Changing electricity provider
When your fixed-term contract expires or you move to a new home, you will need a new electricity contract. You must conclude the new contract at the latest two weeks before the date on which you want the contract to start. During this 14-day period, the new electricity provider will cancel your previous contract and conclude an electricity transmission contract for the new home on your behalf.
Even if you have an electricity contract valid until further notice, it is worth shopping around for a cheaper price regularly.
Sahkonhinta.fi service
We recommend that you compare offers of electricity contracts in the sahkonhinta.fi service maintained by the Energy Authority. The service contains all electricity offers valid in your area. To compare prices, you will need the following information:
- A postal code
- An estimate of your annual electricity consumption. For example, you can find this information in your latest electricity bill.
The service lists the offers that match your search criteria in the order of their costs. On the search results page, you can filter the offers according to such criteria as how the electricity is generated and how consumption is metered (general electricity, seasonal rate, time-based rate).
Always read the terms and conditions carefully before concluding an electricity contract. In addition to the product information shown in the sahkonhinta.fi service, check the electricity supplier’s website for any additional information.
To conclude an electricity contract, go to the electricity provider’s online service or contact the provider’s customer service. Please note that you cannot conclude an electricity contract directly in the sahkonhinta.fi service.
Tip: You can compare electricity price offers and enter into a new contract even before your selected contract start date. The price levels of electricity offers vary depending on such factors as the production situation and the season. There are differences between providers in how long in advance they are willing to make offers and conclude contracts.
Electricity contract types
The most suitable type of electricity contract for your household depends on how much and when you use electricity and how accurately you would like to know the amount of your electricity bill in advance.
- How much electricity you consume: if your home has electric heating, your usage will be high, and you should think about timing your consumption and select your electricity contract with particular care.
- How you consume electricity: when does your household typically use electricity, and can you time some of your consumption according to an hourly price? Do you perhaps have systems that can control consumption automatically?
- Which payment method is suitable for you: would you like to know the price level of your electricity bill in advance and avoid major price fluctuations from month to month? Or are you aiming for the most affordable total price and can accept even major price changes?
Contract duration
Two types of contracts are offered to households: fixed-term contracts and those valid until further notice.
Contracts valid until further notice apply from the time they are concluded until they are cancelled. The provider may adjust the terms and prices of their contracts by giving one month’s notice to the consumer.
Fixed-term contracts contain an agreement on electricity supply for a predetermined period that is binding on both the buyer and the seller. The most common contract period is one or two years.
The risk involved in fixed-term contracts is smaller than in contracts valid until further notice, as their prices and terms remain the same throughout the contract period. On the other hand, the price you pay will not drop even if market prices fall after you have concluded the contract.
Pricing model
In terms of their pricing models, there are three types of contracts: fixed-price, spot-priced and hybrid contracts.
In a fixed-price contract, the price is agreed on in advance, and it will not change during the contract period. Fixed-price contracts are suitable for those who wish to know the price they will pay for their electricity with certainty, or who are unable to shift their consumption to less expensive hours.
A spot-priced contract contains an agreement on the supply of electricity, but the price is based on a variable factor, such as the price of electricity in the power exchange. This means that you will not know the total amount of your electricity bill as you conclude the contract. Spot-priced contracts, such as market-price ones, are best suited for consumers who accept even large fluctuations in electricity prices and are able to time their consumption to inexpensive hours of the day. Consequently, the consumer bears the risk of price fluctuations but is also able to take advantage of the cheapest spot prices. While these contracts may end up much cheaper than others, their prices can also go up faster than in other contracts if the market price increases.
Hybrid contracts are a combination of the other two types: they consist of a pre-agreed fixed portion and a portion that varies according to your consumption. In hybrid contracts, the electricity price consists of a basic charge, a fixed kWh price and a consumption impact. The consumption impact is determined monthly based on hourly spot prices during the hours in which the customer uses electricity. Demand response contracts are suited for consumers who want to take advantage of the cheapest spot prices while also hedging against the highest spikes in exchange price fluctuations.