Case Company: Turku Energia

Presenting the project results at Turku Energia 5.12.2014

Basic facts:

Turku Energia is a power supplier company based in Turku, Finland. The company has a long history dating back to 1898 and has been active under a few different names since then, until it received its current name Oy Turku Energia – Åbo Energi Ab. In its early years, the company provided the German AEG with electricity until the plant was municipalized in 1917. It was then part of the municipal institutions before it was incorporated in 1995.

Who are the customers?

Turku Energia provides services in distribution and sale of electricity, as well as construction, maintenance and development of power plants and distribution networks. These services are offered to companies, communities and private customers alike with emphasis on customer-orientation and sustainable development. In fact, the percentage of energy generated from renewable resource is constantly increased to ensure sustainable, trend conscious and profitable business in the long run.

The company also sees competitive energy prices, competent personnel and service reliability as some of their key strengths in the field.

The industry of electricity:

The generation and distribution of electricity is strongly affected by a natural monopoly in Finland, due to high starting costs of new enterprises, as well as the economies of scale that can be achieved through the agreed division of regions for smaller electricity suppliers. In fact, there are around 80 local electricity distributors that are responsible for the supply of electricity in their respective regions.

In addition, Turku Energia contractor services conducts the construction and maintenance of power lines and outdoor lighting networks in the city of Turku. These contractor services are a department of Turku Energia group that altogether consists of five departments specialized in the following fields: heat, electricity sales, electricity networks, customer service and contractor services. All of the deparments work in co-operation and they each compliment the natural development of Turku Energia in the industry.

Competitors of Turku Energia:

As mentioned earlier, especially electricity is strongly guided by a natural monopoly that roughly define and divide the local customers in question to their respective power suppliers in that region. These competitors may also be engaged in other operations such as district heating distribution. However, many of these companies may also be smaller enterprises that only consider electricity distribution their main business.

However, larger groups such as Fortum and Helsingin Energia may be potential competitors especially when securing non-regional deals or contracts with private companies. After all a number of these not only offer elecricity and heat distribution, but maintenance and construction services just like Turku Energia.

How does Turku Energia contribute to the circular economy?

The company constantly strives to find new renewable energy sources to harness in its everyday operations. These include, but are not limited to CO2 free sources, such as waste heat and water, as well as wood. The current goal and vision of the company is to generate at least 50 % of its electricity and heat production from renewable sources by 2020. Currently the respective figures are at 25 % for district heating (2013) and 29,1 % for electricity (2013).

Steps already taken towards a greener future:

The green steps include integrating renewable energy sources into their production of electricity and heat. In addition, the qualitative and environmental aspects as well as the safety management system of Turku Energia have been certified by Inspecta. This is meant to boost and ensure the importance of corporate responsibility e.g. concerning waste management systems, carbon emissions etc. By raporting and providing open information about its projects, Turku Energia shows a clear interest in developing a sustainable future in the power supply field.

Electricity distribution for consumers:

The company offers simple, greener and greener electricity for its consumer at competitive prices. Turku Energia also pays considerable attention to providing their customers with consistent and high quality services so that the events of power breaks or other issues could be minimized. This is seen as a key aspect of a successful and reliable power supplier – consumer relationship.

Written by Thomas