JE Group's Social Responsibility Report (2014)

www.jyvaskylanenergia.fi

JYVÄSKYLÄ ENERGY GROUP

Social Responsibility Report 2014

The primary task of Jyväskylä Energy Group is to provide wellbeing by offering

smart solutions for energy and water production, distribution and use.

4 Jyväskylä Energy Group | www.jyvaskylanenergia.fi

Righttemperature

year round

Easyeveryday

life

Fresh&

Pure


WE EMPLOY 242 PEOPLE (2014)

1,000Our whole supply chain employs

approximately 1,000 person-years a year.

XIn addition, cooperation with us provides tens of millions of euros for Finnish companies, transport entrepreneurs and machine entrepreneurs.


JYVÄSKYLÄ ENERGY OVER THE YEARSThe streets of Jyväskylä lit by

electric street lights, 19 October 1902

Jyväskylä City Council establishes municipal

electricity works23 April 1902

1902 1960

District heatproducitonwith wood

chips begins

1995

Jyväskylän Energian-

tuotanto Ltd established

Biogas combustion to produce heat

begins

Water business (Jyväskylän vesi) becomes part of

JE Group

Inauguration of the Keljonlahti

power plant

Jyväskylän Voima's investment in coal

equipment completed


tuotanto Ltd's 100%

ownership to JE Group

JE-Urakointi Ltd’s business sold to

JyNet Urakointi Ltd

1997 1999

JyväskyläEnergy

becomes a limited-

liability company

JE-Urakointi

Ltd

established

2003 2006 2009 2010 2012 2013

Electricity generation begins with wood at

the Lutakko electricity plant

District heating accumulator is

completed

JE-Transmission Ltd &

Jyväskylän Voima Ltd

established


JYVÄSKYLÄ ENERGY LTDheat, electricity and water

100%

JyväskylänVoima Ltd

100% 100% 81,4%*

* Changed 10/2012

Ilovirta Ltd

100%**

** Changed 10/2015

JE-Transmission

Ltd

JyväskylänEnergian-

tuotanto Ltd

KS Energiavälitys Ltd

C-Ella Ltd

Suomen Hyötytuuli Ltd

Other holdings

33.3%

12.5%

44.7%

Liikennevirta Ltd10 %

COMPANY OWNERSHIP STRUCTURE

CITY OF JYVÄSKYLÄ

Subsidiaries


OUR ORGANISATION

Customer

Customer accounts Networks Energy production Group services

CEO Tuomo Kantola

Board of directors, chair Markku Aarnos


OUR ANNUAL PRODUCTION

1%of all electricity in Finland

1.1TWh of heat

Wood

Peat

Coal

Oil

Biogas


OUR ANNUAL PRODUCTION

7.4 Mm3

Invoiced waterRetail sale of electricity 829 GWh

Wholesale of electricity 626 GWh

Transmitted electricity 660 GWh

Heat sales 1,024 GWh


TURNOVER OF GROUP COMPANIES 2014 (€M)

183.4Jyväskylä

Energy

62.2JyväskylänEnergian-tuotanto

20.0Jyväskylän

Voima

18.7JE-

Transmission


TURNOVER AND RESULT 1999–2014

183.4

-10.2-50

0

50

100

150

200

250

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Turnover €M Result before provisions and taxes €M


SALES TREND IN 1991–2014 (GWh)

1024

829

626660

0

200

400

600

800

1000

1200

1400

1600

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Heat sales Retail sales of electricity Wholesale of electricity Electricity transmission

* Own production sold to the Power Exchange since 2012

SOCIAL RESPONSIBILITY IN JE GROUP 2014


QUALITY AND ENVIRONMENTAL CERTIFICATES SINCE 2000

ISO 14001ISO 9001


OUR ENVIRONMENTAL TARGETS

• Reduce harmful environmental impacts of our own operations

• Manage environmental impacts of energyproduction

• Improve environmental expertise

• Promote sensible energy use amongstakeholders and cooperation witheducational establishments

• Open communication


KEY FIGURES OF JE GROUPFinancial responsibility

2014 2013 2012 2011 2010

Turnover (€M) 183.4 195 202.7 185 167.4

Operating profit (€M) 8.7 6.2 16.3 11.9 17.6

Income tax (€M) 1.03 0 0.07 0 0.03

Dividend (€M) 0 0 0 0 0

Owner's interest expense (€M) 13.1 16.5 16.5 16.7 16.8

Investments (€M) 29.9 37.9 32.6 31.9 40.8

Return on equity (%) neg neg neg neg neg

Equity ratio (%) 6.3 8.4 1.1 3.0 4.4

Wages and salaries1) (€M) 13.3 13.1 12.7 17.5 17.4

Purchases from suppliers (€M) 138 139 140 122 103

Support for associations (€M) 0.008 0.008 0.005 0.01 0.01

1) The wage and salary costs include capitalised wages and salaries


KEY FIGURES OF JE GROUPEnvironmental responsibility

2014 2013 2012 2011 2010

Share of green electricity of electricity sold (%) 32 2.3 4.5 4.4 4.0

Network losses, electricity (%) 2.5 2.7 2.7 2.7 2.7

Network losses, district heat (%) 8.6 7.1 8.4 8.4 8.5

Make-up water in district heating (m3) 9,960 3,673 10,311 6,861 8,158

Consumption of pumping electricity (MWh) 8,531 8,395 9,057 7,906 8,626

Leakage water in the mains water network (million m3) 0.9 1.00 0.93 1.11 1.01

Waste water leaks into waterways (m3) 248 874 2,995 2,980 183

Rainwater / run-off rainwater / melting ice leaks into the sewerage system (million m3) 4.2 5.8 4.9 4.3 3.69

Waste water leak percentage of the total waste water volume 0.002% 0.006% 0.023% 0.025% 0.002%

Repaired leaks in the water mains (qty) 31 42 26 32 41


KEY FIGURES OF JE GROUPSocial responsibility

2014 2013 2012 2011 2010

Employees

Average number of employees 1) 246 243 243 378 385

of which those on fixed-term contracts 19 16 16 31 29

Average age of employees 44 43.6 44.4 45.6 45.2

Absence due to sickness (%) 2.2 2.7 2.3 2.6 3.6

Customers

Electricity transmission, SAIDI 2) (h/customer) 0.25 0.1 0.13 0.057 0.12

Electricity transmission, SAIFI 3) (qty/customer) 0.58 0.32 0.29 0.12 0.57

Outage time for the customer: district heat (h) 1.08 1.28 0.70 1.00 0.72

1) Due to the sale of JE-Urakointi Ltd’s business on 1 March 2012, JE Group had 235 employees at the end of 20122) SAIDI = total average interruption duration h/customer3) SAIFI = average number of interruption per customer


SALES TREND

829626 660

1024

0

200

400

600

800

1,000

1,200

1,400

1,600

GWh

2009

2010

2011

2012

2013

2014

7.47.5

6.8

7.2

7.6

8

8.4

Invoiced water (million m³) Invoiced waste water(millionm³)

Million m3

2009 2010 2011 2012 2013 2014


SALES TREND

60.7

38.2

30.311.935.76.7

0

50

100

150

200

250

2008 2009 2010 2011 2012 2013 2014

€M Other sales

Water sales (water + wastewater)Electricity transmission

Wholesale of electricity *

Retail sale of electricity

* Since 2012, JE Group's own production has been sold to the Power Exchange


INVESTMENTS BY BUSINESS AREA

0

50

100

150

200

250

2008 2009 2010 2011 2012 2013 2014

€M

Group, other

Energy production

Water network

District heatingnetwork

37.9 29.9

191.0

65.832.629.437.0


ENERGY EFFICIENCY• Jyväskylä Energy Ltd and JE-Transmission Ltd signed the energy efficiency agreement in

business and industry and joined the energy services action plan in December 2007.

• JE and JE-Transmission Ltd are committed to continuous improvement of energy efficiency in electricity and district heat distribution, separate heat production and other operations whenever it is economically feasible, taking safety and environmental aspects into account.

• Water business is not part of the energy services action plan, but it was included in energy efficiency operations in 2010.

• Energy saving means preventing or reducing energy consumption that would otherwise take place without the measures. Energy efficiency plans are aimed at customers, as well as the energy use of JE and JE-Transmission Ltd.

• The measures carried out are reported annually to Motiva.


DISTRICT HEATING KEY FIGURES

* The figures include the figures for the Jyväskylä region main network

2014 2013 2012 2011 2010

Building volume with district heating (million m3) 26.7 26.3 25.9 25.6 24.8

Number of district heating customers 4,640 4,535 4,390 4,284 4,099

Length of the district heating network (km) 435 428 414 411 391

Heat sales (GWh) 1,024 1,063 1,129 1,013 1,190

Heat procurement 1,114 1,137 1,233 1,106 1,301

Volume of leakage water in the district heating network (m3) 9,960 3,673 10,311 6,861 8,158

Volume of water in the district heating network (m3) 23,754 23,650 22,910 22,200 22,600

Consumption of pumping electricity in the district heating network (MWh) 8,531 8,395 9,057 7,906 8,626



11141024

0

200

400

600

800

1000

1200

1400

GWh

Heat procurement Heat sales

22.6

23.524.2

24.825.6

25.9

20

21

22

23

24

25

26

2007 2008 2009 2010 2011 2012 2013 2014

Millionm3

Building volume with district heating

26.3 26.9



329 352 374 391 411 414 428 435

0

50

100

150

200

250

300

350

400

450

500

Km

Length of the district heating network



11,894

10,800

8,533 8,6267,906

9,0578,395 8,531

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2007 2008 2009 2010 2011 2012 2013 2014

MWh

Consumption of pumping electricity inthe district heating network

10,317

6,522

9,475

8,158

6,861

10,311

3,673

9,960

0

2,000

4,000

6,000

8,000

10,000

12,000

2007 2008 2009 2010 2011 2012 2013 2014

m3

Volume of leakage water in thedistrict heating network


WATER PROCUREMENT AND SUPPLY 2014

29%

45 %

14%

Water procurement

Viitaniemi

Vuontee

Pekonniemi

Korpilahti

Muurame

Palokka

Vesanka

Tikkakoski

Janakka

Laukaa

98.1 %

Water supply

City of Jyväskylä

Lievestuore (Laukaa)


VOLUME OF LEAKAGE WATER

11.3 %0.002 %

35.8 %

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Leakage water percentage for themains water network

Waste water leaks intowaterways (percentage of waste

water)

Leakage water into the sewagesystem (percentage of waste

water)

2009

2010

2011

2012

2013

2014


WASTEWATER TREATMENT

• A limited company owned by the City of Jyväskylä and the municipalities of Laukaa and Muurame. The City of Jyväskylä's holding is 87%.

• The waste water treatment plants are located in Nenäinniemi and Korpilahti.

• The Nenäinniemi waste water treatment plant is in charge of treating waste water from the City of Jyväskylä and the municipalities of Laukaa, Muurame and Uurainen.

• The Nenäinniemi plant purifies the wastewater of about 150,000 inhabitants, as well as those of the industrial enterprises operating in the region. The Nenäinniemi waste water treatment plant also receives sludge from the septic tanks and cesspools of residential properties.

• The Korpilahti waste water treatment plant treats the waste water of the Korpilahti region.

• Jyväskylä Energy Ltd. purchases Korpilahti’s wastewater treatment service from JS-Puhdistamo Ltd Jyväskylä Energy Ltd and the municipal water supply and waste water treatment plants are jointly responsible for the sewage systems.

JS-Puhdistamo Ltd


WASTE WATER TREATMENT Nenäinniemi waste water treatment plant, volume of incoming water


WASTE WATER TREATMENT Nenäinniemi waste water treatment plant, efficiency of phosphorus removal

Required removal efficiency%


WASTE WATER TREATMENT Nenäinniemi waste water treatment plant, BOD7,ATU removal efficiency

%

Required removal efficiency


WASTE WATER TREATMENT Nenäinniemi waste water treatment plant, phosphorus content of outgoing water

Maximum permitted concentration


WASTE WATER TREATMENT Nenäinniemi waste water treatment plant, BOD7,ATUcontent of outgoing waterThe oxygen-consuming organic constituent (BOD7) contained in waste water that puts a strain on the receiving water system and the maximum concentrations set for the parameter in question in the environmental permit.

Maximum permitted concentration


ORIGIN OF ELECTRICITY SOLD IN 2014

44,2 %

9,4 %

46,4 %

Whole of Finland

Peat and other fossil fuels

Renewable energy sources

Nuclear power

47,5 %

35,9 %

16,6 %

Jyväskylä Energy

Source: Finnish Energy Industries (Electricity procurement by energy source 2014)


ELECTRICITY TRANSMISSION KEY FIGURES

660

1,318

0

200

400

600

800

1,000

1,200

1,400

1,600

2007 2008 2009 2010 2011 2012 2013 2014

Electricity transmission (GWh)

Length of the electricity network (km)


ELECTRICITY TRANSMISSION KEY FIGURES

139

15 12 10 12 10

12

95 8

6 5 7

0

5

10

15

20

25

30

2008 2009 2010 2011 2012 2013 2014

Permanent interruptions requiringconnection (qty)

Short interruptions (qty)

22

15

11 11 11

1517

4 4 3 2 3 2

8

0

5

10

15

20

25

2008 2009 2010 2011 2012 2013 2014

New distribution substations connected to thenetwork (qty)

Modernisation of distribution substations (qty)


OUR ENVIRONMENTALLY FRIENDLYENERGY PRODUCTION• Finland’s energy production is based on coal, oil,

nuclear power, hydropower, natural gas, wind power, peat and wood.

• Jyväskylä Energy Group aims to produce energy in as environmentally friendly a manner as possible, mainly with wood and peat sourced from the province.

• The advantages of our fuel selection include renewability and local origin of raw materials.

• Biogas combustion into district heat at the Mustankorkea waste treatment centre began in 2003.

• 100% of the power plants’ ashes were utilised e.g. as forest fertilisers and in earthwork.

• We invest in energy saving e.g. by developing heat storage and providing advice on energy saving. We are committed to the promotion of sustainable energy use by having signed the energy efficiency agreement in business and industry.

• In accordance with our certified system, we meet the standards and provisions issued by the authorities and environmental legislation.

• The possibilities and feasibility of solar energy production were assessed as part of the Jyväskylän Kangas project.

• Jyväskylä Energy is taking part in Suomen Hyötytuuli Oy's two new wind farm projects.


RAUHALAHTI POWER PLANT• Fuels:

• peat• industrial by-products:

• sawdust

• bark• forest fuels:

• logging residues

• stumps• coal and oil

• Electric/thermal/steam output: 85/140/65 MW

• Efficiency 73%

• Energy availability 100%

• Year of commissioning 1986


KELJONLAHTI POWER PLANT• Main fuels: peat and wood

• Supporting fuel: coal

• Two operating principles:

• Combined heat and power production (CHP)

• Condensate electricity production

• The ways of running the plant can be regulated steplessly

• Boiler power 495 MW

• Energy availability 100%, efficiency 72%

• Electricity output

• in condensate use is max. 215 MW

• in combined heat and power production the maximum district heat output is 260 MW withelectric power output of 163 MW


OPERATING DIAGRAM OF THE POWER PLANT


OUR PRODUCTION USES ANNUALLY

1,000 X

35,000 full trailer loads of fuel

EUR 3–4 MILLION IN FUEL TAX

=


ENERGY PRODUCTION 2014

36%

52%

12%

0%

Fuel distribution in electricity production

Peat

Wood

Coal

Oil

38%

44%

15%

2% 1%

Fuel distribution in district heat production

Peat

Wood

Coal

Oil

Biogas


USE OF FUELS 2014

Peat Wood Coal Oil Biogas Total

JYT/JE 396 410 0 49 20 875

JVO 562 886 257 6 0 1,710

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

GWh

* Jyväskylän Voima Ltd’s (JVO) entire fuel use is included in the figures. Jyväskylä Energy Ltd’s holding in Jyväskylän Voima Ltd is 81.4%


USE OF FUELS 1986–2014

* Jyväskylän Voima Ltd’s entire fuel use is included in the figures. Jyväskylä Energy Ltd’s holding in Jyväskylän Voima Ltd is 81.4%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

GWh

Peat Coal Oil Wood, industry by-products Wood, forest fuels Recovered fuel Field biomass


EMISSIONS INTO THE AIR FROM ENERGY PRODUCTION 2014

339407

746

355 339

694

159

303

462

13 10 230

100

200

300

400

500

600

700

800

JYT JVO Yht.

Sulphur dioxide (t) Nitrogen dioxide (t)

Carbon dioxide (1,000 t) Particulate matter (t)

* Jyväskylän Voima Ltd’s all emissions into the air are included in the figures. Jyväskylä Energy Ltd’s holding in Jyväskylän Voima Ltd is 81.4%


NITROGEN OXIDE (NOX), SULPHUR DIOXIDE (SO2) AND PARTICULATE MATTER EMISSIONS 2014

0

500

1000

1500

2000

2500

2006 2007 2008 2009 2010 2011 2012 2013 2014

SO₂ (t/a) NOₓ (t/a) DUST (t/a) Production (GWh/a)

* Jyväskylän Voima Ltd’s all emissions are included in the figures. Jyväskylä Energy Ltd’s holding in Jyväskylän Voima Ltd is81.4%

The volume of JE Group’s energy production has increased with the commissioning of the Keljonlahti

power plant in 2010, but the amount of emissions and their amount per megawatt hour has

fallen since the commissioning of the Keljonlahti power plant. Thegraph shows this change well,

when 2012 is compared to 2006–2009.


CARBON DIOXIDE EMISSIONS 2006–2014

* All of Jyväskylän Voima Ltd’s emissions are included in the figures. Jyväskylä Energy Ltd’s holding in Jyväskylän Voima Ltd is81.4%

0

200

400

600

800

1000

1200

2006 2007 2008 2009 2010 2011 2012 2013 2014

CO₂ (t/a)

1,000

CO2 (1,000 t/a)

CO₂ emissions have decreased

considerably as the share of wood in the

power plants' fuel consumption has

increased.


ASHES FROM POWER PLANTSPower plant ashes sent to landfill

In 2014, almost 100%

of ashes were utilised

* All of Jyväskylän Voima Ltd’s ashes are included in the figures. Jyväskylä Energy Ltd’s holding in Jyväskylän Voima Ltd is 81.4%

0

5

10

15

20

25

30

35

40

2009 2010 2011 2012 2013 2014

Million kg


EMPLOYEES

0

50

100

150

200

250

300

350

400

450

Change in the number of employees

JYT

JVO

JEU

JES

JEJE JES JVO JYT Total

Women 58 3 0 0 61

Men 86 19 37 46 188

0

50

100

150

200

250

300

Employees by company

All JE-Urakointi Ltd employees were transferred to Jynet Oy in an acquisition on 1 March 2012.At the end of 2014, JE Group had 242 employees, of whom 183 were men and 59 women.


EMPLOYEESAverage number of employees 2014 2013 2012 2011

Permanent/fixed-term Total




Jyväskylä Energy Ltd 125/19 144 122/14 136 125/13 138 119/8 127

JE-Urakointi Ltd - - - - - - 122/13 135

JE-Transmission Ltd 19/3 22 19/2 21 19/1 20 21/0 21

Jyväskylän Voima Ltd 37/0 37 38/1 39 37/1 38 38/6 44

Jyväskylän Energiantuotanto Ltd 44/2 46 48/2 50 46/1 47 47/4 51

Group total 225/24 249 227/19 246 227/16 243 347/31 378

• The number of employees refers to their average number during 2014.• At the end of 2014, JE Group had 242 employees, of whom 222 were permanent and 20 fixed-term employees.• All JE-Urakointi Ltd employees were transferred to Jynet Oy in an acquisition on 1 March 2012.


EMPLOYEES 2014

1) Occupational accidents that have caused at least one day of incapacity to the Group’s own employees (NB! The reporting method has changed since 2010).

2) The number of occupational accidents per million hours worked.

Group JE JES JVO JYT

Average age of employees 44.0 41.9 44.4 43.8 45.8

Average length of service 12 11 16 5 16

Absence due to sickness, calendar days/person 6 8 2 4 8

Absence due to sickness (%) 2.2 3.2 0.7 1.4 3.3

of which caused by occupational accidents (%) 2.7 1.6 0.3 0 0.8

Number of occupational accidents 1)4 2 1 0 1

Lost Time Incidence Figure (LTIF) 2)9.8 8.6 27.9 0 13.1


PRODUCT RESPONSIBILITY / INTERRUPTIONS

0.88

1.33

0.27

0.72

1

0.7

1.28

1.08

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

2007 2008 2009 2010 2011 2012 2013 2014

District heat

Interruption time for the customer (h)

0.25

0.58

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

2007 2008 2009 2010 2011 2012 2013 2014

Electricity

SAIDI (h/customer) SAIFI (qty/customer)

SAIDI = total average interruption duration h/customer. SAIFI = average number of interruptions per customer


JE GROUP'S YEAR 2014

• The use of wood reached a record-high level of 50.5 % of the fuel flow of our power plants. The use of wood will increase in accordance with the company’s strategy.

• Carbon dioxide emissions fell due to the increased share of wood fuel.

• 100 % of ashes were utilised.

• The shortage of fuel in previous financial periods was resolved once the coal equipment in Keljonlahti was completed, and wood and coal procurement increased at the same time.

• For the first time in history, investments of EUR 14.7 million in water networks and water supply in 2014 have been financed with cash flows from operations.

• Price of district heat is on the average level among the ten largest cities.

• Decreased use of oil and increased combined heat and power production capacity have lowered the variable costs of energy production.

• One of the development projects was to improve the telephone service, which succeeded in shortening response times considerably.

• Customer service was also improved by adopting a newinterruption announcement system for all business areas(electricity, heat, water).

• Jyväskylä Energy also took part in the Jyväskylä Housing Fair, developing and showcasing smart buildingtechnology.

The plus points



• The warm weather impaired the sales and result of Jyväskylä Energy Group in the heat sales, electricity sales, electricity transmission and electricity production business areas. The market price of electricity was so low for most part of the year that condensate electricity generation was not feasible.

• When the utilisation rates of power plants remain low, their efficiency also decreases, which increases production costs.

• The production output was also reduced by unexpected production outages. The most significant was a steam pipe leak in the Keljonlahti boiler in May and a fault in the generator stator in October.

• Coal procurement for Keljonlahti had problems with transport and unloading, resulting in additional costs.

• The warm weather decreased district heat sales volumes further, by approximately 4 % compared to 2013 and 9 % to 2012, even though the building volume connected to district heating increased.

• Fuel stocks grew and exceeded the target level considerably.

The minus points


JE GROUP'S YEAR 2014 • The Group’s losses for the financial period totalled €10.8 M.

Compared to the previous year, the result improved by €0.6 M. The group’s operating profit stood at €48.6 M. €12.5 M of interest was entered as income for the owner.

• The Group’s equity ratio has improved due to the owner’s investment in an unrestricted equity fund, but it is still weak. Another reason for concern is the large amount of liabilities in relation to turnover and profitability.

• The Group’s significant investments in energy production capacity in recent years have increased the amount of depreciation, leasing costs and interest expenses, which will continue to burden the company's profits for years. The Group's ability to generate profits will be meagre during the next few years.

• The combination of warm weather and low electricity market prices will make it difficult to reach a positive result for an estimated 1–2 financial years.

Jyväskylä Energy 2014 2013 2012 2011 2010

Turnover (€M) 183,367 195,038 202,733 185,000 199,638

Operating profit (€k) 8,716 6,168 16,273 11,900 21,988

Operating profit (%) 4.8 3.2 8.0 6.2 11.0

Return on equity (%) neg neg neg neg 10.2

Equity ratio (%) 6.3 8.4 1.1 3.0 8.6



• Again the use of wood reached a new record-high level of 50.5% of the fuel flow. If economically feasible, increasingthe share of wood will be technically possible in thefuture.

• In February, the board decided to invest in flue gas scrubbing equipment at the Rauhalahti power plant due to the requirements of the Industrial Emissions Directive (IED). A decision was made to renew the plant in other ways at the same time so that the plant’s use can continueuntil 2030 at the least.

• During the financial period, we continued to make investments in the Group’s comprehensive and systematic risk management, particularly in the management of foreseeable risks, as part of the strategic and operational management of business operations.

• Electric vehicle charging operator Liikennevirta Ltd's operations were launched in cooperation with the other shareholders.

• The possibilities and feasibility of solar energy production were assessed as part of the Jyväskylän Kangas project.

• Jyväskylä Energy is taking part in Suomen Hyötytuuli Ltd'stwo new wind farm projects.


JE-TRANSMISSION LTD'S YEAR 2014• An amendment to the Electricity Market Act entered into force in

September the previous year. JE-Transmission Ltd applied for a new network licence as required by the Act towards the end of 2013.

• Measures to develop operations and customer services required by the Act and measures to develop the company's communications were carried out during the year.

• The most important individual renovation of the electricity network was replacing the Savela switching substation with a new switching substation.

• Changes to network required by the construction of the new central hospital have been carried out for a couple of years already, and the need for investments will continue until the project is completed.

• The distribution network was built in different parts of the distribution region. The most significant new construction sites were Kangas, Kivelänranta and Sääksvuori.

• With the replacement investments made in 2014, 9% of all medium-voltage overhead power lines were replaced with underground cables.

• In 2014, JE-Transmission Ltd renewed the remote use system related to the supervision of the state of the network and adopted a mobile condition inspection system in the distribution network.

• JE-Transmission Ltd is taking part in a voluntary energy services action plan aiming to decrease network losses by the end of 2016.

• JE-Transmission Ltd has taken part in the funding of the Finnish Electricity Research Pool coordinated by Finnish Energy Industries. Since the beginning of 2010, it has also been involved in the Elvari project coordinated by Motiva Ltd, aimed at improving the efficiency of electric heating.


JE-TRANSMISSION LTD'S YEAR 2014• The third regulatory period of four years (2012–2015) is underway in the

electricity network operations supervision by the authorities. JE-Transmission Ltd received the decision concerning the previous regulatory period, the second regulatory period (2008–2011), in March 2014. JE-Transmission Ltd lodged an appeal with the Market Court against the decision. The matter will be processed by the Market Court in 2015. JE-Transmission Ltd has complied with the decision concerning the second regulatory period, thereby not collecting basic fees for electricity transfer for two summer months.

• During the financial year, JE-Transmission Ltd received the Energy Market Authority's decision on the first regulatory period (2005–2007) concerning the handling of excess earnings for the period in question.

• The sale of electricity distribution services declined by about 0.24% on the previous year as a result of the warm end of the year and the general economic situation.

• In all, the sale of transmitted energy decreased by 0.16%. The number of new properties connected to the network also decreased by approximately 15%.

JE-Transmission Ltd 2014 2013 2012 2011 2010

Turnover (€M) 18,745 17,495 20,535 19,087 15,802

Operating profit (€k) 256 738 1,248 314 1,369


Equity ratio (%) 12.2 16.0 16.4 18.2 28.3


JYVÄSKYLÄN VOIMA LTD'S YEAR 2014• The availability of our production machinery was 72% in the financial

period.

• The Keljonlahti power plant was operated mainly for backpressure production, because the low market price of electricity reduced condensate electricity production throughout the year and electricity generation remained low due to equipment malfunctions and breakdowns in the autumn.

• From January to late May, the plant operated normally according to shareholders’ orders, but was stopped about a week before the planned revision due to a boiler leak.

• The plant started up in late July after the revision. In August the plant wasrunning at limited power due to turbine vibrations. In September, the plant was down due to turbine alignment for three weeks.

• On 25 October, an earth fault took place in the generator stator, and the plant only produced heat in reduction operation until the end of the year as the repairs to the generator continued until 1 February 2015.

• After the completion of the installation of the sulphur feed system in 2014, the plant will be able to burn wood up to a share of 70% of fuel.

Jyväskylän Voima Ltd 2014 2013 2012 2011 2010

Turnover (€M) 47.7 56.3 47.7 66.3 38.6


Equity ratio (%) 13.9 13.3 13.9 14.0 14.4

* Jyväskylä Energy Ltd’s holding in Jyväskylän Voima Ltd is 81.4%


JYVÄSKYLÄN ENERGIANTUOTANTO LTD'S YEAR 2014 • The availability of our production machinery was excellent (100%)

during the financial period.

• The Rauhalahti power plant underwent a revision during April. Production remained at approximately 80% of budgeted output owing to the mild temperatures.

• The plant is undergoing a major project to decrease emissions from the combined production boiler to meet the limits set by the IED as of 2020. The EUR 30 million investment will extend the plant's service life to 2030.

• Due to amendments to environmental protection regulations, the company is planning investments to be made by 2018 in e.g. oil fuel handling and storage areas and fuel changes.

• The Rauhalahti power plant, Savela power plant and Varikko heating plant are involved in the transitional national plan (TNP) to allocate the investments required by the IED to 2016–2020.


tuotanto Ltd 2014 2013 2012 2011 2010

Turnover (€M) 35.6 38.1 35.6 30.7 39.7


Equity ratio (%) 26 26 26 32 33

THANK YOU!

JE Group's Social Responsibility Report (2014)

Business

Transcript of JE Group's Social Responsibility Report (2014)