What You Should Know About Buying Electricity
Consumers have two contracts for the supply of electricity - one with an electricity retailer to buy electricity and one with a network operator to use network services. In an apartment building, residents can either buy electricity under an individual contract, by choosing their own electricity supplier and package, or through the housing association. If the electricity is bought by a housing association, the electricity supplier and package are chosen by a majority vote in the general meeting of the apartment owners.
In order to make an informed decision, it is possible to consult the different packages on the websites of electricity distributors and network operators. The largest network operator in Estonia is Elektrilevi.
Electricity packages are divided into stock exchange packages and fixed price packages. In addition, electricity retailers offer sustainable green energy packages, where electricity is produced from renewable energy sources.
Stock exchange packages are suitable for consumers who want to manage their electricity consumption and costs. For customers of Eesti Energia AS, the price is based on, depending on the contract, either the average market price or the amount of electricity consumed per hour and the stock exchange price valid during the same hour. For those stock exchange packages that are not currently based on the hourly market price, the transition to the hourly stock exchange package Muutuv (Variable) will take place from 1 September 2022. The new hourly-priced contract will apply automatically, but consumers will be notified beforehand, with the possibility to switch or terminate the contract. By using an hourly stock exchange package, consumers are able to regulate their consumption and manage it in accordance with the hourly market price. The stock exchange price is set on the electricity stock exchange of the Nordic and Baltic countries, Nord Pool.
The fixed-price electricity package Kindel (Stable) is well suited to consumers who have neither the possibility nor the desire to monitor their electricity consumption and stock exchange prices, and who prefer stability and predictability in their electricity bills. The Kindel package is divided into fixed-term and open-ended contracts. In 2022, a new 5-year fixed price package, Kindel Pluss, was added.
Before signing a contract to purchase electricity or use network services, please make sure to read the terms and conditions offered by the seller to make an informed decision about both the package and the contract period.
For example, if you choose the 5-year Kindel Pluss package, you should be aware that you will have to pay a hefty penalty if you terminate the contract early.
Electricity prices offered by electricity retailers can be compared at www.elektrihind.ee and www.energiaturg.ee.
To monitor the stock exchange price, find out what facilities (mobile app, push notification, etc.) are offered by your electricity retailer and whether both the stock exchange price and the consumption data are visible in the same place.
You can monitor the stock exchange price and use the recommendations to shift consumption to cheaper hours at www.elektrihind.ee/borsihind/ and www.elektrikell.ee/.
The current hourly electricity price (excluding VAT) is also visible on the Elering website www.elering.ee. If you follow the exchange prices directly from the Nord Pool Spot app or from www.nordpoolgroup.com, please note that the time there is one hour different from Estonia and the prices are shown net of VAT. The prices on the Elering and Nord Pool websites are in megawatt-hours and should be converted into kilowatt-hours (1MWh = 1000 kWh).
The current electricity price increase is not linked to network charges. However, as the level of the network charge depends on consumption, it is also worth making sure that the existing network package is the most appropriate and the most favourable. Check with your network operator for more information about the packages. The network operator Elektrilevi's self-service website www.elektrilevi.ee can help you compare which network package has the most advantages based on your consumption history.
Suggestions for reducing household energy costs:
- Keep your electrical appliances maintained
- Use energy-saving solutions
- Use a washing machine on cheaper hours
- Use LED light bulbs for lighting
- Turn off the light when you leave the room
- Choose the lowest acceptable temperature when using electric heaters
- Use floor heating sensibly
- Use household appliances economically
- Replace appliances with more energy-efficient ones where necessary and possible, considering the energy label when purchasing
- Do not leave computers or other electrical appliances plugged in on standby when not in use