Calculation method: Fixed ‘Finnish price’ + (Lithuanian flexible price - Finnish flexible price)
- Fixed ‘Finnish price’ = fixed price determined individually for a business according to the electricity price level in Finland.
For example, calculated fixed ‘Finnish price’ = 0.0800 EUR/kWh (can be two times lower than the fixed price in Lithuania).
- The difference of the flexible prices = the price difference of a specific hour in the Nord Pool power market between the Lithuanian market area and the Finnish market area respectively. Average price difference in 2021 = 0.0180 EUR/kWh.
Fixed ‘Finnish price’ in 2021, EUR/kWh
The difference of the flexible prices in 2021, EUR/kWh
Check the electricity price in the Nord Pool power market in the Lithuanian market area here
Choose this plan, if:
- you want one of the lowest fixed prices in the electricity market
- you want to fix a significant part of electricity price and you are not afraid of risks related to flexible price fluctuations
- you want to link the electricity price to the Finnish market, which has many renewable energy sources (RES).
What is important to note about the ‘Finnish price’ plan?
B2B customers pay for the electricity supplied and consumed during the reporting period in accordance with the provided VAT invoice, where we disclose:
- Fixed price for the Finnish market = fixed part of the electricity price.
- Lithuanian flexible price minus Finnish flexible price = the difference of hourly prices in the Nord Pool power market between the Lithuanian and Finnish market areas.
- Excise duty = 0,00052 EUR/kWh (for business needs). Excise duty shall not apply if the electricity is generated using renewable energy sources (RES), i.e., green energy.
We provide the bill after receiving the data from AB “Energijos skirstymo operatorius” (ESO).
The B2B customers pay for the electricity transmitted and related services provided during the reporting period in accordance with the VAT invoice submitted by AB “Energijos skirstymo operatorius” (ESO).
The flexible part of the price is calculated as a difference between the hourly prices between the Lithuanian and Finnish market areas in the Nord Pool power market. The electricity price of a specific hour in the Finnish market area is subtracted from the Lithuanian market area.
For example: on 31 December 2021 at 1 am the price in Lithuania reached 0.06576 EUR/kWh, and in Finland – 0.03004 EUR/kWh, meaning the difference is 0.03572Eur/kWh. On 31 January 2022 the difference was 0 EUR/kWh, etc.
Please note: the Nord Pool power market prices (EUR/MWh) are provided for the time zone in Sweden – UTC +2, which differs from the Baltic states by one hour. For example, the electricity price in Nord Pool on 1 April 2022 at 1 am was 111.72 EUR/MWh (0.11172 EUR/kWh), however, this price was applied to Lithuanian customers for their consumption at 2 am.
Flexible price is calculated according to the weighted price, which depends directly on the price in the Nord Pool power market in the Lithuanian market area at the hour when the electricity is consumed. If electricity is mostly consumed at the hours when it is the cheapest, the weighted price will also be lower. For example:
|Consumption by company A, kWh||Consumption by company B, kWh||Electricity price, EUR/kWh|
|Weighted price, EUR/kWh||0,057759||0,061034|
So, considering that businesses consume electricity differently, the weighted price is calculated for each business individually.
With non-automated meters (non-smart metering), electricity consumption at each hour is distributed according to the balance graph by applying the coefficients of electricity consumption fluctuations. These coefficients are calculated by AB “Energijos skirstymo operatorius” (ESO) in accordance with legal acts based on the factual consumption of the entire Lithuania of that month.
The total consumption of the reporting month is multiplied by the coefficient of each hour in the balance graph, thus, resulting in individual consumption for each hour.
|Day||Hour||Consumption per month, kWh||Coefficients of the balance graph||Hourly consumption data, kWh|
This electricity consumption is multiplied by the price difference between Lithuanian and Finnish market areas in the Nord Pool power market at that hour and adding the fixed supplier’s margin.
|Day||Hour||Hourly consumption data, kWh||Nord Pool market index difference||Added fixed supplier’s margin (0.005 EUR/kWh)||Total, EUR|
|6 hours’ total value:||17,05||1,08613|
The product of totalling the values of all hours is the total electricity price (EUR) and dividing the product by the total electricity consumed at the object during the reporting month results in individual average price for that month.
The example includes only 6 hours of one day, but the actual calculation includes 24 hours of all days of the month.
In the example: the price 1.08613 EUR / the consumption of six hours 17.05 kWh = 0.06370 EUR/kWh, and the VAT invoice would indicate:
3,000 kWh (the consumed electricity declared by the customer during the reporting period) x 0.06370 (the calculated price) = 191,10 Eur.
Since 2017 the average price difference between Lithuanian and Finnish markets was 0.000628 EUR/kWh. The Finnish fixed electricity price can be two times lower compared to the Lithuanian fixed price. On average, a business can save 90% compared to the Lithuanian fixed electricity price. The difference between the Lithuanian and Finnish flexible prices fluctuates each hour.