Purchasing electricity can seem complicated due to the many different options on the market, not to mention the added uncertainty of fluctuating exchange prices. In reality, having a wide range of choices benefits the customer – each package is designed for a specific type of consumer, whether the aim is price stability, flexibility or taking advantage of market prices. All the different solutions, however, base their pricing on the average exchange prices for the period. The following overview explains how different solutions work, what their strengths and risks are, and which option might be the best fit for whom.
- Period-based fixed and exchange price purchase solution: flexible risk management
This solution is suitable for companies that do not want to give up price certainty entirely, but also prefer not to fix their entire consumption at once. Under this package, the electricity price is split into two parts: one part is fixed for pre-agreed periods, while the rest is purchased at the exchange price. Such a flexible approach helps spread risk and allows businesses to take advantage of favourable market conditions.
This option is often preferred by manufacturing and industrial companies whose consumption may fluctuate over the year and for whom it is beneficial to fix only the more stable portion of their consumption. The solution offers a good balance between security and the dynamic nature of exchange pricing.
- Baseload energy and exchange price solution: ideal for companies with stable baseload supply
Under the baseload energy model, the company agrees on a specific amount of energy that it uses each hour, which is purchased at a fixed price. Any consumption above or below this baseload volume is settled at the exchange price. This solution is particularly suitable for companies with continuous 24/7 consumption, such as food processing plants, metalworking facilities or other businesses that operate around the clock.
The package provides price certainty for at least part of the electricity consumed, while allowing the remaining consumption to be adjusted in line with market conditions. At the same time, companies need to consider that if actual consumption differs significantly from the agreed baseload energy, it may be necessary to purchase additional electricity or sell surplus energy, which may not always be the most cost-effective option.
- Fixed price purchase solution: maximum price certainty
The aim of a fixed price package is to provide full price stability for the entire contract period. In this case, all consumption is priced at a pre-agreed fixed rate, which may be the same throughout the day or divided into separate day-time and night-time tariffs.
This solution is suitable for a wide range of businesses – both smaller and larger – as it allows electricity costs to be forecast with confidence. If stability and long-term budget planning are important for a company, a fixed price is a practical and secure option. The main risk of a fixed price package is that if market prices fall, customers on a fixed rate cannot benefit from this and remain tied to the agreed price level. Nevertheless, many companies value peace of mind more highly than the opportunity to profit from lower-priced periods.
- Exchange price purchase solution (Spot): suitable for consumers comfortable with price fluctuations
The Spot package means that the price of consumption is calculated based on the 15-minute Nord Pool exchange price. This solution is popular among companies that are willing to accept the risk of price fluctuations or whose business model can accommodate periods of high prices. It is often used, for example, by real estate companies that pass on costs to tenants.
The main advantage of the Spot package is the opportunity to take advantage of lower exchange prices, especially if the company can partially schedule its consumption to off-peak hours. However, it requires a higher level of risk tolerance and the ability to withstand periods of high prices.
- Solution with Finnish baseload energy prices and Estonian exchange prices: leveraging the Finland–Estonia price difference
Some companies aim to take advantage of the price difference between the Finnish and Estonian electricity price areas. Under this solution, a fixed amount of baseload energy is purchased at the Finnish price, with the Finland–Estonia price differential added. Any consumption exceeding the baseload energy is settled based on Estonian exchange prices.
This model is suitable for companies whose consumption is not completely uniform, but who still have a baseline demand. It can be particularly beneficial when Finnish electricity prices are lower or when the price differential is consistently small. At the same time, companies need to consider that fluctuations in the price differential can make supply either cheaper or more expensive.
- Fixed Finnish price purchase solution: price certainty in the Finnish price area
If a company wants a fixed price but is willing to accept price differences between the Estonian and Finnish price areas, a fixed Finnish price solution is suitable. As the name suggests, a fixed Finnish price applies to all consumption, with the Estonia–Finland price differential added each month.
This may be the most cost-effective solution in a situation where the price in Finland is lower than the price in Estonia. At the same time, volatility in the price differential can introduce some uncertainty, so this option is best suited to companies that value a fixed price but are still willing to accept a degree of risk regarding price differences.
- Percentage-based fixed and exchange price solution: a flexible middle ground
Some companies do not want to lock in their entire consumption, but still want to lock in a certain portion of the prices. With a percentage-based solution, the customer agrees on which portion of their consumption will be priced at a fixed rate and which portion will be priced at the exchange rate.
This solution is suitable for companies that want some stability in their costs, but also the opportunity to benefit from low exchange prices. At the same time, it is important to account for potential price fluctuations in the unfixed portion. Choosing the wrong fixed percentage can make the final cost higher.
- Balance management service and open supply at exchange prices: ideal for large and professional consumers
This product is primarily intended for large customers who have complex risk management needs and require flexibility when choosing their supply partners. The customer purchases electricity as an open supply and the supplier also provides the customer with a balance management service, meaning the supplier interacts with the system operator and manages the customer’s balance.
The solution allows the purchase of fixed supplies from other providers as well, helping to spread risk. Thanks to the balance management service, this solution is particularly well-suited for companies with high consumption that require professional risk management.
- Fixed supply: a basic package for very large consumers
In the case of fixed supply, a specific amount of energy is allocated for each hour and purchased as baseload supply. This solution is suitable for very large consumers (more than 10 GWh per year) with a consistent and stable consumption profile, such as telecommunications companies.
It provides the company with strong price certainty and the flexibility to purchase baseload supply over a wide range of time periods. At the same time, companies need to consider that if actual consumption differs from the fixed supply volume, they may need to purchase additional energy or sell surplus, which will affect the final cost.
Summary: which solution would be the best fit for your company?
| Consumer type | Recommended solution |
| Companies with stable and high baseload demand | Baseload energy + exchange price, fixed supply, Finnish baseload energy solution |
| Companies with variable consumption and a higher tolerance for price risk | Spot package (exchange price) |
| Companies sensitive to price fluctuations and seeking stability | Fixed price |
| Companies seeking flexibility and risk diversification | Fixed + exchange price (percentage-based), risk management solution |
| Very large consumers requiring precise control | Balance management + open supply, fixed supply |
