1 year electricity contract - Stability and flexibility
The one-year contract offers the consumer a safe and predictable way to manage their electricity bill.
Where can I find the cheapest 12-month electricity contract?
The cheapest 12-month electricity contract is most easily found in the price comparison. See below which is the best 12-month electricity contract for you.
A 1-year electricity contract is the shortest fixed-term contract right now
A 1-year electricity contract offers a shorter term option compared to a traditional two-year contract.
When you choose a 1-year electricity contract, you commit to the contract for the whole year. Termination of the contract before the end of its term is usually only possible in certain situations, such as when moving.
The biggest advantage of a 12-month electricity contract is the price stability it offers. With a fixed price electricity contract you don't have to worry about possible market price fluctuations, but you can enjoy the same low price all year round.
|12-month electricity contract in a nutshell
|💡 The same fixed price all year long
|Enjoy a predictable and constant price for the whole 12 months.
|🕒 No commitment longer than one year
|Freedom to change or renew the contract after one year without long-term commitment.
|📈 Consumption effect?
|Flexibility in the electricity bill according to consumption - save by using electricity at cheaper times.
Who is a 12-month electricity contract suitable for?
A 12-month electricity contract is perfect for consumers looking for a balance between price stability and flexibility. It is an ideal choice for those who value predictable costs and want to avoid long-term commitments, while allowing for a re-evaluation of the electricity price situation after a year.
The contract type is also suitable for those planning changes in the near future, such as moving. They can find a suitable solution in a one-year contract that does not bind them for too long.
What does the price of the annual electricity contract include?
The price of a 1-year electricity contract consists of several different components that affect your total costs:
- ⚡ Electric energy: This portion is billed based on your consumption and is usually expressed in cents per kilowatt hour. This is the part where your consumption directly affects the final amount of your bill.
- 💳 Basic fee: This fixed monthly fee is charged in your electricity contract, regardless of how much electricity you consume. If your electricity consumption is low, it is especially important to pay attention to the size of the basic charge and possible discount offers for the basic charge.
- 🛍️ Value added tax: Please note that 24% value added tax is also added to your electricity bill, which is a significant factor in the final amount of the bill.
- ➡️ Electricity transmission: In addition to the electricity contract, you also pay for electricity transmission, the price and biller of which is determined by the local electricity network company. The price of electricity transmission cannot be tendered, and it is part of the total amount of your electricity bill.
The price of electricity and future prospects - Is the annual contract reasonable?
According to State Treasury, the price of electricity rose by almost 31% for consumers in 2022, however, the rise was slower than the euro area average. Wholesale electricity prices were the second lowest in the EU.
On a general level, it is difficult to say whether a 12-month electricity contract is a better option than other contract types. However, according to the Treasury, consumer prices for energy are expected to start falling in 2024. Electricity companies already know this.
If you believe that the price of electricity will increase unexpectedly, you might want to switch to a shorter electricity contract from stock exchange electricity. Väre Välkky is a great choice for a tomboy!
|The change in electricity price
|+31% for consumers
|Slowdown of price increase
|Drop in price begins 2024
The popularity of the annual electricity contract is growing
The recent price fluctuations in the electricity market have affected consumers' choices regarding the length of electricity contracts. Previously common two-year fixed-term electricity contracts have lost their popularity as consumers have started to prefer shorter, more flexible contract models .
As mentioned at the beginning, the advantage of a 12-month electricity contract is the flexibility it offers. One year after the end of the contract period, you have the opportunity to change to a new, possibly cheaper electricity contract, if the market prices have dropped. If, on the other hand, you had committed to a two-year contract, you would not be able to benefit from possible price reductions until several years later.
Environmentally friendly 12-month electricity contracts
Environmentally friendly 12-month electricity contracts play an important role in promoting sustainable energy consumption. These contracts offer consumers the option of choosing electricity produced from renewable energy sources such as wind, hydro or solar power.
The environmentally friendly 12-month electricity contract is ideal for consumers who want to combine ecological responsibility and economic rationality. This Contract Type offers stability at a fixed price for a year, while allowing for a positive impact on the environment.
By choosing an environmentally friendly 12-month electricity contract, consumers can take a step towards a more environmentally conscious lifestyle.
- Väre offers Välkky wind electricity, which is a fixed-term 12-month or 24-month electricity contract that offers emission-free, 100% renewable wind electricity
- Hehku's electricity contracts include the green electricity additional service, which enables the selection of renewable energy at an additional price of only 1.4 cents/kWh, bringing climate action into everyday life.
The advantages and disadvantages of a 12-month contract
- A stable price: You get benefits, such as a predictable electricity bill and protection against price fluctuations.
- Cons: If the electricity market prices drop, to benefit from the lowest prices.
- Shorter commitment: A one-year contract offers flexibility.
- Cons: The contract cannot be terminated before the deadline without sanctions.
- A good compromise: Perfect for those looking for a balance between price stability and commitment.
A one-year electricity contract offers many consumers an ideal solution.
It combines a suitably sized commitment and a worry-free, fixed price for the entire contract period. This contract model enables the combination of financial stability and flexibility, which is important in the current uncertain market situation.
By comparing, you will find the cheapest 12-month electricity contract
Finding the cheapest electricity for a 12-month contract period requires a careful comparison of the offers of different electricity companies. We help you in this process by offering a free electricity comparison platform. Our platform covers all essential, nationally operating electricity companies, so you can easily compare different options and find the most suitable electricity contract for you.
After signing the contract, you are committed to the selected price for the next year, so it is important to choose carefully.
Remember that price alone is not the only factor to consider. There are also other important factors that may influence your choice. For example, by choosing a carbon-free electricity contract, you can contribute to the cause of a cleaner environment. This not only supports sustainable development, but also reflects your own values as an electricity consumer.
|ℹ️ The effect of annual consumption on the cheapest electricity contract? When making an electricity contract, it is essential to know your own annual consumption, because of course it directly affects the size of your electricity bill. You can find your annual consumption by looking at your previous electricity bills.
For example, the consumption of an apartment building can vary between 1,000 and 2,500 kWh, while the consumption of a detached house with electric heating can be significantly higher, 15,000 to 30,000 kWh. This information will help you evaluate the costs of the contract and choose the option that best suits your needs.
12-month electricity contract - contract types
When you choose a 12-month electricity contract, you can choose from several different contract types:
|Electricity contract type
|⚡ Spot price contract
|The price is based on the hourly changing spot market price of electricity. Suitable for those who are ready to take advantage of fluctuations in market prices.
|🔒 Fixed term contract
|You pay a fixed price for electricity consumption. Ideal for those who want predictability and stability. A fixed-term electricity contract is suitable for those who want to take it easy and know the price in advance!
|💡 Consumption effects are taken into account in electricity contracts
|Some contracts offer discounts if you use electricity mostly in cheap market hours. Suitable for energy-efficient consumers who can adjust their electricity consumption.
Consumption-effective 12-month electricity contract
Many current 12-month electricity contracts have a consumption effect added, which is based on the electricity exchange price. This practically means that your electricity usage habits affect your electricity bill even more than in "normal" contracts.
The principle of the consumption-effect contract is simple: when you use electricity in the hours when the electricity price on the exchange is low, you get a discount on your electricity bill. If you use electricity in the hours when the price is higher, you pay for the electricity slightly more.
If you want a completely fixed price formation without fluctuations, you should choose a traditional fixed-price twelve-month electricity contract without a consumption effect. On the other hand, if you are ready to monitor and utilize the hourly prices of electricity on the exchange, a consumption-effect contract can offer significant savings opportunities.
Can I change the electricity contract in the middle of the contract period?
In a fixed-term contract, such as a 12-month contract, the contract cannot usually be changed in the middle of the season without penalties.
End of fixed-term 12-month contract
When the 12-month fixed-term electricity contract ends, you can bid your electricity contract again.
What is the advantage of a 1-year electricity contract?
The advantage of a 1-year electricity contract is predictability and stability. It offers a fixed price that protects against price fluctuations and helps with budgeting.
What does a consumption-effect electricity contract mean?
In a consumption-based contract, the price can vary depending on whether you use electricity during the cheaper or more expensive hours of the exchange. This encourages the use of electricity at cheaper times.
Is a 12-month electricity contract always the cheapest option?
Not necessarily. The affordability of the contract depends on the market situation, consumption habits and personal needs. Comparison and review of offers is important.
What makes a 12-month electricity contract flexible?
The flexibility of 12-month electricity contracts is mainly due to consumption-effect contracts, which allow the price of electricity to vary according to consumption. This gives consumers the opportunity to influence the size of their electricity bill. In addition, since the contract is only for one year, consumers have the opportunity to change the contract after one year, if the market situation or personal needs change.
Can I change electricity supplier in the middle of the 12-month contract period?
During a fixed-term contract, such as a 12-month electricity contract, switching electricity suppliers is usually restricted. Often, the contract can be canceled before the end of its term only under certain circumstances, such as when moving. It is important to check the terms of the contract, as they define the possibilities of switching and possible sanctions.
Do the days affect 12-month electricity contracts?
In 12-month electricity contracts, the time of day may have an effect on the price of electricity, depending on the type of contract chosen. If the contract has a consumption effect, such as in the Väre Välkky 12-month contract, the price of electricity varies depending on how electricity is available, and the days are important for this.