Electricity contract means a contract for the supply of electricity to a selected point of use (i.e. address). The electricity contract defines who has ordered the electricity, where the electricity will be used, how much the electricity will cost and the duration of the contract.
Electricity transmission and electricity tax are billed separately by the local grid company and are not affected by the electricity contract. The electricity contract is therefore only an agreement on the supply of electricity and the price to be charged for electricity.
In mainland Finland, you can order an electricity contract from any company selling electricity in Finland. Electricity prices can therefore be compared between all electricity companies operating in Finland, which makes it easy to tender for electricity.
Which electricity contract should you choose?
When choosing an electricity contract, the first thing you usually look at is the price of electricity. However, the final electricity price is calculated using a different formula depending on the type of electricity contract, which may seem confusing to the uninitiated.
In practice, when choosing an electricity contract, you should consider the following:
- Electricity price
- Pricing and price stability
- Share of the basic contribution
- Period of validity
The easiest way to find a new and cheapest electricity contract for your own use is to use our comparison engine. To the comparison engine just need to report estimated annual electricity consumption, then the machine automatically calculates the estimated annual cost and arranges electricity contracts from cheapest to most expensive - regardless of the contract pricing method.
The comparison table also allows you to order a new electricity contract with just a few clicks.
How to order a new electricity contract?
It takes just a few minutes to order a new electricity contract via our website. Depending on the electricity company, you can either order your contract via our own order form on our website, or you will be redirected via links to order your contract on the electricity company's own website.
The details of the contract ordered through our order form are automatically transmitted to the electricity company.
However, when it comes to ordering an electricity contract, whether you are moving to a new home and the status of your current electricity contract will make a difference.
When you are changing electricity company
If you are changing electricity company but not moving, check the type of your old contract before ordering a new one. If your current contract is for a fixed term, you cannot change electricity company in the middle of the contract period without incurring a penalty. In this situation, you will therefore have to wait until the fixed-term contract is about to expire before you can change your electricity company. Alternatively, you will have to pay an extra fee for terminating the contract.
If your current contract is for an indefinite period, you can change your contract and order a new one with 14 days' notice. The new contract can therefore start at the earliest 15 days after the date of order.
When you change your electricity contract, you can in practice always authorise the new electricity company to terminate the old contract on your behalf. This is usually explained on the order form when you order the new contract. If there is no specific mention of termination, your new electricity company will normally terminate the old contract on your behalf.
When you are moving
When you move, you can usually choose to start a new electricity contract in a few days, so you don't necessarily have to wait for the normal notice period. This is because the new electricity contract is concluded at a different address at the time of the move.
However, you should sign a new electricity contract well in advance of your move, as last-minute connections can mean extra charges. Also, through our website, we cannot guarantee that the electricity contract will take effect on the same or the next day - the minimum time from order to contract start is usually five days.
Sometimes it is possible to get a new electricity contract in place immediately, but in some cases it can take a few days to connect to the grid. It is also possible to have the electricity connected on a fast-track basis if you are in a hurry, but many providers charge extra for this service.
When moving to a new home, you can cancel your fixed-term electricity contract at no extra cost. In fact, moving house is the only situation where a fixed-term contract can be terminated free of charge.
When you need electricity immediately
If you have moved or are moving to a new home and need to have your electricity contract in place immediately (same or next day), we have found that the easiest way to do this is with Fortum. With Fortum, you can quickly sign a contract online and, in the best case, the electricity will be connected to your home within a couple of hours of ordering.
Read more: Electricity contract immediately
Different pricing methods for electricity contracts
Electricity pricing varies according to the type of contract, and the type of contract that is cheapest for private use depends on the type of dwelling. Certain electricity contracts - such as exchange-traded electricity - also carry risks associated with price fluctuations, which you should be aware of before you sign up. In this section, we look at the most common types of electricity contracts and their pros and cons.
Fixed-price package electricity contract
A fixed-price electricity contract is an easy and worry-free choice and the simplest form of pricing. As the name suggests, the contract is a fixed monthly price and the package includes a certain amount of electricity consumption (kWh) per month. Any excess is charged according to the electricity company's tariff.
Fixed-price contracts are often a good option when electricity consumption is steady and the amount of consumption is fairly predictable. This is often the case in apartment buildings, where a package-price contract is often the right choice.
In a fixed contract, an additional charge is paid if the electricity consumption exceeds the monthly usage cap of the package. As with universal electricity contracts, the amount of the surcharge is charged in cents per kilowatt hour (snt/kWh).
On the product pages of our website, you can see how much you will be charged for the excess for each package contract.
Universal electricity is the most popular type of electricity contract. It is also the next simplest contract in terms of pricing, right after the fixed contract.
In the case of universal electricity, you pay a price for electricity based on consumption (snt/kWh) and - depending on the contract - a basic monthly charge. In all contracts there is no basic charge at all, so the price is based on the consumption of electricity 100%.
Universal electricity is often the cheapest for apartment buildings
Monthly free universal electricity contract without a basic fee is often the most affordable option for apartment dwellers. In many cases, the electricity consumption in a block of flats is so low that most of the electricity bill is made up of the basic charge instead of the electricity component.
Therefore, when purchasing an electricity contract for a low consumption household, the first thing to look at is the proportion of the contract's basic tariff rather than the price of electricity.
The annual price for universal electricity is calculated as follows:
[electricity consumption] * [kWh price of electricity] + (12*[fixed monthly fee])
Example: 2000 kWh per year for an apartment block. Electricity price 5,09 c/kwh, basic fee 2 €/month.
Annual price: 2000 kWh * 0.059 €/kWh + (12 months * 2 €) = 142 €
However, when comparing electricity contracts, you don't have to calculate and compare the prices of different electricity contracts manually. Our comparison engine automatically calculates the annual price estimates for different electricity contracts, making the comparison quick and easy.
For night-time electricity, the price of electricity varies depending on the time of day. Electricity is cheaper at night and more expensive during the day. In the case of electricity bought by the electricity companies, the price of electricity from the exchange varies according to the time of day, which means that customers can also be offered electricity at different prices.
In practice, night-time electricity is not a sensible choice for many apartment dwellers - except for those who use more electricity at night than during the day.
However, night-time electricity can bring savings to the owner of an electrically heated detached house, who can take advantage of the lower price of night-time electricity by optimising the heating for the night.
Seasonal electricity has seasonal pricing. There are usually two different prices for seasonal electricity: the summer price and the winter price. Winter electricity is more expensive, due to the higher prices of electricity on the electricity exchanges in winter.
Market priced electricity
Market priced electricity is a type of contract where the price of electricity is determined by the Spot price on the Nord Pool power exchange (snt / kwh). In the case of exchange electricity, the electricity is paid at a spot price depending on consumption, a margin from the electricity company and, depending on the contract, a fixed monthly fee.
Because of the fixed monthly fee, electricity from the exchange is often not the optimal choice for a small apartment. The advantage of exchange electricity is that electricity is always available at the current market price.
Exchange electricity usually cheapest in the long term
The price paid for electricity in exchange-traded electricity has been shown to be cheaper over time than any other type of electricity contract. In a stock exchange contract electricity price can vary a lot depending on the year, the season and the time of day, which can even make the choice to buy electricity from the exchange seem like a scary one.
Concrete examples of the risks of fluctuations in the price of electricity from exchanges were seen in autumn 2021, when the price of electricity from exchanges peaked at almost 35 cents.
In a high-consumption household, electricity bills can vary quite a lot between months with exchange electricity, which is why a user of this type of contract should have sufficient reserves so that fluctuations are not immediately felt in their own household.
While exchange-traded electricity may seem an uncertain and unpredictable choice, it has so far been the cheapest type of contract in the long term.
In the case of electricity from the exchange, the price paid for electricity should not usually be compared between months, but should be viewed over a period of 1-2 years, for example. In the long term, prices tend to level off, so that short-term fluctuations do not confuse the averages.
Predictability of electricity on exchanges difficult
Calculating the price of electricity on an annual basis for exchange electricity is more difficult than for general electricity, because the price of electricity is calculated according to the spot price, which varies from moment to moment. Therefore, to calculate an accurate price, it would be necessary to know the spot price for each hour of the year and the electricity consumption for each hour of the year.
Our comparison table the calculator calculates the estimated annual cost based on historical average realised prices, so variable consumption and spot prices are not taken into account. As a result, the actual price may differ somewhat from the estimate, for example if more electricity is used at different times of the year or day.
Validity of the electricity contract
In addition to pricing, there are differences in the duration of electricity contracts. In practice, there are two categories of duration: fixed-term and open-ended contracts.
A fixed-term electricity contract is valid for a fixed period, usually 12 or 24 months. Other lengths are sometimes shown in comparisons - such as 3 months or 36 months.
However, a fixed-term electricity contract cannot bind the customer for longer than 24 months.The 36-month contract can therefore be terminated by the customer after 24 months, but the electricity company cannot terminate the contract before the 36-month limit.
A fixed-term contract of a maximum of 24 months can only be terminated by the customer if they move house, or in some cases for an additional fee.
Ensure the price stability of your fixed-term contract before ordering
Fixed-term contract the price is often the same throughout the contract period, and electricity companies often offer fixed-term contracts at a lower price than open-ended contracts.
However, in some fixed-term electricity contracts, the price may change during the contract period. Some electricity companies market fixed-term electricity contracts where the low promotional price is only valid for the first month or months. These electricity contracts are often misleading for customers - the price may seem really cheap, but can become much more expensive in the middle of the contract period.
This is not illegal on the part of the electricity companies, because the price change is mentioned in the contract terms. It is therefore worth looking carefully at the terms of the contract before ordering a fixed-term contract.
Agreement for the time being
Electricity contract for an indefinite period is valid for an indefinite period, as its name implies, and may be terminated at any time by giving 14 days' notice. An open-ended contract therefore allows you to compete for electricity contracts and change contracts almost as often as you like.
However, the price of open-ended electricity contracts is usually more expensive than that of fixed-term contracts.
When you subscribe to an electricity contract, you can choose how the energy is produced. Electricity is produced in many different ways in Finland, and there are differences between them, for example in terms of emissions.
In our comparison, you can filter contracts by type of electricity generation. For many contracts, it is also possible to select a specific production method at an additional cost. For example, if you want, you can select only wind power for your contract.
In Finland, energy is still produced using forms of production that are not optimal in terms of emissions. By choosing an electricity contract that uses environmentally friendly energy, you are playing your part in shaping the way electricity is produced in Finland in the future.
The most suitable electricity contract for different types of housing
The same electricity contract is not always the most suitable for all sites. For example, the best electricity contract for a low-electricity apartment is usually not the same type as for an electrically heated detached house.
In a detached house, the decisive factor is how the house is heated. For an electrically heated detached house where night-time electricity is possible, the most suitable electricity contract is often exchange electricity. Exchange electricity is usually the cheapest contract in the long term. However, the price of electricity can fluctuate a lot with exchange contracts, so you should be prepared for fluctuations in the size of your electricity bill.
In a block of flats, grid electricity may not be the best choice, as in most cases electricity consumption cannot be optimised - except by reversing your own sleep rhythm. In addition, exchange-traded electricity contracts usually come with a fixed monthly fee of a few euros, which means that it is not usually the cheapest option for a flat in a block of flats where electricity consumption is low.
In most apartment buildings, the cheapest option is to get a monthly free electricity contract, where the electricity company's bill is only the price of the energy used. The price per kWh of electricity under such contracts is usually slightly higher than, for example, the price of exchange electricity, but due to the low consumption, the small increase in the price of electricity does not affect the overall picture.
What is not included in the electricity contract?
In addition to the electricity billed under the electricity contract, the user is also charged electricity tax and the electricity transmission price - usually on a different bill from the electricity price. This is because the electricity tax and the electricity transmission are billed by the local grid company.
Electricity tax and electricity transmission cannot be put out to tender and the electricity contract does not affect their price. The electricity tax is the same for everyone, and electricity transmission prices are determined by the place where you live.
Because transmission and electricity tax are not linked to an electricity contract, you may receive two separate electricity bills - unless your transmission company and your electricity company are the same company. However, this does not have to be the case, as you can buy electricity from any Finnish electricity company.
Frequently asked questions
What is the best electricity contract for a student?
Students are sometimes offered cheaper than normal supply contracts by electricity companies. Often these "student electricity contracts" are not actually cheaper than other contracts. So compare electricity contracts (including exchange electricity) before ordering electricity, even if some electricity companies advertise cheaper electricity for students.
See comparison: Student electricity contracts
Why am I getting two electricity bills?
There are two different things to consider when buying electricity: the price of electricity and the price of electricity transmission. When buying an electricity contract, you can compare the prices of the companies selling energy and choose any Finnish electricity company. However, the electricity is always transmitted by a local transmission company, and the electricity transmission is also priced separately. You cannot therefore change the company responsible for the electricity transmission - it is always automatically determined by the place where you live. It is therefore not possible to influence the price you pay for electricity transmission.
Some transmission companies also sell electricity, so if you contract with one of these companies, you will not receive separate bills from different companies if you sign an electricity contract with the transmission company in your area.
Can I get an electricity contract without credit history?
It is possible to get an electricity contract without credit history. In Finland, electricity is defined as a fundamental right and companies cannot refuse to sell it on the grounds of default. However, an electricity company may charge an additional deposit to a credit-impaired person. It is therefore a good idea to find out well in advance before you move house or sign a contract.
Why compare electricity contracts?
Electricity should be put out to tender whenever possible. In many cases, electricity is sold by both stand sellers and telephone sellers, which prevents the buyer from comparing prices between electricity companies.
An electricity contract bought from a stand or a telephone retailer is often not the cheapest on the market. It is also difficult to verify this at the stand or over the phone - sellers rarely tell you the general market price level in these situations.
Comparing electricity contracts online makes it easier to buy electricity, and you can compare different electricity contracts at your leisure before ordering.
How can I terminate my electricity contract?
A fixed-term electricity contract can only be terminated at no extra cost if you move house. Termination of a fixed-term contract is possible with a two-week notice period.
When you change your electricity contract to another company, the new electricity company will usually terminate the old contract on your behalf.
Which electricity company can I order a contract from?
It is possible to conclude an electricity contract with any company selling electricity in mainland Finland. There are dozens of electricity companies in Finland, so it is worth comparing contracts carefully.
An electricity contract with the biggest and best-known company is not necessarily the best or cheapest option. In many cases, electricity can be obtained more cheaply from smaller companies.
How is the price of electricity determined?
The price per kWh of electricity is determined differently for different electricity contracts. You can choose which pricing model you want when ordering an electricity contract. The lower part of this article explains how electricity is priced in different contracts. The price per kWh of electricity varies depending on the type of contract and the electricity company.
When you sign up for a new electricity contract, you can choose which electricity company you want to buy your electricity from. That's why it's so important to compete for electricity - you can quickly find the best electricity contract by making a comparison on one website.