Teollisuuden Voima Oyj together with its subsidiary forms the TVO Group. The ultimate parent of the Group is Teollisuuden Voima Oyj, domiciled in Helsinki.
The Company owns and operates two nuclear power plant units (OL1 and OL2) and has a third unit (OL3) under construction at Olkiluoto in the municipality of Eurajoki. In addition to the nuclear power plant in Olkiluoto, TVO has a share in the Meri-Pori coal-fired power plant and in a gas turbine plant. Fortum will be entitled to use TVO's share of the Meri-Pori capacity as of the beginning of 2019, and TVO will relinquish its share in Meri-Pori in full in the beginning of July 2020.
Copies of the consolidated financial statements are available at the internet address www.tvo.fi.
These consolidated financial statements were authorized for issue by the Board of Directors of TVO in its meeting on 27 February 2019. Under the Finnish Limited Liability Companies Act the Shareholders' meeting may modify or reject the financial statements.
TVO's cost-price principle
TVO is a public limited liability company owned by Finnish industrial and energy companies. Under its Articles of Association, TVO supplies electricity to its shareholders at cost (so-called Mankala principle), which means that it delivers the electricity it has produced or procured to its shareholders in proportion to their shareholdings in each series. Each of the shareholders of each series bears their share of the variable and fixed annual costs as specified in detail in the Articles of Association.
In accordance with TVO's Articles of Association, each shareholder of each series is responsible for the following variable annual costs of the Company allocated to the series in proportion it has consumed the electricity generated or transferred by the Company:
- Acquisition, transport, transportation insurance, storage and handling costs of fuel;
- Taxes depending on the power production, and
- Other costs incurred to the company directly depending on the power volume used by the respective shareholder.
In accordance with TVO's Articles of Association each shareholder of each series, irrespective of whether or not it has used its share of electricity, is responsible for the following fixed annual costs of the Company in proportion of the number of shares in particular series it holds:
- Normal operating, maintenance and administrative costs;
- Other taxes than those depending on the power production;
- Insurance costs;
- Installments and interest payments on the loans of the company falling due annually in accordance with the loan agreements of the company as well as other expenses resulting from the financing of the company or the arranging thereof;
- Depreciations;
- Costs set out in the Nuclear Energy Act incurred by the Company's nuclear waste management (concerning the nuclear power plants), and
- Other costs independent of power production related to the Company's normal business and included in the budget or approved by the Board of Directors.
In accordance with TVO's Articles of Association, each shareholder's
share of the liability for the annual costs will always be limited to
the amount corresponding to the proportion of its shareholding to all
shares belonging to the same series, and another shareholder's failure
will not increase the shareholder's liability based on shareholding.
Only the Company will have the sole right to call upon the
responsibility of the shareholders defined in the Articles of
Association. The shareholders shall not be liable for costs other than
the costs of the Company mentioned above, unless otherwise agreed.
A prerequisite to the shareholder's right to receive electricity is that it has paid its share of costs on time. If a shareholder neglects to observe its payment obligation, the Company will have the right to immediately cut off the distribution of electricity to the shareholder and to sell the shareholder's portion of electricity to a party submitting the best offer, primarily to another shareholder of the Company.
The cost-price principle is described in detail in the Articles of Association.
