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Funding and legislation

The expenses resulting from maintaining the security of supply are financed centrally by the Security of Supply Fund. This fund is outside the State budget and managed by the National Emergency Supply Agency.

The Fund covers the expenses arising from security stockpiling, technical emergency schemes and readiness planning.

A security of supply fee is levied in conjunction with energy taxes. The amount is approximately half a per cent of retail prices. The annual yield of the fee is 50 million euro, a sum which is credited to the Security of Supply Fund.

NESA applies business management principles to security stockpiling and endeavours to profit from the price fluctuations of various materials. It's basic function is to keep goods in stock to meet the needs which come up during crisis situations. Therefore NESA is not a business enterprise.

The objective of the Act on Safeguarding Security of Supply (Statute Book of Finland nr 1390/1992) is to safeguard the economic activities necessary for maintaining the population's livelihood, the national economy, and the national defence, i.e. security of supply.

In times of serious disturbances and in emergency situations, public authorities need special powers to safeguard society's essential activities. The most important provisions are contained in the Readiness Act (Statute Book of Finland nr 1080/1991).