Electricity transmission price: why transmission costs money and what an electricity bill consists of

The four parts of an electricity bill

An electricity bill is divided into two main parts: the electrical energy charged by the electricity supplier, and the network service, or transmission, charged by the network company. The network company also bills electricity tax along with transmission. VAT of 25,5 % is added to all parts.

For some customers, energy and transmission come on the same bill, but they are still services from different companies. You can freely choose your electricity supplier, but not your network company.

The weight of the components depends on consumption. In price statistics, a typical user in a block of flats consumes about 2 000 kWh a year, a detached house with an electric sauna but without electric heating 5 000 kWh, and a detached house with direct electric heating 18 000 kWh. With low consumption, the monthly basic charges make up a large share of the bill; with high consumption, the per-kilowatt-hour charges do.

Electrical energy: supplier's energy charge (c/kWh) and basic fee (€/month)
Distribution, i.e. network service: the network company's basic fee and distribution fee
Electricity tax and security of supply fee: 2,325 c/kWh excluding VAT from 1.4.2026
Value added tax 25,5 % on all of the above

How much of the bill is transmission

According to the Energy Authority, the total price of electricity for a household using 5 000 kWh a year was on 1.11.2025 on average 20,86 c/kWh. Of this, the electricity energy share was 9,45 c/kWh and transmission including taxes 11,41 c/kWh. The annual bill of such a household was on average 1 043 €.

Converted to euros, a 5 000 kWh household therefore paid about 470 euros a year for electricity energy and about 570 euros for transmission including tax. The electricity tax alone, at the tax that took effect on 1.4.2026 including VAT, is about 2,92 c/kWh, or with the same consumption about 146 euros a year.

For an electric heater user with consumption of 18 000 kWh a year, the total price was 15,55 c/kWh: energy 7,94 c/kWh and transmission including tax 7,61 c/kWh. The annual bill averaged 2 800 euros. The higher the consumption, the smaller the share of fixed basic fees per kilowatt hour.

According to the Energy Authority, tax-free transmission prices for households rose by about 10 % in 2020–2025. In 2025, transmission prices for households with electric heating rose by 0,8 % and those of other households fell by 0,4 %.

Why transmission cannot be put out to tender

The electricity grid is a natural monopoly: it makes no sense to build parallel networks in the same area. That is why the network company is determined by where you live, and the customer cannot switch it.

The Energy Authority supervises that network companies' pricing is reasonable. The reasonableness of prices is assessed with supervision methods that the Energy Authority confirms in advance. If you suspect your own network company's pricing, you can read the Energy Authority's frequently asked questions on network service charges and contact the agency.

The transmission system operator Fingrid's charges also pass through the network companies into customers' transmission prices. Fingrid is raising its grid service charges by 4% from the start of 2027.

A network company must notify its customers of price changes in advance. When you receive a notice of a rise in the transmission price, also compare whether another transmission product from the same network company would be cheaper for your own consumption.

Distribution products: general, time-of-use and seasonal distribution

Many network companies offer several transmission products. With general transmission the transmission charge is the same regardless of the time of day. With time-of-day transmission, electricity transmitted at night is cheaper than during the day, and with seasonal transmission the price also depends on the time of year.

The choice of product should be based on your own consumption profile. If a large share of consumption, such as storage heating or electric car charging, falls at night, a time-of-use product may be cheaper. Check the options and their terms in your own network company's price list.

How to reduce the bill even if you cannot change the transmission

Because the transmission fee and electricity tax are charged on every kilowatt-hour, reducing consumption lowers all the variable parts of the bill at the same time. Saving energy is therefore the most effective way to influence the euro amount of transmission.

You can compare offers for the electrical energy portion on the Energy Authority's sahkonhinta.fi service. You can see hourly data on your own consumption in Fingrid's My Datahub (Oma Datahub).

Check your annual consumption and when you consume the most in Oma Datahub.
Compare your network company's transmission products with your own consumption profile.
Put out your electricity for tender if your contract is open-ended.
Reduce the biggest loads, such as heating, hot water and the sauna.

Where to get help

In case of problems with billing and contracts, a consumer can first contact their own electricity company and then the Finnish Competition and Consumer Authority (KKV) consumer advisory service. In the Energy Authority's electricity price statistics you can see network-company-specific transmission prices and average prices by typical user. Electricity Price Radar brings together the structure of the bill and current prices.

Frequently asked questions

Can I change my electricity distribution company?

You cannot. The network company is determined by where you live, and the Energy Authority supervises the reasonableness of its pricing. Only the electricity seller can be tendered.

How much is electricity tax in 2026?

The electricity tax for households (tax class I) is, from 1.4.2026, 2.325 c/kWh excluding VAT, including the security of supply fee of 0.085 c/kWh (Finnish Tax Administration (Verohallinto)).

Why does transmission cost more than the electricity?

Distribution includes the network company's fees and the electricity tax. According to the Energy Authority, for a household consuming 5 000 kWh, distribution including taxes averaged 11,41 c/kWh and energy 9,45 c/kWh on 1.11.2025.

Electricity Price Radar brings together the topic's figures, deadlines and services. Open Electricity Price Radar →

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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.