Switching electricity contract: how to compare and switch electricity companies

What can you put out to tender in an electricity contract?

An electricity bill consists of electrical energy, electricity transmission and taxes. Only electrical energy, that is the electricity supplier, can be put out to tender. Transmission is always handled by the local network company of the area and cannot be switched to another.

From the supplier you can choose, for example, an open-ended or fixed-term contract and a fixed price or spot-price electricity. In addition, offers often include a monthly basic fee, which is worth including in the calculation, especially if consumption is low.

Compare offers in the sahkonhinta.fi service

The Energy Authority maintains the free sahkonhinta.fi comparison service. In the service you enter your postcode and an estimate of annual consumption, which you can find, for example, on your latest electricity bill. Offers are ranked by estimated annual cost, and they can be filtered, for example, by production method and metering method.

The contract is not made in the comparison service but directly in the electricity seller's online service or through customer service. Before signing, check how long the offer is valid and make sure the price you compared includes the basic fee.

How the switch proceeds

A new contract is best made at least two weeks before the desired start date. According to the Energy Authority, the new supplier takes care of terminating the old contract, so the consumer usually does not need to contact the old supplier.

Your electricity will not be cut during the switch, and the meter does not need replacing. The previous supplier sends a final invoice for the period of the old contract.

Check the type of your current contract and its possible end date
Find out your annual consumption from your previous bill
Compare offers and read the contract terms
Make the contract with the new seller at least two weeks before the start

Open-ended or fixed-term agreement?

According to the Finnish Competition and Consumer Authority, an open-ended agreement can be terminated with two weeks' notice unless otherwise agreed. The seller's notice period cannot be shorter than this. The seller can change the price of an open-ended agreement, but the change can take effect at the earliest one month after the notification is sent.

A fixed-term agreement is most commonly made for one or two years and binds both parties. As a rule it cannot be terminated mid-term. Exceptions include moving house, in which case either party can terminate the agreement with two weeks' notice unless otherwise agreed, and a significant change in electricity needs, for example due to serious illness. An agreement longer than two years can be terminated after two years with two weeks' notice.

If a fixed-term contract is terminated without an acceptable reason, the seller may charge a reasonable contractual penalty, but only if it has been agreed in the contract terms. After the fixed term ends, the contract usually continues as valid until further notice, unless otherwise agreed.

Consumer rights and getting help

An electricity contract made by phone can be cancelled within 14 days. If the seller sends a confirmation or invoice even though you have not accepted the contract, you can dispute the contract later too and also notify the network company.

According to the Consumer Disputes Board's guidance, a price increase in a contract in force until further notice is generally unreasonable if it exceeds 15 % a year and, at the same time, €150 a year. Each network area also has a default supplier, which must sell electricity to households on public and reasonable terms.

If you disagree with the seller, first contact the seller. After that, help is available from the Finnish Competition and Consumer Authority (KKV) consumer advisory service, and the dispute can be taken to the Consumer Disputes Board for a ruling.

What should you check in the contract terms?

The cheapest price in a comparison does not always mean the most affordable contract. Read the contract terms before committing, and pay particular attention to how and when the price can change.

If your own supplier ceases operations, your electricity will not be cut off immediately. The network operator must give notice at least three weeks before supply ends, so there is time to make a new contract.

Contract duration and what happens when the fixed term ends
Monthly basic fee and energy price separately
The seller's margin on spot electricity, i.e. the addition to the spot price
Notice period and possible contractual penalty
Billing method and any billing surcharges

Frequently asked questions

Does changing your electricity company cost anything?

Changing supplier does not cost anything in itself. However, you may have to pay a reasonable contractual penalty for terminating a fixed-term contract early, if this has been agreed in the contract terms.

How quickly can an electricity contract be switched?

The Energy Authority advises making a new contract at least two weeks before the desired start date. The notice period for an open-ended contract is usually two weeks.

Can a fixed-term electricity contract be terminated because of moving?

Yes. When moving, either party can terminate the contract with two weeks' notice, unless otherwise agreed. The seller may also agree to transfer the contract to the new address.

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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.