Electricity - Glossary
Spot price
The market price of electricity, set hourly on the Nord Pool power exchange based on supply and demand.
The spot price is the wholesale market price of electricity, set on the Nordic Nord Pool power exchange. The price varies by the hour and is always published the previous day around 1-2 pm. It is typically given in cents/kWh (cent per kilowatt-hour) or EUR/MWh (euro per megawatt-hour).
Many factors influence the spot price: the effect of weather on wind and hydro power, the effect of temperature on demand, the capacity of cross-border interconnectors, and plant availability. The price is typically lowest at night and during weekends, and highest on weekday mornings and afternoons.
In Finland the spot price has varied considerably during the 2020s. In 2022 prices were exceptionally high during the energy crisis, but under normal conditions the average has been 4-8 cents/kWh. The price the consumer pays consists of the spot price + the supplier's margin + monthly fee + transmission charge + taxes.
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Related concepts
Spot-priced electricity
An electricity contract where the price varies by the hour according to the spot price on the Nord Pool power exchange.
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.
Electricity tax
An excise tax levied by the state on electricity. In Finland the rate is 2.253 cents/kWh (tax class I, households).
Kilowatt-hour (kWh)
The unit of electrical energy. One kilowatt-hour equals one hour of use of a 1,000-watt appliance.
Frequently asked questions
How is the spot price determined?
The spot price is set on the Nord Pool power exchange based on supply and demand. Producers and buyers submit bids for each hour of the following day, and the price settles at equilibrium.
Where can I see the spot price?
On Sopimusvahti's electricity price page you can see the current hourly prices. Prices are always published the previous day at 1-2 pm.
Why does the spot price vary so much?
The price depends on production and demand. On windy and sunny days it drops; on cold, still winter days it rises. Interconnectors to neighbouring countries also play a role.