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Electricity - Glossary

District heating

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

District heating is the most common form of heating in Finnish apartment buildings and urban terraced houses. Hot water is produced at a power plant and delivered through a network of pipes to the buildings' heating systems. District heating is separate from electricity - its price is not tied to your electricity contract.

In a district-heated home, electricity consumption is significantly lower than in an electrically heated home, because electricity is only used for appliances, lighting and consumer electronics. A typical flat with district heating uses 1,500-3,000 kWh of electricity per year.

District heating accounts for roughly 90% of heating in residential apartment buildings in Finland. Outside cities there is usually no district heating network, and heating is done with electricity, geothermal, an air-source heat pump or oil.

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Frequently asked questions

How does district heating affect the choice of electricity contract?

In a district-heated home electricity use is low (1,500-3,000 kWh/year), so the choice of contract has a smaller impact on the bill. Spot-priced electricity with a low monthly fee is often cheapest.

Is district heating more expensive than electric heating?

District heating is generally a cost-effective option in urban areas. It has a steady price and isn't exposed to electricity price spikes. Geothermal heating can be cheaper in the long run.

Can heating be switched in a district-heated home?

No, district heating is a local monopoly. However, you can freely compare electricity suppliers - this covers the electricity for appliances and lighting.