Spot-price electricity or a fixed-price electricity contract?
Because electricity prices fluctuate, there is no single contract type that is right for everyone.
With a spot-price electricity contract, the energy price follows the market price. You can benefit from lower-price periods and reduce your costs by shifting your electricity use to cheaper hours. On the other hand, periods of higher market prices will also be reflected in your electricity bill.
With a fixed-price contract, the energy price is agreed in advance for the duration of the contract period. This makes your electricity bill easier to predict, but it also means you will not benefit from potential falls in the market price in the same way as you would with a spot-price contract.
That is why, when choosing a contract, it is worth asking yourself: Do I want to take advantage of market price fluctuations, or am I willing to pay more for price predictability?
Predicting electricity prices is difficult
Future electricity prices can be estimated based on factors such as futures prices, weather forecasts, water reservoir levels, and electricity production and consumption forecasts. However, no one can predict future electricity prices with complete accuracy. That is why it is not advisable to draw far-reaching conclusions based on a single price spike, one cheap week, or one forecast.
Since the energy crisis, the average market price of electricity in Finland has fallen significantly. At the same time, the market has become more volatile. The good news for consumers is that Finland is producing more electricity, while additional generation capacity, transmission capacity and flexibility are continuously being added to the electricity system. According to Fingrid, around €2 billion in investments in Finland’s main grid are planned for 2026–2029 alone.
Cheap Energy’s idea is simple
At Cheap, we believe that choosing an electricity contract should not be complicated.
We do not claim to know what electricity will cost on a freezing day next January. Instead, we follow the market and aim to offer electricity contracts at prices that are as competitive as possible.
In the end, electricity is electricity.
There is simply no reason to pay more for it than you need to.
