Contract type comparison
Spot-price electricity vs Fixed-price electricity contract
The biggest decision when choosing an electricity contract is between spot price and fixed price. With a spot-price contract, the price varies hourly according to the market, whereas with a fixed-price contract you pay the same price for the entire contract period. Which is the better choice for you?
Compare your electricity contract
Compare electricity contracts and find the most affordable option for your usage
How does spot-price electricity work?
With a spot-price contract, you pay for electricity according to Nord Pool's hourly market price. The electricity company's margin (typically 0.3-0.6 cents/kWh) and a monthly fee are added on top. At its cheapest, electricity costs 0-2 cents/kWh at night and on windy days, while during cold spells the price can rise to over 30 cents/kWh. In the long term, spot-price electricity has on average been cheaper than a fixed-price contract.
How does a fixed-price electricity contract work?
With a fixed-price contract, you pay the same price per kilowatt-hour for the entire contract period - typically 12 or 24 months. The price does not change with market conditions. The fixed contract price includes the electricity company's estimate of future market prices and a risk premium, so it is typically more expensive than the average spot price over the same period.
Which is cheaper?
Historically, spot-priced electricity has been cheaper than a fixed-price contract about 80% of the time. This is because the fixed-price contract includes a risk premium. However, during exceptional winters - such as the 2022-2023 energy crisis - a fixed-price contract protected consumers from the worst price spikes. For heavy users (over 10,000 kWh/year), the savings potential of spot-priced electricity is greatest, especially when combined with smart consumption control.
Recommendation
For most Finns, spot-price electricity is the cheaper choice in total. A fixed-price contract is suitable if you want peace of mind and predictable bills - especially in electrically heated homes, where a single winter month can come as a surprise.
Frequently asked questions
Is spot price or a fixed-price contract worth it?
Spot-price electricity is worth it for most consumers because it is on average cheaper. A fixed-price contract is worth it if you value predictability and want to avoid surprises on the electricity bill - especially for heavy users, for whom a price spike can mean hundreds of euros in a single month.
Is spot-price electricity risky?
The price risk is real but manageable. For a small consumer (apartment), the risk is minimal - even in the worst case, the electricity bill rises by a few tens of euros. For a heavy user, the risk can be managed with smart heating control that shifts consumption to the cheapest hours.
Can a spot-price contract be switched to a fixed-price one mid-term?
Yes. A spot-price contract is usually open-ended, so you can switch to a fixed-price contract with 14 days' notice. Switching from a fixed-price contract requires the contract period to end or paying a termination fee.
How much can you save with spot-price electricity compared with a fixed price?
The saving depends on consumption and market prices. Typically, spot-price electricity is 1-3 cents/kWh cheaper than a fixed price. At a consumption of 10,000 kWh, that means annual savings of 100-300 euros. With smart consumption control, the saving can be even greater.