In Finland you pay two companies for electricity: a seller you choose, who sells you the energy, and a grid company you can't choose, who delivers it to your home. You usually get one bill from each, and taxes are added on top.
Two companies, two jobs
The electricity seller (sähkönmyyjä) sells you the energy itself. There are many sellers, and you can pick any of them. This is the part you can shop around for.
The grid company (verkkoyhtiö) owns and runs the cables in your area. You can't pick this one. The Energy Authority explains that distribution is a natural monopoly: building parallel networks would cost too much and make supply less reliable. So your grid company depends on where you live. There are 77 of them in Finland, each licensed for its own area.
Getting connected when you move in
If you rent, you will usually sign an electricity contract yourself, according to InfoFinland . It isn't normally part of the rent.
You only need to contact the seller. The Energy Authority says to make the new contract at least two weeks before you want it to start. The new seller then cancels your old contract and makes the network contract for your new home on your behalf.
What's on the bill
The Energy Authority splits an electricity bill into three parts: the energy, the distribution charge and taxes. As a rough guide, energy is about 40% of the total, and distribution and taxes are about 30% each. The split varies with your home and how much you use.
| Line on the bill | Who charges it | What it is |
|---|---|---|
| Energy charge | Seller | A price per kilowatt hour (kWh) for what you use |
| Basic fee for energy | Seller | A fixed monthly charge |
| Distribution (transfer) charge | Grid company | A price per kWh for delivering the electricity |
| Basic fee for distribution | Grid company | A fixed monthly charge |
| Electricity tax and strategic stockpile fee | Grid company | Taxes billed with the network charge |
| VAT | Both | 25.5% |
Most homes get two bills, one from the seller and one from the grid company. If your seller is the local electricity company, both charges may come on a single invoice.
Energy
This is what the seller charges. It has two parts: a fixed monthly basic fee and a consumption charge based on how much you used. When you compare offers, look at both. A low price per kWh can come with a higher basic fee.
Distribution
This covers bringing electricity to your home and keeping the network running and up to date. It also has a fixed monthly charge and a price per kWh. That price depends on your metering method:
- General electricity: the same price at any time of day.
- Time-based: a different price for day and night.
- Seasonal: a different price for winter days and the rest of the year.
You can change your metering method free of charge once a year.
Taxes
Every bill includes VAT, electricity tax and a strategic stockpile fee. The electricity tax and the stockpile fee are billed together with the network service charge, so you will see them on the grid company's bill. VAT is 25.5%.
Contract types
Your contract with the seller has two features: how the price works, and how long the contract lasts.
How the price works:
- Fixed price: the price per kWh is agreed in advance and stays the same for the contract period.
- Spot price: the price follows the electricity exchange, so it changes through the day and from day to day.
- Hybrid: a mix of a fixed part and a variable part based on exchange prices.
How long it lasts:
- Fixed-term: binding for a set period, often one or two years. The seller can only change the price because of new laws or decisions by authorities.
- Open-ended: runs until you or the seller cancels it. The seller can change the terms with one month's notice. You can cancel with two weeks' notice.
Which one suits you depends on how much electricity you use, if you can move your use to cheaper hours, and how much you value a predictable bill.
How to compare sellers
The Energy Authority runs sahkonhinta.fi , an impartial comparison service that includes offers from all sellers. Enter your postal code and your estimated yearly use, which you can find on your latest bill. You can filter by how the electricity is produced and by metering type.
You can't sign a contract on sahkonhinta.fi itself. Once you find an offer, contact the seller directly. You can compare electricity contracts on Landed too.
Remember that only the energy part is open to competition. Your distribution charges stay the same whichever seller you pick.
Checking how much you use
You can see your household's electricity use in Fingrid's Datahub service, in your seller's online service or on your bill. Knowing your yearly use makes comparing offers much easier.
If you are setting up a new home, Landed's free checklist covers the electricity contract along with your other moving tasks.
Quick checklist
- Pick a seller and make the contract at least two weeks before you move in.
- Let the seller arrange the network contract with your grid company.
- Compare both the price per kWh and the monthly basic fee.
- Check the contract type: fixed, spot or hybrid, and fixed-term or open-ended.
- Expect two bills, one from the seller and one from the grid company.
- Look up your yearly use in Datahub or on your bill before you compare.
