Electricity glossary

An EU-supervised certificate (Guarantee of Origin, GO) that confirms an equivalent amount of electricity has been produced by the stated source — e.g. wind, hydro or nuclear.

The Finnish area price is the hourly electricity area price calculated for Finland on the Nord Pool exchange. It may differ from the neighbouring prices (Sweden, Norway, Estonia) if transmission capacity is insufficient to balance the market.

Solar power is electricity generated by photovoltaic panels. In Finland solar production is significant April–August and nearly zero November–January.

The energy fee is the per-kWh part of the electricity contract (c/kWh). In spot contracts it is the margin plus the hourly market price; in fixed contracts it is locked for the whole term.

Fingrid is the Finnish transmission system operator (TSO) that owns and operates the national high-voltage grid (110–400 kV). Fingrid is also responsible for balancing the power system.

Fossil-free electricity means certified-origin electricity that is NOT produced with fossil fuels (coal, oil, gas). Includes nuclear power and renewables.

A contract where energy price is partly fixed and partly linked to the spot price. Combines the predictability of fixed and the flexibility of spot.

A contract indexed to the spot average on a monthly or quarterly basis. Not hourly like spot, but not locked like fixed.

A common element in hybrid contracts where the customer's consumption profile (hourly distribution) affects the energy price. Rewards shifting to cheaper hours.

A contract where the c/kWh energy price is locked for the full contract period (typically 12, 24 or 36 months). Predictable bill, no exposure to spikes.

Units of electricity energy: 1 kWh (kilowatt-hour) = 1 000 watts running for one hour. 1 MWh = 1 000 kWh. 1 GWh = 1 000 MWh. A household's annual use is typically 1 500–20 000 kWh.

The point-of-use identifier is a 12–18 digit code that uniquely identifies a grid-connected site (apartment, house, EV charging point). Found on your current electricity bill.

A contract with a binding fixed term (12, 24 or 36 months). Cancelling mid-term usually incurs a break fee.

The margin in a spot electricity contract is the surcharge the retailer adds on top of the Nord Pool hourly price (typically 0.3–1.0 c/kWh). It is the retailer's income from the energy business.

Nord Pool is the electricity exchange for the Nordics and Baltics that sets the hourly area price. The Finnish area price FI is published for the following day's hours daily around 13:00–14:00.

The monthly standing charge is a fixed monthly fee on the contract (typically €2–8/month), billed regardless of consumption. On low usage it noticeably increases the effective per-kWh price.

An electricity contract whose energy price follows the Nord Pool exchange 15-minute price. You pay the realised market price plus the provider's margin.

An electricity exchange is a marketplace where producers and buyers meet and the price is set by an auction mechanism. The Nordic and Baltic electricity exchange is Nord Pool.

The electricity tax is a state excise duty on electricity use. In Finland, the household rate is 2.79372 c/kWh (2026, 3.51 c/kWh with VAT) and it is charged on the transfer bill.

A grid company (DSO) is the local distribution grid owner that delivers electricity from the transmission grid to homes. You cannot choose it — the grid company is determined by where you live.

The spot price is the hourly market price on the Nord Pool exchange without margin or taxes. The Finnish spot price = "FI area price". Published daily for the next day around 14:00.

The transfer fee is charged by your local grid company for delivering electricity from the grid to your home. It CANNOT be tendered — the grid company is a local natural monopoly.

Industrial CHP refers to combined heat and power plants operating at industrial sites. The industrial plant (e.g. a paper mill) uses the heat for its process and feeds electricity into the grid.

A contract with no fixed term — continues until either party terminates (usually with 14 days to 1 month notice). You can re-tender at any time.

Wind power is electricity generated by wind turbines. Finland's largest renewable source and a strong driver of the spot price — on windy days the spot price is low.

Renewable energy is electricity production based on continuous natural flows: wind, hydro, solar and biomass. In the Finnish power system, renewables account for over half of the mix.

The 15-minute price is the Nord Pool electricity area price that updates every 15 minutes. From late 2025 it has replaced the previous hourly price in Finland and other Nord Pool countries.

Hydropower is electricity generated from the kinetic energy of flowing water. In Finland hydro accounts for about 15–20 % of production and its great strength is fast controllability.

Nuclear power is electricity from uranium fission. Finland has nuclear at Loviisa (2 units) and Olkiluoto (3 units) — a total of about 4.4 GW capacity and ~30 % of electricity production.