Development trends in the restructuring of the electricity distribution business in Finland

This paper focuses on the restructuring process of electricity distribution business that is currently taking place in many countries, including Finland. The driving forces of the process include, for instance, the regulatory reforms of the sector and the efficiency incentives set by the regulators, the owners´ increased profit expectations, technological developments, and the legislative requirements concerning the unbundling of electricity distribution from other electricity businesses. Outsourcing of services might provide a feasible solution for surviving in the changing business environment. This paper analyses the impacts that outsourcing has on the business processes of distribution companies. A practical example of an outsourcing case involving a medium-sized distribution company Graninge Kainuu and an international service provider Eltel Networks Corp. is presented in detail in the paper.