Electricity bills explained
Electricity bills explained
On this page, we will explain what your electricity bill consists of. This will give you a better understanding of what you're paying for. Are you our customer? Log in to view your most recent invoice, invoice history, or other payment method.
Components of the electricity bill
Do you have questions about your electricity bill? Below you will find information about the different sections of the invoice. In addition to payment information, the electricity bill includes a breakdown of the electricity you use - you can also check how your consumption varies on an annual basis.
1. Invoice information: Your customer and contract number, Place of use identifier and address – in other words, where you have ordered electricity.
2. Your contact information: Your name and billing address.
Understand your electricity bill
Your electricity bills are based on the hourly consumption known at the time of billing. The electricity bill consists of electrical energy, electricity transmission and taxes. VAT and electricity tax are paid on transmission and electrical energy. The share of electricity sales can be independently selected and tendered, but the distribution is always handled by the local distribution company. The basic fee is a monthly fee. It is the same every month, regardless of electricity consumption.
The sale of electricity refers to the sale of electricity purchased by the electricity retailer. Fortum Markets Oy sells electricity to both households and business customers, and electricity is purchased from the Nord Pool electricity exchange and small-scale electricity producers. The price of electrical energy includes the costs of both the purchase and sale of electricity.
Electricity transmission is the transport of electrical energy through the electricity network to the end user, for example households and companies. The local distribution network company is responsible for electricity distribution, which owns the electricity network in its own operating area. The distribution fee cannot be put out to tender.
The total price of electricity consists of electrical energy, electricity transmission, electricity and VAT. Even if you have a variable price contract, you often have a fixed monthly fee in addition to the variable part.
A kilowatt hour (kWh) is a unit of electrical energy. It measures how much energy you consume. The origin of the electricity tells you which energy sources the electricity you buy comes from.
The electricity you purchase is transfered to your home via the local electricity distribution company’s network. The distribution company, or grid operator, charges for this service according to their own pricing model. Typically, the price consists of a fixed monthly fee based on the main fuse size and a consumption-based energy transmission fee. The distribution company’s invoice also includes energy taxes collected by the state. (In some cases, you can choose to have all these charges invoiced on the bill sent by Fortum, for example, in the case of Caruna.)
Transmission services are not part of Fortum’s business operations and are therefore not included in Fortum’s contract. However, when you sign an electricity contract with Fortum, our systems automatically send the information to the centralized data exchange system, known as Datahub, which confirms that the electricity delivery can begin. If everything is in order, you will receive a confirmation from us that includes the name of the local distribution company.
It is possible that you may receive a separate confirmation from your grid operator confirming the start of the distribution agreement. You do not need to contact the distribution company separately. However, before the start of the delivery, the grid operator may ask you to confirm the initiation of the electricity delivery. This is done to ensure that there is no risk of electrical appliances, such as a stovetop, being left on in a property that has been without power, which could pose a safety hazard.
You will receive two separate invoices, one for the sale of electricity and one for the transmission of electricity. Fortum will invoice you for the sale of electricity and your local grid company for the transmission of electricity. If your grid network company is Caruna, you will receive a joint invoice for the sale of electricity and the transmission of electricity.
A spot electricity contract follows the price development of the electricity market. If you have a spot electricity contract, your electricity bill will vary monthly depending on rises and falls in the electricity price. A fixed-price electricity contract, on the other hand, means that the price per kilowatt-hour remains the same throughout the contract period, and your electricity bill is roughly the same for each billing cycle. If you choose a spot electricity contract, you pay for electricity based on the exact hourly price at the time the electricity is used.
