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Is your electricity contract being extended? Here you will find answers to the most frequently asked questions
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25.11.2020

At the end of the year, the electricity contract will be extended again for many homes. If you last addressed electricity issues years ago when the contract was signed, you may want an update on what the extension of an electricity contract really means.

I received an offer in my inbox for an extension. What do I have to do?

The short answer is that nothing. If the price quote suits you, the contract will be automatically extended with the same package for the next period. For example, if you have a three-year fixed-price electricity package contract, you will receive a new quote for the exact same package and period, and the contract will automatically renew unless you have indicated that you want to change something.

If you feel that you want to change your package or contract period, for example, to choose a package with a stock exchange price instead of fixed price, then you can easily do so in Eesti Energia's e-service.

In the extension offer sent to me, the price of electricity has changed compared to the previous period. Why is it so?

Electricity is one of the few products the price of which can be fixed for a long time. The reality is that changes have taken place in the electricity market over the past three years, as a result of which the price may either rise or fall by the time the contract is extended.

From 2013, the price of electricity on the Nordic and Baltic power exchange has been determined by the supply and demand ratio. The market price of electricity changes every hour and depends on the price of CO2 quotas, coal and gas prices, as well as the general situation in the electricity market, i.e the operation of power plants and consumer demand.

Recently, the market price of electricity has been mainly influenced by warm winters, fluctuations in energy prices due to coronavirus, and the level of reservoirs in the hydropower plants of the Nordic countries.

What can I do to reduce my electricity bills?

There are ways to reduce electricity bills in every home. The good news is that every kilowatt-hour not consumed affects the electricity bill threefold, because the network charge, electricity excise duty and renewable energy charge also decrease by the amount of electricity saved.

The biggest potential for saving lies in heating. As the Estonian climate requires heating for almost half a year, it consumes the biggest amount of energy. Electric radiators and fan heaters may be convenient options, but a much more cost-effective solution is, for example, an air source heat pump. Now you can get a heat pump suitable for your home from Eesti Energia.

If your electrical appliances are older than average, they can have an effect on your electricity bill.

In general, when purchasing a new household appliance, you should keep an eye on not just the retail price, but also on how much the maintenance of the appliance will cost. A more expensive but more economical appliance will often pay off within a couple of years.

The construction of a domestic solar power plant can also bring long-term cost savings. Solar electricity is a competitive alternative to electricity purchased from the grid and the easiest way to start self-producing environmentally friendly electricity. The introduction of solar panels will reduce your current electricity bills, help increase the value of your real estate, and provide long-term security against rising electricity prices.

You can also achieve significant savings by reviewing your current network package. If the number of your family members has increased over the years, the amount of electricity consumed has changed, the balance of night-time and day-time consumption or the size of your main circuit breaker have changed, then your current package may no longer be the best choice. If your network service provider is Elektrilevi, it is easiest to compare network contract packages in Elektrilevi's e-service.