Comparison shows market electricity cheaper for homeowners in Finland

In September, a comparison was made to determine whether market electricity or fixed-rate contracts were cheaper over the year. The results were clear: market electricity proved to be more economical. However, some criticized the calculation as overly simplistic and pointed out that it did not take into account seasonal variations in energy consumption, particularly between winter heating periods and summer months. Homeowners who rely on electric heating can clearly see these discrepancies in their bills.

This prompted a new comparison that considers monthly electricity consumption variations and different house sizes. Utilizing data from Statistics Finland related to the electricity consumption of small homes for the European Green Deal project, the analysis focused on three different houses. Two calculations were created for each: one based on the average monthly prices of market electricity from January to December 2023 and another using the cheapest current fixed-rate contract.

The smallest house, approximately 80 square meters, primarily heats with wood, while the medium-sized house (about 120 square meters) also uses firewood. A larger house, either a 200-square-meter structure or one heated entirely by electricity, represents a segment that consumes the most electricity.

Results showed that the average household’s market electricity cost for the year was €855, compared to €1,018 for the cheapest fixed-rate option. The findings confirmed that, throughout the year, market electricity remained cheaper, with fixed rates only outperforming it in specific months, such as February and December, with marginal differences.

This analysis underscores the impact of seasonal trends and market conditions on electricity pricing, highlighting the advantages of market electricity for homeowners, especially those with electric heating.