. - 31 Dec. 2,649 2,185 2,318 2,016Book Value 31 Dec. 46,366 34,512 45,575 33,495
Goodwill Acquisition cost 1 Jan. 53,215 53,215 - -
Increases 1 Jan. - 31 Dec. - - - -Decreases 1 Jan. - 31 Dec. - - - -
Acquisition cost 31 Dec. 53,215 53,215 - -Accumulated depreciation 1.1. 23,083 20,015 - -Depreciation 1 Jan. - 31 Dec. 3,068 3,068 - -Book Value 31 Dec. 27,064 30,132 - -
Land and waters Acquisition cost 1 Jan. 27,630 27,631 - -
Increases 1 Jan. - 31 Dec. - - - -Decreases 1 Jan. - 31 Dec. - 1 - -
Acquisition cost 31 Dec. 27,630 27,630 - -Book Value 31 Dec. 27,630 27,630 - -
Buildings and structures Acquisition cost 1 Jan. 310,078 295,272 233,544 223,144
Increases 1 Jan. - 31 Dec. 3,878 14,806 1,717 10,399Decreases 1 Jan. - 31 Dec. - - - -
Acquisition cost 31 Dec. 313,955 310,078 235,261 233,544Accumulated depreciation according to plan 1 Jan. 152,379 141,901 142,188 135,022Depreciation 1 Jan. - 31 Dec. 10,587 10,478 7,144 7,165Book Value 31 Dec. 150,990 157,699 85,929 91,356
Machinery and equipment Acquisition cost 1 Jan. 1,524,024 1,424,951 1,200,237 1,138,797
Increases 1 Jan. - 31 Dec. 84,023 103,293 65,232 63,360Connection fees 3,676 4,187 2,033 1,888Decreases 1 Jan. - 31 Dec. - 33 - 33
Acquisition cost 31 Dec. 1,604,371 1,524,024 1,263,436 1,200,236Accumulated depreciation according to plan 1 Jan. 752,071 697,654 671,344 636,767Depreciation 1 Jan. - 31 Dec. 58,395 54,416 37,910 34,577Book Value 31 Dec. 793,905 771,953 554,182 528,892
Advance payments and construction in progress Acquisition cost 1 Jan. 40,465 46,155 27,651 35,100
Increases 1 Jan. - 31 Dec. 25,539 35,143 14,337 19,945Decreases 1 Jan. - 31 Dec. 3,912 40,833 2,539 27,394
Acquisition cost 31 Dec. 62,091 40,465 39,449 27,651Book Value 31 Dec. 62,091 40,465 39,449 27,651
42HELEN GROUP FINANCIAL STATEMENTS 2010
Investments 31.12.2010 HELEN GROUP HELSINGIN ENERGIA Residence Amount Share- Book Amount Share- Book % value % value 1,000 € 1,000 €
Shares
Holdings in group undertakingsOy Mankala Ab Iitti - - - 42,500,262 100.00 158,617Helen Sähköverkko Oy Helsinki - - - 42,000 100.00 84,000Mitox Oy Helsinki - - - 520 100.00 1,560Kiinteistöosakeyhtiö
Helsingin Sähkötalo Oy Helsinki - - - 1,000,000 100.00 22,000Suomen Energia-Urakointi Oy Helsinki - - - 3,625 60.40 3,407
Investments in associated undertakingsVantaan Energia Oy Vantaa 684,363 40.00 109,592 684,363 40.00 127,305Finestlink Oy Helsinki 9,000 40.00 899 9,000 40.00 900Suomen Merituuli Oy Vaasa 500 50.00 500
Other sharesTeollisuuden Voima Oyj Helsinki 94,599,912 8.10 112,667EPV Energia Oy Vaasa 467,042 7.19 18,371 467,042 7.19 18,371Pohjolan Voima Oy Helsinki 286,791 0.82 1,216 286,791 0.82 1,216Kemijoki Oy Rovaniemi 22,982 0.94 1,075 22,982 0.94 1,075Asunto Oy Meri-Kamppi Helsinki 776 401 776 401Elisa Communications Oyj Helsinki 53,364 67 53,364 67Cleen Oy Helsinki 100 100 100 100POWEST Oy Helsinki 4,436 30 4,436 30Suomen Hyötytuuli Oy Pori 276 12.50 1,087Tunturituuli Oy Espoo 141 3.50 24 141 3.50 24Suomen Messut osuuskunta Helsinki 1 0 1 0
43 HELEN GROUP FINANCIAL STATEMENTS 2010
AUDITOR’S REPORT
We have audited the accounts, the fi nancial statements and the report of the Board of Directors of Helsingin Energia, which operates as a public corporation of the City of Helsinki, for the period from 1 January to 31 December 2010. The fi nancial statements comprise both the consolidated and the public corporation’s balance sheet, income statement, cash fl ow statement, and notes to the fi nancial statements.
CEO’s responsibilityThe CEO is responsible for the preparation of the fi nancial statements and the report of the Board of Directors and for the fact that they give a true and fair view in accordance with the regulations governing the preparation of fi nancial statements and the report of the Board of Directors in Finland.
Auditor’s responsibilitiesIt is our duty to issue a statement on the fi nancial statements, consolidated fi nancial statements and the report of the Board of Directors based on our audit. The Auditing Act requires that we follow the principles of professional ethics. Good auditing practice requires that we plan and perform the audit to obtain reasonable certainty as to whether the fi nancial statements and the report of the Board of Directors contain material misstatement.
An audit involves performing procedures to obtain audit evidence about the fi gures and other information presented in the fi nancial statements and the report of the Board of Directors.The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control that is relevant to the public corporation’s preparation of fi nancial statements and the Board of Directors’ report in such a way that they are correct and provide suffi cient information. The auditor makes an assessment of internal control in order to be able to design audit procedures that are appropriate in the circumstances, though not with the purpose of giving an opinion on the effi ciency of internal control in the public corporation. An audit also includes evaluating the appropriateness of the principles used in preparing the fi nancial statements and the reasonableness of the accounting estimates made by management as well as the overall presentation of the fi nancial statements and the report of the Board of Directors.
We believe that we have obtained audit evidence that is suffi cient and appropriate in order to provide a basis for our audit opinion.
OpinionIn our opinion, the fi nancial statements and the report of the Board of Directors give a true and fair view of the fi nancial performance and fi nancial position of the company in accordance with the regulations governing the preparation of the fi nancial statements and the report of the Board of Directors in Finland. The information in the report of the Board of Directors is consistent with the information in the fi nancial statements.
Helsinki, 15 February 2011
Ernst & Young Julkispalvelut OyChartered Public Finance Auditors
Mikko Rytilahti Chartered Public Finance Auditor, Authorised Public Accountant
44HELEN GROUP 2010
45 HELEN GROUP 2010
Helen Group’s Annual Report on the internet:
www.helen.fi
46HELEN GROUP FINANCIAL STATEMENTS 2010The Salmisaari power plants.
47 HELEN GROUP FINANCIAL STATEMENTS 2010