Electricity basket contract against increases in the market price

The electricity basket contract is intended for household customers who wish to hedge themselves against increases in the market price of electricity.

In the electricity basket, half of the electricity price is fixed for a period of two years. The price of the other half is determined according to the price of the contract valid until further notice, and it can rise or fall according to the development of the market price.

The electricity basket provides protection against changes in the market price

The electricity basket is a good choice when the development of the market price of electricity cannot be predicted. If the market price of electricity rises, the fixed-price proportion is protected against a price increase. On the other hand, if the market price of electricity falls, the other half of the price of the electricity basket may fall. The price of electricity distribution is always valid until further notice, in accordance with the public price list.

Helsingin Energia makes efforts to hedge the prices of contracts valid until further notice against fluctuations in market prices by hedging the electricity price a long time in advance. The electricity price of a contract valid until further notice follows the market price of electricity, however. If the market prices fall, the prices of contracts valid until further notice will also fall at some stage. In such a situation, the price of the other half of the electricity basket contract that is valid until further notice also falls.

Two-year contract period

Well before the end of the contract period, Helsingin Energia will send the customer information on the prices that will be valid during a new contract period.  If the electricity basket contract is not renewed, the contract will be treated as a normal contract valid until further notice, in accordance with Helsngin Energia’s public price list. If the customer moves to a different location during the validity of an electricity basket contract, an agreement is made to alter the contract so that it will concern the new address of the customer.  An electricity basket contract may also be cancelled before the end of the contract period. Cancellation of a contract is subject to a charge, however.