On Friday, electricity is unprecedentedly expensive in Finland, and at the same time, the popularity of exchange-traded electricity has become exceptionally high. Now many are wondering how they dare to let their own home get cold on Friday, writes Joonas Laitinen, news producer of HS's financial department.
in Finland we are now living in exceptionally electronic days. The grid company Fingrid sent a petition in which it asked Finns to reduce their electricity consumption during the morning and evening peak hours from the end of the week. On Thursday afternoon, it said it would raise its readiness until further notice.
“Currently, there is enough electricity. However, the situation is very sensitive to unexpected failures in the electrical system and therefore the situation can change quickly. Fingrid monitors the situation closely and updates situation assessments if necessary,” Fingrid wrote in its afternoon announcement.
It's about is a rare act.
There is reason for the request, because on Wednesday Finland used more electricity in one day than ever before.
The reason for the high consumption is the unusually long period of severe frost.
On Friday, the cold will really hit Finns' wallets as well, when the price of electricity rises to a record high. Electricity, including VAT, costs an average of 1.1 euros per kilowatt hour. Electricity has never been nearly as expensive before. The price is almost 16 times the average price of 2023.
The most expensive exchange electricity is on Friday between 19:00 and 20:00, when electricity costs EUR 2.35 per kilowatt hour including VAT.
So the price for an hour's Friday sauna will easily be more than 10 euros.
Exchange electricity popularity has skyrocketed since the 2022 energy crisis skyrocketed the price of fixed-term electricity contracts.
HS reported before Christmas that the popularity of exchange-priced electricity contracts seems to have more than doubled during 2023.
According to a survey conducted by the electricity sales company Nordic Green Energy's Taloustuikmaus, 29 percent of Finns currently have an exchange electricity contract. At the end of 2022, according to data collected by the Energy Agency, the share of exchange electricity contracts was 14 percent of all retail electricity contracts.
Exchange electricity users have been able to experience the market risks brought by stock exchange electricity in their entire extreme spectrum in recent months.
At the end of November, the price was 50 cents in the freezing cold during one Friday night for several hours due to an incorrect offer made by the Norwegian company Kinect Energy. At that time, several exchange electricity users were able to reduce their electricity bill by using as much electricity as possible. Electricity consumption rose exceptionally high on that Friday evening.
This week on Friday, exchange electricity users will face a completely different reality. The price is extremely high, and at the same time it is at least 20 degrees below zero outside the country.
Even the use of ordinary household appliances is really expensive on Friday, but electric heaters in particular are on the verge of an extreme test. Right now, many are feverishly thinking about how cool they dare to let their own home get.
In the light of history, exchange electricity has clearly been the cheapest form of contract. Days like Friday show that it also has its risks. Friday is, especially for those who have recently switched to the contract model, the ultimate test of how well exchange electricity suits your wallet. For some, the day can become really expensive.
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