How do electricity contracts affect the household budget?
Electricity contracts are a significant factor in the household budget, as they directly affect monthly expenses. The price of electricity and the type of contract can vary greatly, and understanding these factors will help you manage your finances better. In this article, we look at how electricity contracts affect the household budget and what things should be taken into account when making a contract.
Types of electricity contract
The first step in understanding the effects of an electricity contract is to know what types of contracts are available. The most common types of electricity contracts are:
- Fixed-term contract: This contract is valid for a certain period of time, usually 1-2 years. The price is fixed throughout the contract period.
- Agreement valid until further notice: This agreement is valid until further notice and can usually be terminated with one month’s notice. The price may vary depending on the market situation.
- Exchange electricity contract: The price of electricity is determined by the electricity exchange and can vary hourly. This deal can be affordable, but there is a risk of price fluctuations.
Impact of the price of electricity on the budget
The price of electricity consists of several different factors, such as the price of energy, transmission fees and taxes. The combined effect of these factors determines how much a household pays for electricity every month. Fluctuations in the price of electricity can significantly affect the budget, especially in the winter months, when electricity consumption is usually higher.
Tips for choosing an electricity contract
In order for the electricity contract to be as affordable as possible and fit into the household budget, you should consider the following points:
- Comparison: Compare offers and contract types from different electricity vendors. Several websites offer easy tools to do this. For example, Sähkönhinta.fi is a good place to start.
- Consumption habits: Estimate your household’s electricity consumption and choose the contract that best meets your needs. If consumption is constant throughout the year, a fixed-price contract can be a good choice. If the consumption varies a lot, a stock exchange electricity contract may be cheaper.
- Environmental: If environmental issues are important, choose a green electricity contract where electricity is produced with renewable energy sources. This may be a bit more expensive, but it supports sustainable development.
Summary
Electricity contracts have a significant impact on the household budget, and choosing the right contract can bring significant savings. It is important to compare different types of contracts and offers from electricity sellers and take into account your own consumption habits and values. This way you can ensure that the electricity contract is both an economically and ecologically sustainable choice.
You can find more information about electricity contracts and their effects on the household budget, for example, on Energiavirasto‘s website.
