Consumption effect – what it means and how it affects your electricity bill?
The consumption effect can lower or raise your electricity bill. On this page we go through what the consumption effect is about and how it shows on your bill. You can also see how your consumption would have affected your electricity bill with different contract types.
Stable+
Prices incl. VAT 25,5 %
The consumption effect lowers or raises your electricity bill
The consumption effect arises from when you use electricity. If you use electricity when the market price (spot) is low, your bill goes down slightly. If you consume the most during the expensive hours, your bill rises slightly. So the price varies according to when you use electricity – not just on how much.
Last winter, 92 % of our Stable+ customers reached a consumption effect within +/– 1.5 c/kWh. You can check your own consumption effect in MyHerrfors.
How the consumption effect is calculated
The consumption effect is calculated based on the amount and timing of your consumption and the spot price at each moment:
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Metering data is collected
We work out how much electricity you used at each time.
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Your own Spot price is worked out
Each 15-minute period is priced according to the market price of electricity (spot) at that moment.
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Compared with Finland’s average Spot price
These prices are compared with the average price for the whole month, and the consumption effect is formed from the difference.
The final price is made up of three parts
The final price shown on your electricity bill is formed when the consumption effect is subtracted from or added to the fixed-price portion. If you used electricity during hours cheaper than the average price, the consumption effect is negative, which shows as a lower electricity bill. If you used electricity during more expensive hours, the effect is positive, which in turn increases your electricity bill.
- Fixed price – stays stable from month to month
- Basic charge – a fixed monthly fee
- Consumption effect – varies depending on when you have used electricity
If the consumption effect is negative, your bill goes down. If positive, your bill goes up. You can see the consumption effect itemised directly on your bill.
How you can influence the price of your electricity bill
- Follow market prices in the Herrfors app or on the website.
- Avoid expensive Spot hours – especially the morning and evening consumption peaks are often more expensive.
- Schedule e.g. heating, laundry and electric-car charging for cheaper hours.
- You’ll see the effect directly on your next bill.
See your own consumption effect in MyHerrfors
Whatever contract you have – you can review your actual consumption effect in MyHerrfors on a monthly level.
Stable+
Stable+ is a good choice if you can time your electricity use – such as heating or electric-car charging – to cheaper hours. You get the security of a fixed base price, but you also benefit when you consume at the right time.
Stable+
Prices incl. VAT 25,5 %
How exactly is the consumption effect calculated?
The consumption effect tells you whether you bought your electricity more cheaply or more expensively than average spot price in Finland for the month.
Your consumption-weighted spot price
For each 15-minute period, consumption is multiplied by the spot price at that moment. The sum is divided by total consumption.
Herrfors first calculates your consumption-weighted spot price. It tells you at what price levels you used electricity during the month. If you charged your car cheaply at night, it pulls the price down. If you kept the sauna hot on a freezing weekday morning, it pushes the price up.
Consumption effect
Finland’s average spot price is subtracted from your own consumption-weighted spot price. The difference is your consumption effect.
This is then compared with the even average of Finland’s spot prices – a price where every hour weighs the same regardless of how much electricity was consumed at that time.
Billing price
The consumption effect is added to the fixed price. This gives the final billing price.
If the consumption effect is negative, your bill goes down. If positive, your bill goes up slightly. You can see the consumption effect itemised directly on your bill.
Frequently asked questions
The consumption effect arises from when you use electricity relative to the month’s average spot price. Consuming during cheaper hours lowers your bill; consuming during expensive hours raises it slightly.
You can review your actual consumption effect in the MyHerrfors portal. Log in and go to your consumption data – there you’ll see the consumption effect itemised on a monthly level.
The variation depends on the consumption behaviour at your place of use. Last winter, 92 % of our Stable+ customers reached a consumption effect within +/– 1.5 c/kWh.
Yes. With the Spot+ contract, the timing of your electricity use affects the total cost of electricity, because the market price of electricity varies in 15-minute periods. However, the Spot+ contract does not calculate a separate consumption effect; instead, the price of electricity is determined directly by your actual quarter-hourly consumption and the prices in force.
If you have made a price fixing, the fixed portion of your consumption is priced at the agreed fixed price. Consumption outside the fixing is priced according to the prevailing spot price.
Yes. If you want a predictable price without variation, Stable is the best choice. If you want to benefit from electricity’s cheaper hours, Stable+ or Spot+ suit you – especially if you can time your consumption flexibly.
Need help with your electricity contract?
If you’re not sure which contract suits you best, our customer service is happy to help. You can sign an electricity contract online, by phone, and also by visiting us in person. Welcome!
