How does the electricity contract affect energy consumption?

The electricity contract is a key factor that affects the energy consumption of households and companies in many different ways. The choice of electricity contract can affect both directly and indirectly how much energy is used and how much is paid for it. In this article, we examine how the electricity contract affects energy consumption and which factors should be taken into account when choosing a contract.

Types of electricity contracts and their effects

First of all, it is important to understand that there are different electricity contracts, and they can affect energy consumption in different ways. The most common types of electricity contracts are:

• Agreement valid for the time being: This agreement is valid indefinitely and can usually be terminated with short notice. Prices may vary depending on the market situation.
• 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.
• Exchange electricity contract: The price is determined by the electricity exchange and may vary hourly. This agreement can encourage consumers to monitor the price of electricity and schedule their consumption for the cheapest hours.

Price mechanisms and consumption habits

The pricing mechanism of the electricity contract can significantly affect consumption habits. For example, a stock exchange electricity contract encourages consumers to monitor the price of electricity and to schedule the highest consumption for the hours when electricity is the cheapest. This can lead to more energy efficient behavior and lower electricity bills.

A fixed-term contract, on the other hand, offers stability and predictability, but does not necessarily encourage the timing of consumption in the same way as a stock exchange electricity contract. A contract that is valid for the time being can be flexible, but price fluctuations can make it more challenging to manage consumption.

Energy consumption monitoring and optimization

Many electricity companies offer their customers tools and applications that allow them to monitor their own energy consumption in real time. With these tools, consumers can gain a better understanding of when and how they use electricity and make the necessary changes to their consumption patterns.

For example, smart electricity meters and consumption monitoring applications can help identify energy-hungry devices and optimize their use. This can lead to significant savings in the long run.

Environmental effects

Choosing an electricity contract can also have environmental effects. Many electricity companies offer green electricity contracts where electricity is produced with renewable energy sources such as wind or solar power. By choosing a green electricity contract, the consumer can reduce his own carbon footprint and support more sustainable energy production.

Summary

The electricity contract affects energy consumption in many different ways. The type of contract, pricing mechanisms and monitoring tools available can all affect how much electricity is used and how much is paid for it. In addition, choosing an electricity contract can have significant environmental impacts. It is important to compare different contract options and choose the one that best meets your needs and values.

For more information on electricity contracts and their effects, you can find, for example, Energiavirasto and Motiva‘s website.