Dynamic-price contracts held by more than one third of households – fixed-term contracts still the most common type in 2024
In 2024, shares of different type of electricity retail contracts changed very little from 2023. The share of dynamic-price contracts rose slightly, the number of open-ended contracts fell modestly, and the share of fixed-term contracts remained unchanged.
At the end of 2024 dynamic-price contracts accounted for about 33 per cent of all contracts. The share grew by two percentage points from the previous year, indicating that the rapid increase has now levelled off. As recently as 2021 the share was below ten per cent, meaning it tripled in two years. Now that the rapid growth has levelled off, dynamic-price electricity contracts have secured a firm place among consumers’ contract choices. Under such contracts the customer bears the risk of price fluctuations, but if they can shift consumption to cheaper hours the contract is usually the least-cost option.
Fixed-term contracts made up roughly 45 per cent of all contracts, the same as in 2023. The share is still lower than in 2021, when it was about 54 per cent. Their popularity held steady even though market prices stabilised after the high levels of 2023. For many consumers a stable price remains an important factor when choosing a new contract.
The share of open-ended contracts fell to about 22 per cent in 2024. In ten years the share has dropped sharply: in 2015 it was nearly 58 per cent. The decline has continued every year and has been particularly rapid in recent years, as consumers increasingly opt for fixed-term or dynamic-price contracts.
Contract type | 2021 | 2022 | 2023 | 2024 |
Fixed-term | 54% | 50% | 45% | 45% |
Open-ended | 37% | 36% | 24% | 22% |
Dynamic price | 9% | 14% | 31% | 33% |
In 2024 the range of contract types widened. Hybrid products combine, for example, a dynamic-price component with a fixed-price component in the same contract. The market also offers open-ended dynamic-price contracts in which the customer can lock in the energy price for a limited period, such as the winter months. The broader selection gives consumers more choice between price predictability and market linkage.
More small-scale generation connected to the grid
About 15 per cent of households switched electricity supplier last year. Switching activity has remained at the same level for several years. Small and medium enterprises switched more actively than the year before, lifting the overall switching rate to 14.8 per cent.
Last year, 101,600 households had already connected their own small-scale generation to the electricity grid — an increase of 10.7 percentage points from the previous year. Including small and medium enterprises, the number of small-scale generators increased by 11.5 percentage points. Small-scale generation capacity grew by 18.6 per cent to just over 1 200 MW, the majority being rooftop solar panels.
There were 280 energy communities in distribution grids at the end of 2024, comprising a total of 3 300 individual metering points. The number of energy communities—such as housing companies with shared solar panels—was monitored last year for the first time.
At the end of last year 49 electricity suppliers operated in Finland’s retail market; five companies exited during the year and one new supplier entered. Six suppliers each held more than a five-per-cent market share, and the three largest together served 46 per cent of customers. Electricity was supplied to a total of 3.7 million small customers, of whom 3.3 million were households.
Further key figures are available in the Energy Authority’s newly published report “National Report on the Electricity and Gas Markets 2024”. Submitted to the European Commission and the Agency for the Cooperation of Energy Regulators (ACER), the report provides the annual overview of electricity and gas market developments, the state of security of supply and the effectiveness of the Energy Authority’s supervisory work.
National Report on the Electricity and Gas Markets 2024 (pdf)
Further information: Economist Jonatan Kanervo, tel. +358 29 5050 069 and Trainee Aino Ylänne, tel. +358 29 5050 080. E-mail: [email protected].