Lumo Energia

Compare electricity plans to save money – 75% of our customers received direct savings

Electricity companies offer different types of plans or contracts to their customers at different prices, which can be confusing. However, comparing electricity contracts is fairly simple and easy, as long as you keep in mind a few basic things.

Your total electricity costs consist of the price of electricity itself as well as transmission of said electricity. Electricity transmission cannot be put out to tender, whereas electricity sales can – and should. Electricity is procured from the power exchange, where the price of electricity varies according to supply and demand. Therefore, the forecasts for the price of electricity and with it the offers sometimes change even on a fast schedule.

The electricity price is offered in cents and the difference between the offers might not seem that big, but the higher the consumption in your apartment, the more the cents grow in importance. The comparison of contracts is thus worthwhile, even if it feels cumbersome: 75% of our customers said they had made direct savings by switching to Lumo Energia*.

There are different types and prices of contracts on the market that may seem difficult to compare at first. Below, you will read about some basic things that are worth to consider when comparing contracts.

 

The annual consumption estimate makes comparison easier

The simplest way to compare electricity plans is the price of the contracts. If you don’t know what the current price level for electricity is, it can be difficult to estimate what you should pay. If this is the case, start by checking the prices of different electricity companies. You can use various comparison sites to help.

Use an annual consumption estimate, when you want to check what you pay for electricity per year with your current contract and what you would pay at the new price. Your current annual consumption estimate should always be found on your electricity company's invoice.

If, on the other hand, you are moving into a new flat, you can roughly estimate the annual consumption of the future apartment according to its size. For example, a smaller flat has an average of about 1,400 kWh/year, while a larger flat has about 3,000 kWh/year. In a row house (rivitalo), the consumption of electricity is slightly higher than in a similar sized apartment. In an electrically heated detached house the consumption can be about 20,000 kWh/year.

 

Compare basic fees for electricity contracts

The basic monthly fee is the single largest variable in the price of an electricity contract. The basic fee can be as high as five euros, which amounts to more than fifty euros a year.

Especially when consumption is low, and the electricity bill is small, it is worth noting that the basic fee can account for up to half of the total electricity bill. You save money by choosing an electricity contract where the basic fee is reasonable or if you can find a contract without a basic fee.

 

Always compare plans of the same type

When comparing electricity contracts, be sure to compare similar types of plans. There is no point in comparing prices alone if the terms of the contracts or the pricing differ significantly. Pay attention to whether e.g. the announced price is valid for a certain period of time, and what the price will be after a possible offer period. Keep your own needs and electricity usage in mind when comparing. Do you need to have a predictable electricity bill, or do you want the cheapest electricity?

Note! Make sure to also compare the origins of electricity. When choosing renewable energy, the electricity price may be a little higher, but if you feel it matches your values, you should consider whether you are willing to pay an extra euro or two a month. An electricity contract that seems cheap can be expensive for the environment.

What are the main differences between different types of electricity plans and what kind of contract suits you? Read on to find out.

 

An ongoing electricity plan give you electricity at the current price

An electricity contract that is valid for the time being is your choice when you need a flexible and continuous contract. Our ongoing variable contracts are based on exchange-traded electricity with a variable electricity price.

Pros and cons with a variable price are that the price is always up to date, there is no long termination period nor a fixed-term, but the price changes monthly (or hourly). Sometimes it rises quickly, only to perhaps drop the very next day. It is as its name: variable.

Note! The final electricity price for the consumer, when choosing an ongoing contract with a variable electricity price, depends on the electricity company's margin and basic monthly fee.

Ongoing variable electricity contracts are particularly suitable when you have a low-consumption, e.g. if you live in a smaller flat. This type of contract is also good if you want to monitor the electricity price level and adjust your own usage (e.g. heating the house or doing laundry when electricity is cheaper).

Markkina Plus (price determined by monthly average) or Tuntispot (price determined by the hours) are Lumo Energia's ongoing variable contracts.

 

A fixed-term electricity contract evens out variations

Fixed-term plans are tied to a specific period of time. A fixed-term contract also means a fixed electricity price per kilowatt hour (kWh) for the electricity you use – regardless of whether you consume a lot or a little or if the electricity prices on the electricity exchange go up or down.

The prices of fixed-term contracts are based on how the price of electricity is forecast to develop during the contract period. Therefore, time periods differ in lengths as well as in price, and often a shorter fixed-term may be cheaper than a long one. A fixed-term contract made at the right time protects you from price fluctuations.

Pros of a fixed-term contract is that you have control every month of how much you have to pay for your energy consumption. If you have large fluctuations in your consumption, your electricity bill will of course vary at the end of the month, but in general a fixed electricity price makes it easier for you to predict your costs.

Fixed-term contracts are suitable for high consumption, e.g. when you live in a detached house or villa and need to know your monthly energy costs beforehand.

Note! Most fixed-term contracts come with a monthly basic fee. Sometimes it can be better to take a higher kilowatt-hour rate without a basic fee, instead of opting for a contract with lower kilowatt-hour rate but with a basic fee. Calculate on the basis of your annual consumption estimate which of the contracts will be cheaper for you!

Electricity is never cut off at the end of a fixed-term contract. When your contract ends it is a good moment to compare and re-tender it. At Lumo Energia, we will automatically send you a new offer for an extension at least one month before your contract ends, giving you plenty of time to compare different contracts.

 

When you have to compare electricity contracts, remember to:

  • compare similar types of electricity plans (variable rate vs fixed-term)
  • check if prices include offer periods
  • compare the origins of electricity
  • with a free monthly basic fee, you save tens of euros a year

 

Ongoing variable plans

  • the price of electricity varies according to stock exchange prices
  • the contract may be terminated with only 14 days' notice
  • especially suitable for low consumption and if you want to monitor and control your own consumption

 

Fixed-term plans

  • the price of kWh of electricity does not change during the fixed contract period
  • the contract period is binding for both the seller and the customer
  • especially suitable for high consumption, when you need to be able to predict your energy costs

 

*Lumo Energia's customer survey

 

Add EKOenergy
for only 1,39 cnt/kWh*

*additional cost in apartments c. 2–3 €/month

Read more

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.

More articles

FAQ

Kuinka vertailla sähkösopimuksia?

Kun vertailet sähkösopimuksia, vertaile aina samantyyppisiä sopimuksia keskenään. Ota huomioon hintojen mahdolliset tarjousjaksot ja se, miten sähkö on tuotettu. Vertaa sekä perusmaksut että kilowattitunnin hinta. Voit vertailla sähkösopimuksia sähköyhtiöiden sivuilla tai vertailupalveluissa. Esimerkiksi Energiavirasto tarjoaa vertailupalvelun osoitteessa sahkonhinta.fi.

Tarvitsenko vuosikulutusarvion, kun vertailen sähkösopimuksia?

Vuosikulutusarvio ei ole välttämätön, mutta siitä voi olla hyötyä, kun vertailet sopimuksia. Jos olet tekemässä sähkösopimusta esimerkiksi kerrostaloasuntoon, jossa ei kulu paljon sähköä, vuosikulutusarviolla ei ole vertailussa niin suurta merkitystä toisin kuin silloin, jos olet tekemässä sopimusta esimerkiksi sähkölämmitteiseen omakotitaloon, jossa sähköä kuluu paljon.

Mikä on sähkön vuosikulutusarvio kerrostaloasunnossa? Entä rivitaloasunnossa tai omakotitalossa?

Sähkön vuotuinen kulutus vaihtelee paljon asunnon koon, asukkaiden määrän, asunnon lämmitysmuodon ja varustelun sekä asukkaiden sähkönkulutustapojen mukaan. Kerrostaloasunnon vuotuinen sähkönkulutus voi olla n. 1 400–3 500 kWh, rivitaloasunnon n. 3 000–12 000 kWh ja omakotitalon n. 7 000–19 000 kWh.