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Glossary

Glossary

Learn the key concepts for electricity and mobile plans. Clear explanations help you make better contract decisions.

Electricity

Spot-priced electricity

An electricity contract where the price varies by the hour according to the spot price on the Nord Pool power exchange.

Spot price

The market price of electricity, set hourly on the Nord Pool power exchange based on supply and demand.

Electricity transmission charge

The fee charged by the network company for transmitting electricity from the power plant to your home. The network company cannot be chosen.

Electricity tax

An excise tax levied by the state on electricity. In Finland the rate is 2.253 cents/kWh (tax class I, households).

Margin (electricity contract)

The premium added by the supplier on top of the spot price in a spot-priced contract, typically 0.25-0.99 cents/kWh.

Kilowatt-hour (kWh)

The unit of electrical energy. One kilowatt-hour equals one hour of use of a 1,000-watt appliance.

Electricity consumption

The amount of electrical energy used by a household or business, measured in kilowatt-hours (kWh).

Fixed-price electricity contract

An electricity contract where the energy price (cents/kWh) stays the same throughout the term, typically 1-3 years.

Comparing electricity contracts

The process of comparing different suppliers' offers to find the most affordable electricity contract.

Electricity transmission

The delivery of electricity from the power plant to the consumer via the grid. Handled by the local network company.

District heating

A centralised heating system in which hot water is piped from a power plant to buildings through a network of pipes.

Geothermal heating

A heating system that uses a heat pump to extract thermal energy from the ground or bedrock.

Mobile