Sähkösopimus: electricity contract

Detailed explanation

The Finnish electricity market is liberalized, meaning you can choose your electricity retailer (sähkönmyyjä) while the distribution network company (jakeluverkkoyhtiö) is determined by your location. This creates two components to your electricity bill: the energy you consume and the network fees for delivering it.

Electricity retail

• •You choose this company and can switch providers. They sell you the actual electricity and compete on price. Popular retailers include Fortum, Helen, Vattenfall, and numerous smaller companies.

Network distribution

• •This is fixed based on your address. The local distribution company (like Caruna, Elenia, or Helen Sähköverkko) maintains the power lines and delivers electricity to your home. You cannot choose this provider.

When signing an electricity contract, you'll encounter different pricing models:

• •Määräaikainen sopimus (fixed-term contract)

• •Locked price for a set period (usually 1-2 years)

• •Toistaiseksi voimassa oleva (indefinite contract)

• •Variable pricing that can change with market rates

• •Pörssisähkö (spot-price electricity)

• •Price follows the Nord Pool electricity exchange hourly

How it affects expats

• •Not included in rent: Most Finnish rentals require you to arrange your own electricity

• •Setup required before moving: Arrange your contract before your move-in date to have power from day one

• •Finnish ID needed: Most providers require a Finnish personal identity code (HETU)

• •Security deposits: Without credit history, some providers may require a deposit

• •Winter costs: Finnish winters mean high electricity usage; budget accordingly

• •Price comparison: Use comparison sites like sähkönhinta.fi or kilpailuttaja.fi to find the best rates

How to set up your electricity contract

• Find your distribution company: Enter your address on energiavirasto.fi to identify your local network operator

• Compare electricity retailers: Use comparison websites to find competitive rates

• Choose your contract type: Fixed-term for price stability, spot-price for potentially lower costs (with risk)

• Provide required information: Address, move-in date, personal identity code, bank details

• Confirm the start date: Ensure electricity is connected from your first day in the apartment

Understanding your electricity bill

Your monthly bill typically includes:

• •Sähköenergia

• •The electricity you consumed (kWh x price)

• •Siirtomaksu

• •Network distribution fee (fixed monthly fee plus consumption-based charge)

• •Sähkövero

• •Electricity tax

• •ALV

• •Value-added tax (24% on electricity)

The distribution fee often equals or exceeds the energy cost itself, especially for low-consumption households.

Tips for managing electricity costs

• •Monitor consumption: Most providers offer apps or online portals to track usage

• •Compare annually: Contract prices change; check if switching saves money

• •Consider spot pricing: If you can shift usage to off-peak hours, spot-price contracts may save money

• •LED lighting: Especially important during dark Finnish winters

• •Heating awareness: Electric heating is expensive; understand what your apartment uses

Typical costs

For a small apartment (30-50 m²) without electric heating: — Monthly consumption: 100-200 kWh — Monthly cost: 40-80 EUR (varies significantly with market prices)

For an apartment with electric heating: — Monthly consumption: 500-1500 kWh in winter — Monthly cost: 150-400 EUR in winter months

Related terms

• •Kotivakuutus (Home Insurance) — Personal home insurance covering your belongings, liability, and potential damages in your Finnish residence

• •Vastike (Maintenance Fee) — Monthly fee paid by apartment owners to cover building maintenance, repairs, and shared expenses in Finnish housing companies

• •Muuttoilmoitus (Change of Address) — Official notification to Finnish authorities when you move, required for updating your registered address in the population system

• •Vuokra-asunto (Rental Apartment) — Rental housing in Finland