Electricity - Glossary
Spot-priced electricity
An electricity contract where the price varies by the hour according to the spot price on the Nord Pool power exchange.
With spot-priced electricity the consumer pays the market price for electricity that varies by the hour. The price is determined on the Nordic Nord Pool power exchange, where producers and buyers trade the next day's electricity. On top of the spot price the supplier adds its own margin (typically 0.25-0.99 cents/kWh) and any monthly fee.
Over the long term, spot-priced electricity is often the most affordable type of contract, because in a fixed contract the supplier adds a risk premium to cover price fluctuations. The price varies by the hour: at night and during weekends it is typically low, while on weekday mornings and evenings it rises with demand.
The savings potential is greatest for consumers who can schedule large appliances (washing machine, dishwasher, EV charging) to cheap hours. The main risk is price spikes on cold winter days, but for a small household the impact is usually minor.
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Related concepts
Spot price
The market price of electricity, set hourly on the Nord Pool power exchange based on supply and demand.
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.
Fixed-price electricity contract
An electricity contract where the energy price (cents/kWh) stays the same throughout the term, typically 1-3 years.
Electricity consumption
The amount of electrical energy used by a household or business, measured in kilowatt-hours (kWh).
Frequently asked questions
What does spot-priced electricity mean in simple terms?
With spot-priced electricity you pay a market price that varies by the hour. The price is low at night and higher during the day - the supplier adds a small margin on top.
Is spot-priced electricity risky?
Price spikes are possible on cold winter days, but over the long term spot-priced electricity is almost always cheaper than a fixed contract. For a small household the risk is minimal.
How do I switch to spot-priced electricity?
Compare spot-priced contracts in Sopimusvahti's price comparison and sign a new contract. The new supplier will handle terminating the old one.