What does an electricity bill consist of?
An electricity bill consists of electricity network services, electrical energy and electricity taxes.
Basic information
Electricity network service (network service) refers to all activities of the local distribution network operator that enable the delivery of electricity in exchange for a fee within the operator’s distribution network. The network service and the price of electricity distribution cannot be competitively selected; electricity distribution is always provided by the local distribution network operator – in Helsinki, Helen Electricity Network Ltd. The electrical energy you consume is supplied and invoiced by the electricity supplier you have chosen.
If you have selected the electricity sales contract of the local energy company, you will receive a combined invoice from the sales and distribution companies belonging to the same group.
Components of the total price of electricity
The total price of electricity consists of the price of electrical energy, the electricity network service fee, and taxes.
Lisätietoa
Electrical energy refers to the energy delivered by your electricity supplier and consumed by the customer. The price of electrical energy consists of energy purchased by the supplier from its own power plants, from the Nordic electricity exchange or directly from another producer, of the hedging costs arising from fluctuations in energy prices, and of other operational costs. The invoice is generally based on the amount of electrical energy used during the billing period and a monthly basic charge.
Electricity network service refers to the transmission of electricity produced in power plants to electricity users along the electricity network. The price of electricity distribution consists of several elements.
The network service fee is used to maintain the electricity network and finance investments in the new electricity network as well as to cover the costs caused by capital tied up in the network. The fee also covers year-round network monitoring and fault repair, electricity consumption metering and customer services, such as online reporting of consumption data.
In addition, network service fees cover the costs caused by losses in the electricity network and compensation paid to the transmission system operator for national electricity transmission. The network service fee typically consists of a fixed fee and a variable component based on consumption.
Electricity tax is paid on electricity consumption. The tax (Class I) is 2.827515 c/kWh (incl. VAT). It consists of excise duty on electricity and a strategic stockpile fee. The electricity network company invoices the electricity tax to the customer in connection with the distribution fee and forwards it to the state.
In addition to electricity tax, a 25.5% value added tax is applied both to the energy fee and to the distribution fee.
The security of supply fee covers costs related to societal preparedness and the management of disruption situations.
Electricity excise duty is part of electricity taxation and is charged based on electricity consumption.