Find Finland's Cheapest Fixed-Price Electricity Contract
Compare fixed-price, fixed-term, and package deal electricity contracts below.
The cheapest fixed-price electricity contract in Finland
Fixed-price electricity contract: Price composition and meaning for the consumer
Two kinds of package deals
The term "fixed electricity contract" usually refers to two different types of contract: it is either a fixed-term electricity contract, where the electricity the kwh/hour price is fixed, or a indefinite electricity contract where is a fixed monthly price. This is also known as package electricity. For example, your electricity bill is always €60/month if the annual consumption remains below 3000 kwh.
What is a fixed price electricity contract?
A fixed-price electricity contract means that the electricity price is locked for the entire contract period. This means that the prices will remain the same regardless of how the market prices change. The duration of fixed-price contracts typically varies from a few months to three years.
It is good to remember that electricity contracts with a fixed monthly price usually have a ceiling for the electricity usage included in the price.
Basic principles and definition
In a fixed-price contract, the price of electricity is determined in advance and remains the same throughout the contract period. This provides the electricity user with predictability and stability because he knows exactly how much the electricity bill will be each month.
Current considerations
The Consumer Disputes Board has recently made a decision which limits the pricing freedom of electricity companies. According to this decision, the price increase of an electricity contract valid for the time being is unreasonable if it exceeds 15% per year.
This decision has sparked a wide debate among electricity companies. Many companies fear that the decision will endanger the operation of the free electricity market and increase business uncertainty. As a result, some companies may consider offering affordable fixed-term or open-ended electricity contracts.
The price of a fixed electricity contract - what does it consist of?
To better understand a fixed-price electricity contract, let's look at what its price consists of and compare it to other contract types.
The advantages and disadvantages of a fixed-price electricity contract
How is a fixed-price electricity contract made?
- Comparison and research: Before signing a contract, it is important to compare the contracts offered by different electricity companies.
- Terms of the contract: Carefully study the terms of the contract before signing.
- Making the contract: The contract is usually made on the electricity company's website.
What to pay attention to?
When you make a fixed-price electricity contract, pay attention not only to the price, but also to the other terms of the contract. Understand the risks and evaluate your own electricity consumption. The best deal depends on your own needs and situation.
Fixed-price for 24 months
Fortum's 24-month fixed-price electricity contract is a great option if you want to secure your electricity price for a longer period of time. This contract protects you from electricity price changes and offers budgeting security for two years.
Fixed-price for 12 months
If you don't want to commit to a long-term contract, Fortum's 12-month fixed-price electricity contract may be the best solution for you. This contract offers price stability for one year, protecting you from possible increases in market prices.
By choosing Fortum's 12-month fixed-price electricity contract, you get peace of mind and the opportunity to check the market situation after a year, after which you can decide whether you want to renew the contract or switch to a different type of contract.
How does a fixed electricity contract differ from other contract types
In other types of electricity contracts, such as a spot price electricity contract, the price of electricity can vary depending on the market situation. This means that the electricity bill can be different every month, depending on what the market price of electricity has been.
The advantages of a fixed-price electricity contract
Predictability and stability
As mentioned above, the biggest advantage of a fixed-price electricity contract is its predictability and stability. The price of electricity does not change according to the market situation, so the electricity user knows exactly how much his electricity bill is every month. This can help with budgeting and planning.
Protection against price changes
A fixed-price electricity contract offers protection from price fluctuations in the energy market. This means that if the market price of electricity rises, consumers covered by a fixed price contract will not suffer from this rise. This protection can be especially useful during times when energy prices are on the rise.
Disadvantages of a fixed-price electricity contract
Possible savings will be missed
On the other hand, if market prices fall, consumers covered by fixed-price contracts will not benefit from this fall. They continue to pay the same price for electricity, even if it is cheaper in the market.
The fixed price of electricity may be higher
Also, because fixed-price contracts involve the seller taking on the risk of price fluctuations, they may initially be more expensive than contracts that track market prices. This means that the initial price of a fixed price contract can be higher than, for example, a spot price contract.
Next, we'll look at how to apply for a fixed-price electricity contract and what points you should pay attention to when making a contract.
How is a fixed-price electricity contract made?
Comparison and research
Before signing a fixed-price electricity contract, it is important to compare the contracts offered by different electricity companies. This will help you understand what options are available and which contract best suits your needs. You can use various online services to compare electricity contracts.
Terms of the contract
Once you have found a suitable electricity contract, read the terms of the contract carefully. Check, for example, whether the contract has a fixed term, what service fees are included in the contract, and how much electricity costs in a fixed-price contract.
Making the contract
When you are satisfied with your choice, you can make an electricity contract. This is usually done on the electricity company's website. Be sure to check the details of the contract before signing it.
What should you pay attention to when making a fixed-price electricity contract?
Comparison of price and other conditions
As mentioned above, it is important to compare the contracts offered by different electricity companies. Pay attention not only to the price, but also to other terms of the contract, such as deadlines and service fees.
Understand the risks
Remember that a fixed-price contract has its own risks. If the price of electricity falls in the market, you will not benefit from this price reduction. On the other hand, if prices rise, you are protected from this rise.
Estimate your own electricity consumption
Evaluating your own electricity consumption can help you choose the right contract. If you use a lot of electricity, a fixed price contract can be a good option because it protects you from price increases.
Fixed-price or spot-price electricity contract?
The choice between a fixed electricity contract and exchange electricity largely depends on your life situation and your attitude towards risk. To facilitate the comparison, we present two fictional people, Budget-Bertta and Relaxed Risto.
Budget-Bertta keeps a strict budget and regularly monitors electricity market prices. He is ready to work to find the best possible offers and take advantage of electricity price fluctuations. Bertta's choice is most often spot-price electricity because it is important for her to maximize savings and take advantage of low market prices. However, this can mean greater risk and price volatility.
Relaxed Risto, on the other hand, values predictability and ease. He does not want to spend time following the electricity market or worry about the variation in the amount of the electricity bill from month to month. The most important thing for him is that the amount of the electricity bill is predictable and the same every month. Risto is more likely to choose a fixed electricity contract, which offers a stable price throughout the contract period, although this may sometimes mean that he does not benefit from the lowest prices on the market.
Both types of contracts have their own advantages and disadvantages and suit different needs. Your choice depends on which of these profiles resembles you more. The most important thing is that you make a choice that supports your own financial goals and lifestyle.
| Characteristics | Spot Price Electricity | Fixed-price |
| Electricity Price in Finland | Varies hourly according to market prices | The price remains the same throughout the contract period |
| Savings | Savings are possible if you can consume electricity when prices are at their lowest | The price is always the same, so there is no opportunity to save by scheduling electricity consumption. However, you can save time when there is no need to use exchange electricity price changes |
| House type | Best suited for detached houses where it is possible to regulate electricity consumption | Recommended for apartment buildings where electricity consumption is more stable |
Check also: Electricity Contract When Moving
FAQ
Is it worth signing a fixed-price electricity contract?
A fixed-price electricity contract protects you from price changes during the term of the contract. However, if you believe that the price of electricity will decrease in the future, a fixed electricity contract may cost more than a variable electricity contract.
Can the price of a fixed-price electricity contract increase?
The price of a fixed electricity contract remains the same throughout the contract period. However, at the end of the contract, the price of electricity may change for the next contract period.
Can a fixed-price electricity contract be terminated?
It may be possible to terminate a fixed electricity contract, but it may cause termination costs. We recommend that you read the contract terms and contact your electricity company for more detailed information.
Can a fixed-price electricity contract be changed?
You can usually switch from a fixed electricity contract to another, but this may involve switching costs. Check the contract terms or contact your energy company for more information.
Is the electricity transmission price fixed?
The electricity transmission price is not fixed. It varies depending on many factors, such as where you live and how much electricity you use. Electricity transfer prices are decided by local electricity distribution companies and may change over time.
What is package-deal electricity?
Packet electricity is a form of electricity contract where the customer pays a fixed monthly price regardless of their electricity consumption. It can be a good option if your electricity consumption is steady and predictable, but if you use little electricity, package electricity can be more expensive than other contract types.
Teemu Pesonen
Teemu Pesonen is one of the founding members of Sähkösopimukset.com and a platform technology professional with over 10 years of experience. His goal is to build the best comparison website for electricity contracts in Finland - not more than that.
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