Do you know what network service means and how it differs from an electricity connection? What about how the price of electricity is formed and which part of it you can switch to another supplier? Our Buyer’s Guide will provide answers to the most important questions.
Electricity connection. An electricity connection refers to a property being connected to the electricity network. A property can only have one electricity connection; the connection contract is concluded by the property owner. A connection can be transferred to a new owner with a property sale, but it cannot be moved to another location.
Metering point. An electricity connection can have one or more metering points, as for example in terraced houses or apartment blocks. The electricity consumer, the property owner or tenant, makes an electricity sales and network contract for the metering point. Each metering point has its own electricity meter, and we bill the customer for the electricity used based on its metering information.
Network Service. Network service includes all the services related to the transmission of electricity from the power plants that produce it right down to the metering points. Examples of such services are uninterrupted network service day and night, maintenance and upgrade of the electricity network, and electricity metering. The services are included in the network service fees. Electricity is distributed by local distribution system operators.
Electric energy. Every consumer can conclude a contract on buying electric energy from the electricity company of their choice. There are many alternative contracts, from hourly priced exchange electricity to electricity that is produced completely using renewable energy sources. In addition to the basic charge, the pricing unit of electric energy is the kilowatt hour (kWh).
Everyone can invite tenders for electricity sales or electric energy. Electricity distribution must be bought from the distribution system operator in your area. The share of the electricity subject to competitive bidding is about 40 per cent of the total electricity costs.
Before competitive bidding, it helps to check on your electricity bill for your metering point number and address, your annual estimated electricity consumption, and the main fuse size of your metering point.
When comparing suppliers, it is worth considering your own volume of electricity usage. The average annual electricity bill of someone living in an apartment is about EUR 260 (2,000 kWh). Of this, the share of electric energy is about EUR 100 a year. Therefore, the gain from competitive bidding may only amount to a few euros.
The more electricity you use, the greater the benefit from competitive bidding. The annual electricity bill of a detached house with electric heating is about EUR 1,800 (18,000 kWh). Of this, the share of electric energy is about EUR 700 a year. By selecting the most suitable contract alternative, the saving may amount to a few hundred euros a year.
In some cases, electricity vendor has called the customer and indicated that they would see his contract information. However, this is not the case. Other companies do not see the customer’s contracts and the price of electricity. This information is only known to the customer and the current electricity sales company.
It is also worth asking your own electricity company for different contract alternatives. The Kymenlaakson Sähkö contract alternatives.
Total price of electricity consists of the price of electric energy, the electricity distribution price and taxes.
The price of electric energy consists of the basic charge depending on main fuse size and the user charge which is based on the amount of electricity consumed. Price of electric energy is open for competitive bidding.
The distribution charge consists of the distribution basic charge depending on main fuse size and the distribution user charge which is based on the amount of electricity consumed. The price of distribution includes the costs of building and maintaining the electricity network as well as the costs of measuring electricity. The local electricity distribution company is always resbonsible for the distribution of electricity, therefore competitive bidding doesn’t apply to distribution.
The electricity is subject to a separate electricity tax and a security of supply fee which are paid according to the amount of electricity consumed. Taxes and security of supply fee are charged together with distribution charges.
There are electricity salespeople about who have misled our customers. We have been contacted by our customers who have had electricity contracts made, even though they only wanted to ask for an electricity quotation.
If you think that the electricity sales company has acted wrongly, send a written complaint to the company in question. If your complaint is unsuccessful, you should contact the Competition and Consumer Authority.