Välkky Electricity Enterprise

The origin of electricity supplied on the basis of this contract is mixed electricity produced with renewable energy, nuclear power and fossil fuels in accordance with Finland’s production mix.

1. VALIDITY OF THE CONTRACT  

Välkky Electricity Enterprise contract is valid until further notice. The period of notice of the contract is fourteen (14) days.

2. PRICE OF ELECTRICITY    

The price of Välkky Electricity Enterprise contract comprises three price components: 1) the fixed price for electric energy (c/kWh) which is valid until further notice, 2) the price component determined on the basis of the timing of consumption (c/kWh, subsequently the usage impact), and 3) monthly basic fee. The billing price of electric energy consists of a fixed price part c/kWh (1), to which is added the monthly realized, metering point-specific usage impact c/kWh (2). However, the invoiced price of electric energy cannot be negative.

The usage impact is described in further detail below. The actual invoiced prices are available in the Yritys Helen service. The customer’s consent to using Yritys Helen is a precondition for drawing up the Välkky Electricity Enterprise contract. The supplier refunds or charges the metering point-specific usage impact each calendar month.

The usage impact is determined on the basis of the price in the Finnish price area (Elspot), published by the Nordic power exchange (Nord Pool AS), and the customer’s consumption. The calculation period is one calendar month. If the customer’s contract starts or ends in the middle of a calendar month, the part of the calendar month in which the customer has had a valid Välkky Electricity Enterprise contract shall be used in the price calculation. The customer’s consumption-weighted average price (A) is thus based on the electricity consumption and price on the effective days and on the average price of the power exchange over the entire invoicing month (B).

The monthly usage impact is calculated as follows:

(A-B) / E = c/kWh, where

A = the sum of the products of the electricity consumption (kWh) and the spot prices of exchange electricity (c/kWh)*

B = Monthly electricity consumption (kWh) multiplied by the non-weighted monthly average of exchange electricity (c/kWh)

E = Monthly electricity consumption (kWh) 

A = Consumption is multiplied by the spot price for the same time, after which these products of all periods of the month are added up. This way, the usage impact of various moments over the month is taken into account because consumption and the spot price determined on the market for different moments vary greatly by the periods. *If the measurement period of the meter is different from the market's spot price period, an average spot price from NordPool's spot prices is calculated for the meter's measurement period, which is used for billing.

B = The electricity consumption of the same month is added together and multiplied by the monthly average of the spot price for the same month. This makes it possible to calculate the price for total consumption according to the average spot price.

(A-B) = By deducting B from A, you can see the relation of consumption in lower and higher priced moments to the average value. Whether the value is negative, i.e. reducing the invoice amount, or positive, i.e. increasing the invoice amount, is determined according to whether a higher proportion of monthly consumption is consumed during a lower-priced or higher-priced period in comparison to the average for the whole month. The more you can direct monthly consumption to the lower-priced periods, the more you will stay below the monthly average. 

(A-B) / E = A-B calculated in the end is proportioned to consumption by dividing it by the month’s consumption. This gives the usage impact, i.e. the value as a c/kWh unit. 

3. AMENDMENTS TO CONTRACT TERMS AND PRICES

The seller has the right to amend the terms and prices of the sales contract in accordance with the general terms of electricity sales by informing the customer one (1) month before the amendment enters into force.  Spot price changes are not such changes in prices or terms of contract of which the customer will be informed in advance. 

4. OTHER TERMS   

Välkky Electricity Enterprise contract can be drawn up for a customer whose maximum annual electricity consumption in a metering point is 100,000 kWh/year or the size of the main fuse is at most 3 x 63 A. If the actual electricity use exceeds 100,000 kWh/year, Helen shall shave the right to cancel the contract with a 14-day period of notice.

5. RISKS AND OPPORTUNITIES RELATED TO THE PRODUCT   

The spot price is used in the calculation of usage impact. The price of electricity on the electricity market is determined by supply and demand. Spot price fluctuations on the electricity market offer customers the opportunity to influence the price of their electricity bill by timing their consumption to the most affordable periods. If the use of electricity is concentrated during more expensive periods, it will have an increasing effect on the usage impact. 

The characteristics of spot priced electricity include that the price paid for electricity can vary significantly within a day as well as between days. The end user does not know the price beyond a one-day period. Therefore, from the customer's perspective, the product includes both opportunities and risks.