What factors affect the electricity price?

As electricity is a commodity that is bought and sold on the market, its price is directed by supply and demand. Factors that affect the electricity price are, e.g., the weather, water conditions, disturbances in the production or distribution of electricity, and relevant events in world politics.

The electricity price is based on Nord Pool’s rate for the Finnish market, which varies on an hourly basis. Electricity prices also contain value-added tax as well as a margin of 0,400 c/kWh, which together make the price you pay for your electricity.

The price example in our product meter is calculated based on average spot prices for the past 12 months.

The VAT rate on electricity will be temporarily reduced from 24% to 10%. The VAT reduction only covers electricity not the transmission of electricity. The reduced VAT rate is valid on electricity consumed during the period 1.12.2022-30.4.2023. 

Your bill shows your average monthly price and the amount of energy consumed. The invoice also has the price of the energy itself, the share of the margin, and the basic payment of the contract separately.