Margin
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.
The margin is the main competitive lever in spot contracts. Since all companies sell the same Nord Pool electricity, the margin decides who is cheaper.
Finnish spot-contract margins range from about 0.3 to 1.0 c/kWh. The lowest margins belong to smaller players (Aalto Luotsi 0.34 c/kWh, Cheap Pörssisähkö 0.39 c/kWh, Hehku Pörssi 0.39 c/kWh); the highest to large well-known brands (Fortum Tarkka 0.59 c/kWh, Vattenfall Optimi 0.50 c/kWh).
Example: with 5 000 kWh annual consumption, margin 0.34 vs 0.60 c/kWh = a difference of €13/yr. A small number per kWh becomes meaningful annually, especially for high-consumption households.
Fixed-price contracts have no separate margin — the energy fee is the total price.
Why do margins vary between retailers?
The margin covers: 1) risk management costs (hedging against market spikes), 2) administrative costs (customer service, billing, IT), 3) profit. Smaller players can operate with lower margins thanks to lighter cost structures and digital-only servicing.
Large brands (Fortum, Vattenfall) carry higher margins partly for brand value, partly to fund wider service ranges (customer support, apps, add-ons). The 0.34–0.60 c/kWh variation is not just "cheaper vs more expensive" — it reflects different value propositions.
Margin vs basic fee — which matters more?
Depends on annual consumption. At 2,000 kWh/year (small apartment) a €2 basic-fee difference is €24/year — clearly more than a 0.25 c/kWh margin difference (€5/year).
At 10,000 kWh/year (electrically heated detached house) the same 0.25 c/kWh margin difference is €25/year, while the €2 basic-fee difference remains €24/year. At high consumption the margin weighs the same or more.
Rule of thumb: under 4,000 kWh/year look at basic fee first; above 4,000 kWh/year the margin matters more.
Intro period affects the effective margin
Many retailers offer a fee-free intro period of 3–12 months — significantly lowering the effective first-year margin.
E.g. Cheap Pörssisähkö 0.39 c/kWh + 6 fee-free months: at 5,000 kWh the first-year effective energy fee is around 0.10 c/kWh net of basic fee (because 6 fee-free months saves €29.40 = ~0.59 c/kWh equivalent over the year). Long-term the margin matters most, but the first year can be effectively negative.
Frequently asked questions
What is the lowest margin in Finland?
Aalto Luotsi Pörssisähkö at 0.34 c/kWh is typically among the lowest. Hehku Pörssi at 0.39 c/kWh and Cheap Pörssisähkö at 0.39 c/kWh are also competitive. Check the Verrokit comparison for current numbers.
Can the margin change mid-contract?
In an open-ended contract the company can change the margin with 30-day notice — you have the right to terminate without cost if the change is significant. In a fixed-term spot contract the margin is locked for the whole term.
Is the lowest margin always the best choice?
Not necessarily. Look at the whole: basic fee, intro benefits, customer service quality and certificate of origin. The lowest margin without an intro benefit may cost more than a slightly higher margin with 6 fee-free months. Verrokit calculates the total at your consumption.