The NESA’s 2023 Annual Review: “a year of challenges and successes”

The operations of the National Emergency Supply Agency (NESA) in 2023 were characterised by preparation for instability in the security environment and the possibility of broad-spectrum influencing both in Finland and internationally. Operating in accordance with its new organisation model, the NESA adopted a risk-based operating model in security of supply operations and further increased cooperation with security authorities. Furthermore, the NESA continued to invest a great deal of resources in developing network cooperation in collaboration with the National Emergency Supply Organisation (NESO) and promoted the protection of critical sites in particular.

CEO of the National Emergency Supply Agency Janne Känkänen sums up 2023 as “a year of challenges and successes.”Right at the beginning of the year, the NESA organised a seminar in celebration of its 30th anniversary, the main theme of which was the impact of the changed global situation on Finland’s security of supply and preparedness. In his speech at the anniversary seminar, Känkänen emphasised that security of supply must be seen as complementary and an essential partner to military preparedness. The NESA continued to emphasise this sentiment in its Government Programme objectives during the parliamentary election in April and agrees with the Programme of Prime Minister Petteri Orpo’s Government formed in June that security of supply is the foundation of society’s comprehensive security.

Protection of critical infrastructure increasingly important

The NESA is the authority responsible for security of gas supply in Finland. When the Balticconnector gas pipeline between Finland and Estonia was damaged in October 2023, the NESA, together with security authorities, participated in the management of the situation, the provision of up-to-date information and in ensuring the supply of gas. The NESA also urged companies critical to security of supply to raise their preparedness levels, especially at critical infrastructure sites. The Annual Review provides a more detailed account of the events that took place during this period and how the supply of gas was successfully secured in spite of the challenging circumstances. Key factors behind this success included cooperation between the private sector and public authorities and the Inkoo LNG terminal, which has proved to be an important preparedness measure.

Another notable measure contributing to long-term preparedness was the reservation of the Meri-Pori coal power plant for use in the event of severe disruptions and emergencies. The Annual Review describes what the three-year agreement between the NESA and Fortum means in practice and in what kind of circumstances the power plant can be started up to support the production of electricity in Finland.

Extensive international cooperation continues

The NESA continued to maintain its international relations in a systematic and sustained manner. The changed security situation has increased international cooperation especially between NATO, the European Union and the Nordic countries. Also notable are the rescEU stockpile projects granted to Finland and funded by the EU Commission, the implementation of which the NESA is participating in together with the Ministry of the Interior, the Ministry of Social Affairs and Health, the Finnish Institute for Health and Welfare and the Radiation and Nuclear Safety Authority. The Finnish security of supply model attracts interest around the world, with frequent visits from Europe, Asia and the United States continuing throughout the year, adding to the international recognition of the NESA.

The financial year was a testament to the variety of threats and risks

The Annual Review presents the most important key figures on security of supply. The 2023 financial year shows that preparedness for various threats and risks has increased as a result of rapid changes in the security environment. For example, emergency stockpiling has been strengthened as part of ensuring security of supply. In 2023, the direct costs of stockpiling alone totalled EUR 40.9 million, whereas in the previous year the costs were only EUR 29.3 million.

Revenue from the strategic stockpile fee continued to decrease from the previous year, totalling EUR 37.7 million (EUR 40.3 million in 2022).

In 2023, the NESA’s turnover was EUR 59.6 million (EUR 222.8 million in 2022), which consisted of energy product exchanges. Other operating income, including costs reimbursed to the NESA for specific tasks, increased by EUR 21.9 million from the previous year.

The NESA’s balance sheet total decreased from the previous year to EUR 2.1 billion. In early 2023, a government plenary session authorised the gratuitous transfer of some of the NESA’s shares in Fingrid Oyj to the state. Due to the resulting capital loss, the result of the financial period was negative at -EUR 166.3 million (-EUR 46.9 million in 2022).

The Finnish Government confirmed the NESA’s financial statements for 2023 on 11 April 2024.

The Annual Review is available on the NESA’s Finnish-language website under the ‘Julkaisut’ section (in Finnish).