Lumo Energia

What does a variable electricity price mean?

A variable electricity price or exchange-traded electricity is an electricity contract that follows the price level on the Nordic electricity exchange Nordpool. In the long run, a variable electricity price is statistically a cheaper alternative.

 

Daily price, market price, variable price, stock market price, spot price…

On the electricity exchange, the electricity trader buys electricity at a daily price, spot price, and then sells it on to his customers. The purchase price for electricity varies depending on supply and demand and affects the price that the electricity trader in turn charges the customer – it is thus a variable price that goes up and down and fluctuates every hour and month. However, the spot price on the Nordic electricity exchange Nord Pool is not directly the same as the electricity price to the consumer, but it can be classified as a guiding price. Nord Pool's spot price does not include e.g. taxes or transmission prices on electricity networks.

 

What is it that affects the stock market price?

The spot price is set hour by hour according to supply. If there is a large supply of energy on the market, e.g. it has been a windy or rainy autumn, the spot price will fall, but also the opposite – if the supply is weaker, the price rises easily. A customer who buys electricity at a fixed price does not notice the rising electricity prices, but also does not benefit when they fall.

 

Who is a variable electricity plan suitable for?

An electricity plan at a market price is suitable when you live in a small apartment or have lower energy consumption. Our variable plans are continuous and have only two weeks' notice. You can also easily switch to a fixed-term electricity contract if it feels safer and more stable!

Did you know? Statistically, variable contracts are the cheapest in the long run.

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Recommend us to your friend, you will both get 10 €

As our customer, you now have a unique opportunity to give your friends a valuable discount – and enjoy the same yourself! When you recommend us to a friend, you will both receive a 10 euro refund on your electricity bills.

83.2% of our customers would probably or very likely recommend us to an acquaintance.

Once you have signed an electricity contract with Lumo Energia, you can log in to Oma Lumo and find your code to give to your friends.

Lumo Energia

Lumo Energia is an electricity company founded in 2015 in Vallila, Helsinki. Almost 70,000 Finns have already chosen us as their electricity company. 97.3% of our customers found it easy to change their electricity contract and 76.1% got direct savings by switching to Lumo Energia. Make the best electricity contract for you and become one of our satisfied customers.

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FAQ

Why should you choose a variable price?

With an variable priced electricity contract, you always get electricity at the current price – so you don't pay too much for your electricity as can happen when you have a fixed-price contract. When you buy electricity at a variable price, you can steer your consumption to cheaper hours and thus directly affect the amount of the electricity bill. In the long run, a variable priced electricity contract has been cheaper than fixed-term contracts.

Is a variable electricity price cheap?

According to statistics, a variable priced plan has been a cheaper alternative than fixed-term electricity plans. As a consumer, you must be prepared for the ups and downs in the price of electricity, but in the long run it has nevertheless become more profitable.

What does a variable price mean?

Variable priced electricity is electricity purchased at market price from the Nordic power market Nord Pool. The consumer usually pays for market electricity according to either an hourly variable spot price or the average monthly price. VAT and the seller's margin are added to the spot price in the Finnish price area announced in Nord Pool.