Find The Cheapest Fixed-Term Electricity Contract in Finland
The biggest reason for this discrepancy is considered to be the security-oriented mind of the Finns. When you choose a fixed-term electricity contract, you are safe from price fluctuations, because the price of electricity is locked for a fixed period.
The cheapest fixed-term electricity contract in Finland
A fixed-term electricity contract is an option for those who want to commit to a specific electricity company and electricity price for a longer period of time. Fixed-term contracts usually have contract periods of 12 to 36 months, and often offer a fixed price for the use of electricity for the entire contract period.
In 2022, the popularity of spot-price electricity contracts was also growing in Finland, but 50% of Finns still preferred a fixed-term contract.
| Contract type | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|
| Fixed-Term Contract | 42 % | 49 % | 52 % | 54 % | 50 % |
| Toistaiseksi voimassa oleva | 49 % | 40 % | 40 % | 37 % | 36 % |
| Spot Price Electricity | 9 % | 11 % | 8 % | 9 % | 14 % |
The advantage of a fixed-term electricity contract is price stability, which enables predictability of the electricity bill. This can be especially useful when the market is volatile and prices fluctuate widely. Fixed-term contracts may also offer discounts.
However, fixed-term contracts can also have disadvantages:
- During the contract, you cannot change the electricity company or the contract without having to pay a contract penalty or replace the discounts you received at the beginning of the contract.
- If the price of electricity falls in the market, you will not be able to take advantage of the lower prices until the fixed contract period ends.
When you are considering entering into a fixed-term electricity contract, compare the offers of different electricity companies carefully. The Electricity tender is worth it and it's free on our site. Take into account the duration of the contract, the price, and any additional services as well as contract terms and termination options. This way you can make a smart decision that best suits your own needs and financial situation.
Pricing of a fixed-term electricity contract
The price of a fixed-term electricity contract is locked at the start of the contract and remains the same throughout the contract period. The pricing consists of two parts: the basic fee and the energy fee.
- The basic fee is a fixed monthly fee that covers the electricity company's administrative costs.
- The energy fee is based on the amount of electricity consumed and is paid per kilowatt hour.
Fixed-term electricity contract types
24-month fixed-term electricity contract
The 24-month fixed-term electricity contract is one of the most common types of electricity contracts in Finland. A 24-month fixed-term electricity contract offers a flat price for two years and helps to avoid unexpected electricity price increases. However, if the price of electricity in the market falls, you will not benefit from this during the contract. In this sense, it is important to take into account the electricity market situation and price forecasts before entering into a long-term contract.
1-year electricity contract - i.e. 12-month fixed-term electricity contract
A 12-month fixed-term electricity contract is another popular option. It provides stability for a year and allows you to reassess the market after a year. If you expect electricity prices to drop in the future, this can be a good option as it gives you the flexibility to re-evaluate the electricity market a year from now. Almost every electricity company offers this contract, so you will definitely find a deal that you like on our website! At the moment, the cheapest 1-year electricity contract comes from Nordic Green Energy.
6-month fixed-term contract - a rare treat
Vaikka sähkösopimukset ovat yleensä 12 tai 24 kuukauden pituisia, joillakin sähköyhtiöillä on tarjolla myös 6 kuukauden määräaikaisia sopimuksia. Nämä sopimukset ovat harvinaisempia, mutta niitäkin löytyy markkinoilta. Kuuden kuukauden määräaikainen sopimus on joustavampi kuin pidemmät määräaikaiset sopimukset, mutta tarjoaa silti hintavakautta. Tällä hetkellä edullisin 6 kk määräaikainen sähkösopimus on Väreen Välkky.
The cheapest fixed-term electricity contract in Finland
Currently, the cheapest fixed-term electricity contract comes from Oomi. Oomin's fixed electricity contract 24 months is an affordable fixed-term electricity contract. Please keep an eye on our page, because the price of the cheapest fixed-term electricity contract changes often.
Is a fixed-term electricity contract worth it in 2023?
When the electricity market is volatile and prices are rising, a fixed-term electricity contract can be a good choice because it offers stability. This means that you don't have to worry about electricity prices rising during the contract period. This can make budgeting easier and reduce concerns about potential cost increases.
On the other hand, if electricity prices fall in the market, you will not be able to take advantage of these savings during the term of the fixed-term contract. In this case, an open-ended contract where the price follows the market could be a more affordable option.
In general, we recommend exchange electricity as a more profitable option, especially when the market situation is stable. However, a fixed-term electricity contract can be a stress-free choice.
Termination of fixed-term electricity contract and contractual penalty
Termination of a fixed-term electricity contract before the end of the contract period may cause additional costs. Most electricity companies charge a contractual penalty if the fixed-term contract is terminated before the end of the contract period.
If you move to a new address, some companies allow you to terminate a fixed-term contract without penalty.
Temporary electricity contract and moving
When you move, you must sign a new electricity contract for your new address. However, it does not mean that your old fixed-term contract will automatically end. You may have to pay two electricity bills, unless the old contract can be transferred to the new address or if it cannot be canceled without a contractual penalty.
However, many electricity companies offer the possibility to transfer the electricity contract to a new address without additional costs. It is worth contacting the electricity company and asking about the terms of your contract when it comes to electricity contract and moving.
Fixed-term or short-term electricity contract?
The choice between a fixed-term and short-term electricity contract depends on many factors.
Fixed-term is a good option if you value predictability in electricity costs and want to avoid unexpected price increases. However, if the market price of electricity falls, you will not be able to take advantage of lower prices with a fixed-term contract.
Short-term contract, also known as spot-price contract, is a good choice if you value the ability to react to changes in the electricity market and take advantage of possible lower prices.
The choice between a fixed-term and indefinite contract requires consideration of one's own energy consumption, price expectations and need for flexibility. It is recommended to compare the offers of different electricity companies on our website to find the contract that best meets your needs.
What happens when the fixed-term electricity contract ends?
When a fixed-term electricity contract ends, you usually have a few options and consequences that can vary depending on the terms of the contract and the electricity supplier. What can happen after the end of the contract?
1) Renewal of the contract: Some electricity suppliers may automatically renew your contract after the end of the fixed-term contract, but with new terms and prices. This means that you will continue to use the electricity supplier's services, but with new contract terms, such as an open-ended contract instead of a fixed-term contract.
2) Switching to another contract: You can decide to look for a new electricity contract either with the current electricity supplier or with another electricity supplier. In this case, you should compare the offers, pricing and contract terms of different electricity suppliers so that you can choose the option that best suits you.
3) Freely changing contract: If you do not sign a new contract after the end of the contract, you may be transferred to the electricity supplier's freely changing contract. This means that you will continue to receive electricity from the supplier, but without a fixed contract. In this case, the price of electricity may vary depending on the market.
After the end of the contract, the electricity supplier may have special offers or recommendations for you, so it is worth contacting them to get more detailed information and advice about your situation. Also remember that changing your electricity supplier or entering into a new contract may require certain deadlines according to the notification or contract period, so it's worth getting to know them and act as necessary in time.
Exchange electricity can offer significant savings, but its downside is the unpredictability caused by price fluctuations. You should weigh the advantages and disadvantages according to your own situation and needs before choosing a stock exchange electricity contract.
FAQ
What does a fixed-term electricity contract mean?
A fixed-term electricity contract is a contract in which electricity delivery and price conditions have been agreed upon for a specific period of time. The contract can usually last from a few months to several years. A fixed-term electricity contract gives the consumer or company a standard price and predictability of electricity usage costs during a certain period of time.
Can a fixed-term electricity contract be terminated?
The expiry date of the fixed-term electricity contract is agreed in advance, and the terms of the contract may limit the termination of the contract before the end of the term. In general, it is not possible to terminate a fixed-term contract before its term without canceling the contract or paying a severance payment.
If termination of the contract before the end of its term becomes relevant, it is a good idea to contact the electricity supplier and find out the possibilities of terminating the contract and possible termination compensation.
How to get rid of a fixed-term electricity contract?
If you want to get out of a fixed-term electricity contract, you must:
1) Research the terms of that contract and find out what options you have to terminate the contract before the end of the term.
2) Contact the electricity supplier and discuss termination with them. Tell them about your situation and ask for more detailed information about the contract termination options. They can provide you with information on how to proceed and possibly offer alternative solutions.
3) Look for possible exceptions: If you have a special reason, such as moving (abroad) or financial hardship, you may be entitled to terminate the contract before the end of the period without penalties .
Can the price of electricity rise in the middle of the contract period?
The price of electricity is alive, but with a fixed-term electricity contract you protect yourself from the rise in the price of electricity, whereas with spot-price electricity you are not protected from price fluctuations.
What happens if I terminate the electricity contract early?
Premature termination may result in a contractual penalty. In some situations, for example in connection with a move, a fine is not necessarily charged.
Can I change the terms of the electricity contract in the middle of the contract period?
Generally, the terms of a fixed-term contract cannot be changed during the contract period. Changes are usually only possible after the end of the contract period, but it is best to check this with your electricity company if the contract is unclear on this point
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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