Components of electricity price
The price of electricity consists of three parts: the price of the electricity network service, the price of electrical energy and taxes. In most cases, each part accounts for approximately one-third of the total price of electricity. The shares may vary, depending on the location where electricity is used and the consumption volume.
The network service includes the delivery of electricity to a consumer’s home and the maintenance of electricity networks. You cannot shop around for a cheaper price of the network service.
Electrical energy is the electricity you consume, which you buy from an electricity provider. The electrical energy charge consists of a fixed monthly basic charge and a consumption charge that depends on how much electricity you have used. There is only one consumption charge for general electricity (given as cents per kWh), regardless of the time of day or season, while there is a different consumption charge for energy at night and during the day in the case of time-based electricity pricing and a different consumption charge for electricity in the winter and at other times of the year in the case of season-based electricity pricing.
In addition to the price for electrical energy and the network service, you will also pay value added tax, electricity tax (which is invoiced in connection with the network service charge) and a strategic stockpile fee in your electricity bill.
Electricity network service charge
The electricity network service includes the delivery of electricity to a consumer’s home and the maintenance of electricity networks. An electricity network service charge is a payment that the owner of the electricity network collects to be able to maintain and develop the network.
The place where the electricity is used determines from which network operator’s network the electricity comes. You cannot switch network operators, i.e. shop around for a cheaper price of the network service. The electricity network charge (incl. tax) usually accounts for approximately half of the total electricity cost.
As customers cannot shop around for a cheaper price of the network service, the Energy Authority monitors the network service prices every four years to ensure that they remain reasonable. A price ceiling for network service charges has been specified. A network operator cannot increase the network charge by more than 15 per cent when compared to the charges collected during the preceding period of 12 months.
Shopping around for cheaper electricity
Start the process by comparing electricity providers and their products at www.sahkonhinta.fi. You only need to know the postal code of the location where you use electricity. You can see your annual consumption volume on your electricity bill, but you can also assess your consumption using the examples available on the website.
Select the best electricity provider. Contact them or fill out an electricity contract order form on their website.
The electricity provider will handle the termination of your old contract. If you are moving, the electricity provider will also handle the electricity transmission contract with the network operator.