Electricity price in winter: why spot electricity gets more expensive and how to prepare

Consumption rises in frosty weather

In winter, electricity is needed for heating, lighting and district heat production. According to Finnish Energy, 9,6 terawatt hours of electricity were used in January 2026, about 13 per cent more than a year earlier, and the previous monthly record from 2010 was broken. The reasons were exceptionally cold weather, consumption by electrically heated homes and the electric boilers producing district heat.

According to Fingrid, Finland's electricity consumption record, 15 609 megawatts, was measured on Thursday 8.1.2026 at 17–17.15, when the consumption-weighted temperature was about –20 degrees. When consumption peaks, more expensive production sources are also needed, which raises the price.

Wind power makes a big difference

The share of wind power has grown rapidly. According to preliminary data from Finnish Energy, wind power produced a total of 22.1 terawatt-hours in 2025, which was 26.1 percent of Finland's electricity production, and capacity at the end of the year was 9,433 megawatts. On windy days the electricity price is often close to zero.

The problem in winter is hard frost during high-pressure spells, when there is often little wind. According to Finnish Energy, a high-pressure system brought a windless cold spell in late January 2026, and it was covered by electricity from combined heat and power plants, whose output grew by 46 per cent. When cold and calm weather coincide, prices rise most readily.

Power plant maintenance and faults

Maintenance of a large power plant or an unexpected fault reduces supply and can quickly raise the price. According to Pohjolan Voima's half-year report, the annual outage of Olkiluoto 3 was moved in 2026 from spring to autumn. It is worth taking the timing of outages into account when following prices, but the situation of individual plants can change quickly.

According to the winter assessment published by Fingrid on 24.9.2026, the power system can withstand the failure of one large power plant or cross-border line without endangering the adequacy of electricity. Fortum intends to return the Meri-Pori coal power plant to the market temporarily in early 2027.

Transmission links and imports

On the very coldest days Finland cannot produce all the electricity it needs itself. According to Fingrid's winter forecast, on a very cold and calm winter day consumption can be about 15 200 megawatts, while domestic production covers at most about 12 000 megawatts. About 3 200 megawatts must be imported from Sweden and Estonia, which requires the transmission connections to work normally.

According to Finnish Energy, in January 2026 1,7 terawatt-hours of electricity were imported from Sweden, almost three times as much as a year earlier, and net imports covered about 12 percent of consumption. If a cross-border line has failed or is under maintenance, import capacity falls and prices can differ clearly from neighbouring countries.

What realised prices tell you

According to Pohjolan Voima's half-year report, the average Finnish area price in January–June 2026 was 71.1 euros per megawatt hour, or about 7.1 cents per kilowatt hour excluding value added tax. The average for the same period a year earlier was 38.6 euros per megawatt hour. According to Fingrid, at the moment of the consumption record on 8.1.2026 the day-ahead market price was 92.4 euros per megawatt hour.

The figures are actual outcomes, not forecasts. The price next winter depends on the weather, wind and the availability of power plants and cross-border lines. Fingrid estimates that adequacy will be at the same level as last winter if major faults are avoided.

Value added tax and the electricity bill

The general VAT rate is 25.5% from 1 Sept 2024, and it applies to electricity. Exchange prices are usually quoted without tax, so the energy price paid by a consumer is about a quarter higher. For example, a tax-free kilowatt-hour price of 10 cents becomes 12.55 cents with VAT. The bill also includes the seller's margin, electricity tax and transmission fee, which are covered in the other guides of the Electricity Price Radar.

How to prepare for winter

According to Fingrid, high prices encourage shifting consumption away from the most demanding hours. A 15-minute trading period has been used in the day-ahead market since 1.10.2025, so the spot electricity price varies every quarter of an hour. Fingrid's free Hourly Price app shows the next day's prices after about 14.30 and can alert you when the price exceeds a limit you set.

Schedule laundry, dishwashing, electric car charging and water heater heating for the cheap hours.
Avoid the highest consumption on frosty mornings and early evenings, when consumption is often at its peak.
Track your own consumption in Fingrid's Oma Datahub service.
Compare contracts in the Energy Authority's sahkonhinta.fi service and consider whether spot-price electricity or a fixed price suits your situation.
If you have difficulty paying your electricity bill, contact your supplier in good time.

Frequently asked questions

Why is spot-price electricity more expensive in winter than in summer?

Consumption rises because of heating, and on cold days the wind is often weak. Imports and the availability of power plants also affect supply. When demand is high and supply is scarce, the price rises.

How much will electricity cost this winter?

The future price cannot be known in advance. As an outturn reference, the Finnish area price averaged 71.1 €/MWh excluding VAT in January–June 2026, according to Pohjolan Voima.

Is VAT of 25.5 % charged on electricity?

Yes. The general VAT rate has been 25.5% since 1.9.2024, and it is added to the energy price, transmission and electricity tax.

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Sources

The article is general information and does not replace the guidance of an authority, a lawyer or an adviser. Check up-to-date information from the sources.