What is an electricity contract?
An electricity contract is a contract concluded for the supply of electricity to a consumer or a company. The electricity contract defines the price of electricity, terms of delivery and other details related to the contract. Making an electricity contract is an important part of electricity consumption, as it directly affects the size of the electricity bill and the reliability of electricity supply.
What does the electricity contract include?
The electronic contract contains several important elements that it is good to understand before concluding the contract. These include:
- Price of electricity: The price of electricity can be fixed or variable. The fixed price remains the same throughout the contract period, while the variable price may vary according to market prices.
- Contract period: The contract period can be temporary or indefinite. A fixed-term contract binds both parties for a certain period of time, while an open-ended contract can usually be terminated with one month’s notice.
- Delivery terms: The terms of delivery define how and when electricity is delivered to the customer. This may include, for example, information about possible outages and their replacement.
- Additional services: Some electricity contracts may offer additional services, such as green electricity produced with renewable energy sources.
Different types of electricity contracts
There are different types of electricity contracts and they can be divided into several categories:
- Fixed-price electricity contract: This type of contract offers a stable price throughout the contract period, which makes budgeting easier.
- Market price electricity contract: In this contract, the price of electricity varies according to market prices, which can bring savings, but also risks.
- Environmentally friendly electricity contract: This contract guarantees that the electricity has been produced with renewable energy sources, such as wind or solar power.
How to choose a suitable electricity contract?
Choosing a suitable electricity contract depends on many factors, such as electricity consumption, budget and environmental values. Here are some tips for choosing a suitable electricity contract:
- Compare prices: Use comparison websites to find the cheapest electricity contract. For example, sahkonhinta.fi offers a comprehensive comparison of the prices of different electricity sellers.
- Estimate your consumption: Find out how much electricity you use monthly or annually. This will help you choose a contract that meets your needs.
- Note the contract period: Think about whether you want to commit to a long-term contract or whether you need flexibility.
- Check additional services: If environmental friendliness is important to you, choose a contract that offers green electricity.
Summary
The electricity contract is an important part of electricity consumption, and its choice directly affects the electricity bill and the reliability of electricity supply. There are different types of electricity contracts, and they can include a fixed or variable price, a fixed or open-ended contract period, and various additional services. Choosing a suitable electricity contract should be done carefully, by comparing prices and evaluating your own needs.
You can find more information about electricity contracts, for example, on Energiavirasto‘s website.
