Flexible and market-priced electricity contract — how it differs from spot

A flexible-price or market-priced electricity contract (Finnish: jousto-sähkösopimus, markkinahintainen sähkösopimus) is indexed to the Nord Pool average — typically the previous month’s or quarter’s mean price. Unlike pure spot, you don’t see hourly variation; instead, your rate updates monthly or quarterly. This guide explains how flexible contracts differ from spot and who they suit.

What is a flexible-price contract?

In a flexible-price contract, your per-kWh rate is set by formula rather than market hour. Common formulas: previous calendar month’s spot average + provider margin, or quarterly spot average + margin. The rate is announced at the start of each period and applies uniformly during it.

How does it differ from spot?

• Spot: Hourly price variation. Cheapest on low-price hours, expensive on peak.
• Flexible: One rate per month (or quarter). No hourly nuance — you pay the same regardless of when you use power.

For EV owners and households that can time loads, spot is usually cheaper. For households with steady consumption patterns, flexible can be slightly cheaper since it averages out price variation.

Pros and cons

• Pro: Simpler than spot — one rate per month, easier to budget.
• Pro: No hourly tracking needed — you don’t need to time loads.
• Pro: Slightly more predictable — within a month, you know your rate.
• Con: Lose hourly optimisation — EV owners miss night-cheap rates.
• Con: Provider margin often higher — flexible contracts can have higher margins than pure spot.
• Con: Less common — fewer providers offer than spot or fixed.

Who is flexible-price for?

Best for: a) households with relatively steady consumption (constant heating, no EV), b) people who want spot-like average prices but don’t want hourly tracking, c) apartment dwellers where load shifting isn’t practical.

Frequently asked questions