A spot contract (pörssisähkö) follows the electricity exchange price, so your cost changes through the day, while a fixed-price contract keeps the same price per kilowatt hour for the whole contract. Spot suits people who can move their use to cheaper hours and can live with swings, and fixed suits people who want a predictable bill.
Two questions decide your contract
Every electricity contract in Finland answers two questions. How is the price set? And how long does the contract last?
The Energy Authority lists three ways to set the price: fixed, spot and hybrid. It lists two durations: fixed-term and open-ended. Mixing these gives the main options you will see.
The main options side by side
| Contract | How the price works | Can the price change? | Who it tends to suit |
|---|---|---|---|
| Spot (pörssisähkö) | Exchange price plus the seller's margin, plus a monthly basic fee | Yes, all the time, with the market | People who can shift use to cheap hours and accept swings |
| Fixed-term, fixed price | Agreed price per kWh for a set period, often one or two years | Only because of new laws or decisions by authorities | People who want the same price for a known period |
| Open-ended, fixed price | A set price per kWh with no end date | Yes, with one month's notice from the seller | People who want a steady price but the freedom to leave |
| Hybrid | Fixed basic fee, fixed price per kWh and a monthly adjustment based on exchange prices | The adjustment changes each month | People who want some link to the market with less exposure |
Spot electricity
With a spot contract, the price follows the electricity exchange. The Energy Authority says it can change hourly and from day to day. Sellers add their own margin on top of the exchange price and usually charge a monthly basic fee. Helen, for example, prices its exchange electricity as the spot price plus a margin per kWh, plus a basic fee.
The risk is simple. When exchange prices are low, you pay little. When they spike, you pay more, straight away. Spot works best if you can run the dishwasher, washing machine or car charger at cheaper times, and if a high month won't cause you problems.
Fixed-term contracts
A fixed-term contract locks in the price for a set period. During that time the seller can only raise the price because of changes in law or decisions by authorities.
The trade-off is commitment. A fixed-term contract normally runs until its end date. If it is longer than two years, you can end it after two years with two weeks' notice.
This suits you if you want to know your energy price for the next year or two and you don't plan to move in the meantime.
Open-ended fixed-price contracts
An open-ended contract has no end date. The price per kWh is set, but the seller can change the terms with one month's notice. You can cancel with two weeks' notice.
So "fixed" here means steady for now, not guaranteed. In return you can leave easily if a better offer comes along. The Energy Authority suggests comparing prices regularly even if you are on an open-ended contract.
Hybrid contracts
A hybrid contract has three parts, according to the Energy Authority : a fixed basic charge, a fixed price per kWh, and a consumption impact. The consumption impact is worked out each month from exchange prices.
That makes the bill harder to predict than a fixed price. But the Energy Authority notes that it also gives some protection against price spikes compared with pure spot.
How to choose
The Energy Authority says the right choice depends on three things:
- How much and when you use electricity. The more you use, the more the choice matters.
- If you can move your use to cheaper hours. If you can't, spot is harder to benefit from.
- How much you value predictability. Some people prefer a steady bill over the lowest possible total.
If you have just moved to Finland, you may not know your use yet. Your first bills will show it, and so will Fingrid's Datahub service, which the Energy Authority points to for checking household use.
How to compare offers
The Energy Authority runs sahkonhinta.fi , an impartial service that lists offers from all electricity sellers. It works in English, Finnish and Swedish.
- Enter your postal code.
- Enter your estimated yearly use. Your latest bill shows this.
- Filter by contract type, duration, how the electricity is produced and metering type.
- Compare the total, not just the price per kWh. Check the monthly basic fee too.
You can't sign a contract on sahkonhinta.fi. Contact the seller you choose directly. You can also compare electricity contracts on Landed.
Whatever you pick, the seller only covers the energy part of your bill. Distribution charges and electricity tax come from your local grid company and don't change with your contract type.
Landed's free checklist includes choosing an electricity contract as one of your moving steps.
Quick checklist
- Decide if you want a steady price or a market price.
- Check whether the contract is fixed-term or open-ended.
- For spot, look at the seller's margin and basic fee.
- For fixed-term, check the end date and if you might move before it.
- Compare offers on sahkonhinta.fi with your postal code and yearly use.
- Make the contract at least two weeks before you want it to start.
