Which contract should I choose?
You can compare the most common types of contract on Elpriskollen and hopefully find an electricity contract suitable for your particular situation. Here we describe how the different types of contract on Elpriskollen differ from each other.
With a fixed-price contract, you pay the same price per kilowatt hour throughout the tie-in period. This will suit you if you want to know in advance how much you will pay for your electricity each month. However, the amount on your invoice can still vary from month to month depending on how much electricity you use.
Elpriskollen compares fixed-price contracts with tie-in periods of 3, 4, 5 or 6 months and 1, 2, 3, 4 or 5 years.
If you have a fixed-term contract, your electricity supplier is obliged to inform you when the contract ends and what happens when the contract ends. This must take place no earlier than 90 days and no later than 60 days before the end of the contract.
It is important to choose a new contract within the so-called "period of notice" specified in the contract's terms and conditions, otherwise your existing electricity supplier will sign you up to a new electricity contract that may not meet your requirements.
Variable price ongoing (monthly basis)
With this contract, your price per kWh will change once a month. The contract follows the developments on the electricity exchange – both upwards and downwards. This will suit you if you can afford a price increase, but also want to benefit from any price decreases.
It is not permitted to offer variable electricity contracts with a tie-in period longer than three months to private individuals. However, if you want to sign an electricity contract for your company, you can compare variable electricity contracts with a one-year tie-in period.
How does a variable electricity price work?
If you choose a variable price, it follows the developments on the Nord Pool electricity exchange – both upwards and downwards. With a variable price, you benefit from market fluctuations and have a lower electricity price when prices are low or falling. But you must also be prepared for prices to rise quickly. In addition to the spot price on the electricity exchange, you pay a surcharge and VAT to the electricity supplier.
How is a variable electricity price calculated?
The bulk of a variable electricity price consists of the spot price. This is determined by the available supply of electricity, how many people want to buy electricity, and how much transmission capacity is available. Sellers and buyers meet on the Nord Pool electricity exchange in an auction where the electricity price is determined for each hour of the next 24 hours.
With the Variable price ongoing (monthly) contract, you pay an average of all hourly prices during the month, which means that you have the same price per kWh during all hours of the month. In addition to the spot price on the electricity exchange, you pay a surcharge and VAT to the electricity supplier. Here at Elpriskollen, we compare the prices that electricity suppliers invoiced their customers during the previous month.
Hourly rate contracts
If you choose a contract with an hourly rate, you pay for what electricity actually costs every hour on the electricity exchange, plus the electricity supplier's surcharge. This means that you have different electricity prices hour by hour and that your electricity cost depends on the time of day you use the electricity.
The advantage of an hourly rate contract is that you can reduce your electricity costs by moving electricity consumption from the most expensive hours of the day. Other advantages are that the electricity supplier's surcharge is often lower because the electricity supplier doesn't have to take into account the risk of the electricity price rising, and that as the customer you often have access to a more detailed picture of your electricity consumption via a web service or mobile application.
To maximise the benefits of the contract, you need to be able to move your consumption to the hours when the price is low. You can do this, for example, by automatically controlling your home heating or charging your electric car according to your hourly electricity price. An increasing number of electricity suppliers now offer technology and services for such smart control.
By adapting your electricity consumption to your electricity price hour by hour, you also unload the national electricity system when it is at its most strained, which ultimately contributes to lower costs for electricity trading and electricity distribution throughout society. The spot price on the electricity exchange is set 24 hours in advance, so you can see in good time when electricity is at its most expensive and cheapest in order to adapt your consumption. Many electricity suppliers that offer hourly rate contracts provide price information via a web service or mobile app, but you can also find the spot price on the Nord Pool electricity exchange Länk till annan webbplats..
With an electricity price hour by hour, you may also have cheaper electricity at weekends, as the overall demand for electricity is often lower then. There may even be individual hours during the year that have a negative electricity price.
Mixed price 1 year
This type of contract consists of an electricity price that changes once a month and is based half on a fixed price and half on a variable price. The tie-in period is 1 year.
You are assigned a designated contract if you do not actively choose an electricity supply contract. It is your electricity utility that refers you to an electricity supplier that in turn assigns you a designated electricity contract. You can be assigned a designated contract if, for example, you move house or if you do not choose a new contract when your fixed-term electricity contract ends.
A designated contract is often more expensive than if you actively choose to sign an electricity contract yourself. Elpriskollen recommends that everyone should make an active choice and choose their own electricity supplier and type of contract.