The time of choosing an electricity contract can have a noticeable effect on the consumer’s wallet.
Temporary the price of electricity contracts continues. According to the Energy Agency, among the contracts offered on Monday, electricity cost the cheapest at 10.85 cents per kilowatt hour.
The offer was Helen’s and it was valid for two years.
The prices of fixed-term contracts have dropped significantly in just weeks. Three weeks ago, in the cheapest contract, electricity was sold for 16.3 cents per kilowatt hour. Two weeks ago the cheapest price was 13.7 cents and a week ago 11.5 cents.
The electricity of the cheapest electricity contract is now more than 5.4 cents cheaper than three weeks ago. In percentage terms, more than 33 percent of the price has disappeared.
The monthly price of the cheapest contract with a monthly consumption of 500 kilowatt hours has decreased by 27 euros in three weeks. If the contract is valid for two years, there would be a difference of 648 euros in the electricity bills of the contracts.
The timing of contract selection can therefore have a large financial impact.
Temporary the cheaper electricity contracts are also clearly visible in the consumption behavior of Finns, as more and more people choose exchange-traded electricity when the fixed-term contract expires.
Read more: The popularity of exchange electricity is growing exponentially
For example, among the customers of Helen, owned by the city of Helsinki, 90 percent of such customers have chosen exchange electricity and about 10 percent a new fixed-term contract.
This is largely explained by the fact that exchange electricity has been cheap. In February, stock-exchange electricity has paid an average of 8.6 cents per kilowatt hour, including VAT. Even in December, electricity with taxes cost an average of 27 cents. In February, electricity on the exchange has so far been cheaper than a year ago in February.
The price has been weighed down by, among other things, cheap natural gas and a mild and windy winter. HS reported over the weekend that in January wind turbines produced more than a quarter of the electricity production in Finland, i.e. a total of 1,918 gigawatt hours. Only nuclear power plants produced more electricity, i.e. more than 2,300 gigawatt hours.
The previous wind power production record is from October, when wind power produced 1,455 gigawatt hours.
Read more: Wind power already produced almost as much electricity as nuclear power
Exchange electricity in addition to the affordability, the price reduction of fixed-term contracts also tempts you to wait before committing to a new contract.
For now, the electricity derivatives market also predicts that prices will remain moderate compared to, for example, December prices. It is possible that the derivative prices will decrease towards the summer. It would also mean that the price of fixed-term contracts would also decrease.
However, the prices of electricity derivatives should be interpreted with caution. During the energy crisis, derivatives have predicted the price development of stock exchange electricity more unreliable than usual.
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