Summary

Economy

Result in line with estimates

The result for 2005 was in line with estimates and remained at a good level. The profit trend was influenced by the mild weather, sharp increases in fuel costs, and emission allowances trading that started at the beginning of the financial year and essentially diminished the profitability of separate electricity generation.

Investments totalled EUR 95 million (EUR 115 million in 2004). The greatest single investment was the Katri Vala heat pump plant, which will produce 90 MW of district heat and 60 MW of district cooling in summer 2006, when the plant will commence commercial operation.

A total of 5,224 GWh of electricity was sold to enterprises and households in different parts of Finland. The corresponding sales volume in the previous year was 5,614 GWh. The fall in the sales volume was mainly due to a decrease in electricity sales to companies.

The decreases in the turnover and profit of HelenNetwork were due to new distribution prices, which became effective at the beginning of April, and which, as a rule, reduced customers’ electricity bills in all customer groups. Although the financial year was clearly warmer than normal, the annual increase in consumption was 1.7%, which is in line with the normal level. The total electricity consumption in Helsinki was 4,442 GWh. At the end of the year, HelenNetwork had 327,486 consumption sites and 28,901 customer connections.

In the Helsinki distribution area, water-based district heat sales totalled 6,519 GWh. In addition, a total of 50 GWh of heat was sold to the cities of Espoo and Vantaa. District heat sales fell by 1.3% from the previous year, because the year 2005 was milder than average. At the end of the financial year, Helsinki Energy had 12,800 district heat customers.

Total sales of district cooling doubled from the previous year, amounting to 18 GWh.

ENVIRONMENT

Emissions continued to diminish – environmental impacts have become stabilised

As regards energy production, the good air quality level reached in Helsinki due to the expansion of district heating, technical means of restricting emissions, and wide introduction of natural gas, continued to prevail. Helsinki Energy’s carbon dioxide emissions decreased by a fifth (19%) from 2004. The specific emissions of the energy sold decreased by more than 10%, to the level of 260 g CO2/kWh.The significant decrease in the specific emissions of carbon dioxide is due to the fact that energy production has considerably increased from 1990 and, as regards emissions, the produced kilowatt-hours are by far cleaner than before.

In comparison with the preceding year, the acidifying emissions of sulphur dioxide and nitrogen oxide diminished considerably: sulphur dioxide by 40% and nitrogen oxides by 20%. Specific emissions diminished as well, due to proportional increase in the share of emission-free energy production and the extremely good functioning of the separating equipment at the plants in Helsinki region.

INTEREST GROUPS

Sustainable development and interaction as starting points

The first volume of the book series on energy supply areas, Hundred Years of Energy Construction in Helsinki, was published in November. The book series dedicated to Helsinki Energy’s essential buildings will be completed for the company’s centenary in 2009.

A total of 9,970 customers visited the premises of the Energy Centre specialising in advice on the sensible use of domestic electric appliances and energy. The Energy Centre is located in Helsinki Energy’s Main Building in the Kamppi area. The number of e-mail inquiries increased considerably from the previous year.

Helsinki Energy was involved as a partner in the work of the organisation of the Sponsors of Finnish Children’s Clinics, and in the work of the project Life is the Best Drug, which combats drug abuse. The company also continued to support young sportsmen and sportswomen. Significant co-operation that was started several decades ago between Helsinki Energy and entrepreneurs in the centre of Helsinki continued in the implementation of Christmas lighting on the street Aleksanterinkatu.