Economic responsibility contains within it both the sustainability of operations and the economic effects of our actions on others. EPV Energy’s financial responsibility means careful planning of finances and monitoring economic developments. We anticipate factors that may affect our activities in the future and strive to take their effects on our finances into account in both the short and long term.
Successful operating activities have positive effects for society as a whole, and especially for the company’s stakeholders, such as:
- shareholders
- employees
- subcontractors
The effects of well-considered and successful operating activities can be seen in the form of:
- new jobs
- investments
- tax revenue
EPV’s financial success creates the prerequisites for fulfilling the company’s social and ecological responsibilities.
Competitive electricity and heat for our shareholders
We, as a company, do not strive for profit with our operations. EPV Energy’s most crucial task is to ensure that the electricity and heat supplied to our shareholders remains competitive. This requires the continuous follow-up of our operating environment and influencing the development of existing production resources. Additionally, the company maintains and develops our readiness to make new investments as the operating environment evolves.
Continuous risk management
EPV implements its comprehensive risk management activities by applying the SFS-ISO 31000 standard and by following the risk management policy approved by the Board of Directors. Risk management is an integral part of EPV’s management system.
In the spring of 2020, EPV started a more comprehensive assessment of risks, during which risk descriptions and assessment criteria were more closely defined. A wide group of employees from different business units were involved in the process. The way of presenting the risk report was also renewed, and EPV shifted to applying a risk management process that is based on the SFS-ISO 31000 risk management standard.
Comprehensive risk management:
- ensures business continuity
- helps us to prepare for unexpected events
- seeks to minimise economic losses
- improves our ability to assess the company’s competitiveness
- ensures a safe working environment
Financial responsibility includes the important task of recognising potential financial risks resulting from changes in the operating environment.
EPV updated its policy on competition law
EPV Energy recognises the competition between companies and the protection of the competitive process as the foundation of economic well-being. One of EPV’s strategic goals is the reliability and good value of the company’s power generation. One of the company’s most important goals is for the company’s operations to meet all the requirements of competition legislation.
In 2020, EPV updated its policy on competition law and the updated version was approved by EPV’s Board. Competition legislation regulates companies’ activities in the market and seeks to ensure that they do not create artificial restrictions on the smooth functioning of the markets. The objectives of competitive legislation includes, for example, protecting free price determination, meaning that the transaction price realised in the market is determined on the basis of free supply and demand, without any measures that are contrary to fair business practice. Competition that is free from restrictions and markets that operate ethically are the cornerstones of the market economy and economic well-being, and these are what competition legislation seeks to protect.
EPV invests in the environment and in the future
Our main task is to ensure our capacity for responsible energy generation and to maintain a competitive production cost price.
The energy sector is Finland’s most capital-intensive business sector. Power plants and transmission networks tie up a large amount of capital over the course of decades. We plan our investments with great care. We model future investment needs and strive to fund them in such a way that our reliability and equity ratio remain desirable.
DIRECT FINANCIAL IMPACTS in 2020:
- Purchases: MEUR 233.4
- Pay and other compensation to employees: MEUR 8.2
- Taxes and social expenses: MEUR 1.6
- Real estate taxes in their entirety: MEUR 1.6
- Net financing costs: MEUR 5.0
- Investments: MEUR 80
- Loan repayments to investors: MEUR -25.9
