Caruna sale offered Finland a lesson, says minister

The sale of electricity grid company Caruna has provided a stark lesson for Finland, according to Minister for Nordic Cooperation and Ownership Steering Joakim Strand. He emphasized that any future sales of state-owned companies must be considered with extreme caution.

Caruna, Finland's largest electricity network company serving 1.5 million people, was largely sold to foreign investors by the state-controlled energy firm Fortum in 2014. This move sparked public outcry as electricity transmission prices increased, and profits began to flow overseas. Caruna has justified these price hikes by citing the need for grid repairs.

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Hopefully, Case Caruna serves as a reminder and a lesson to everyone that all possible sales of state-owned companies must be considered very, very carefully

Recently, Spanish energy company Iberdrola announced its intention to purchase 80 percent of Caruna's shares from Canadian and U.S. investment firms for two billion euros. Minister Strand acknowledged that selling the grids a decade ago might not have been the wisest decision. He expressed belief that a strong European energy company would be a better owner than international funds.

Strand highlighted the current government's ownership policy principles, which prioritize security of supply, safety, and risk management. He did not directly comment on proposals suggesting the state should explore regaining majority Finnish ownership of Caruna's grids, especially as new ownership changes are underway. The feasibility of such a move remains unclear, with some politicians advocating for eventual public ownership of all electricity grid companies.

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Of course, today it is easy to state that the sale of the grids in the last decade was not the world's smartest move