January 2026 bills led many consumers to question why their electricity bills were significantly higher than usual. The answer lies in the combined effect of weather conditions, consumption habits and energy production.
According to data from the Environment Agency, January 2026 was one of the coldest in the past 25 years. This significantly increased households’ heating needs and electricity consumption compared with December. Due to increased consumption, the average electricity exchange price in Estonia rose by as much as 110% in January compared with December, reaching 15.4 cents per kilowatt-hour. So far, the average exchange price in February has remained similar or has been even higher.
While consumers cannot control the weather, they can influence other factors to some extent. Santa Tohver, Head of Estonian Market at Enefit, shares five recommendations on how to reduce your electricity bill.
1. Choose the right electricity package
Customers on the exchange package who rely on electric heating were the most affected by the high January bills. Fixing electricity prices is one of the easiest ways to ensure peace of mind and price stability. It is particularly suitable for customers who rely on electric heating and for those who do not want to shift their consumption to specific times of the day. If you enter into a fixed price contract, the unit price of electricity remains the same for the agreed period. This way, you don’t have to worry about what is happening on the stock exchange, making it easier to plan your monthly budget. The electricity price can be fixed for either a shorter or a longer period, for example for six months, one year or three years.
2. As a customer on the exchange package, make sure you can genuinely manage your consumption and shift more of your consumption to cheaper hours
A customer on the exchange package depends on the continuously changing exchange price throughout the day. By managing consumption wisely, it is possible to make significant savings on electricity costs. However, most people’s daily routines (for example preparing breakfast and dinner) tend to dictate that higher consumption falls during hours of higher demand and higher prices. In reality, many customers on the exchange package are unable to achieve the average exchange price through their consumption habits, as most of their usage still takes place during the daytime. Running the washing machine and dishwasher at night will certainly bring savings, but these appliances account for only part of overall consumption.
The lowest prices on the electricity market generally occur in the late night or early morning hours, but during prolonged cold periods, such as in January, low-priced hours may be absent throughout the entire day.
3. Prepare your home for winter – lowering the indoor temperature by one degree helps reduce energy consumption
The greatest savings potential lies in heating – as in the Estonian climate we have to heat buildings for nearly half the year, this is where most energy is used. Heating shouldn’t be turned off completely, but when adjusting the indoor thermostats, it’s worth bearing in mind that a one degree lower setting will already reduce heating costs by approximately 5%. Therefore, in winter it is worth considering whether it makes sense to keep the room at 25°C and wear a T-shirt, or to lower the temperature to, for example, 21°C and a long-sleeved top instead. If possible, use smart thermostats that allow you to adjust temperatures according to when you are at home.
It is also worth making sure that heating appliances, such as radiators, are not blocked or covered up by curtains, furniture or other large objects. Otherwise, the warm air cannot circulate in the room and you may want to turn the temperature up even further.
Even greater savings can be achieved by improving your home’s insulation and heating systems. For example, those who heat with electricity should, when choosing an air-source heat pump, pay attention to how efficient the unit is at lower outdoor temperatures. For many units, efficiency drops dramatically at -10°C, and electricity consumption can increase severalfold in freezing conditions. You can also check the seals on windows and doors to prevent heat loss.
4. Reduce the impact of ‘energy vampires’
One of the more insidious sources of household electricity costs is a group of devices that people don’t usually think of straight away. These are electronic appliances that remain plugged in around the clock – so-called ‘energy vampires’ – which can account for as much as 10% of your electricity bill. In modern homes there may be as many as twenty such devices. These include, for example, the dishwasher, washing machine, fridge, microwave oven, cooker or even a coffee machine. Many appliances remain in standby mode after use, continuing to consume small amounts of electricity.
Older appliances can be particularly costly, as they consume several times more electricity compared to modern machines. High electricity use can be caused by anything from an old television to a constantly running freezer with a low energy class. Replacing a 20-year-old fridge with a new A or B class model could save around twenty euros per year. In addition, many newer appliances offer eco modes that help optimise electricity and water consumption.
As a rule, the most energy-hungry appliances are electric radiators and fan heaters, water boilers, tumble dryers, and older fridges and freezers.
5. Take a critical look at your daily habits
Even small changes in consumption can have a significant impact:
- Turn off the lights in rooms that are not in use.
- Use LED lighting.
- Have major appliances serviced regularly.
- Review your consumption data regularly – this way you can see when your costs increase.
In summary: smart consumption = lower bills
Managing consumption, improving home insulation, using energy-efficient appliances and choosing a suitable electricity package together form a strong foundation for lower bills and more stable energy costs.
If you would like more tips on how to consume energy wisely, take a look at the articles on the Energy Wisdom blog ‘Home Savings’, where we share practical advice on reducing energy costs.
