Electricity market
Estonia operates in the Nord Pool electricity market
- Estonia is part of Nord Pool's open electricity market together with Norway, Sweden, Finland, Denmark, Latvia and Lithuania (see map).
- In the open electricity market (power exchange), the price of electricity is formed as a result of supply and demand.
- There is at least one price area in each country, in a larger country there may be several.
- The areas are connected by cables (dark blue lines on the map).
- Electricity prices vary from area to area due to limited cross-border transmission capacities.
- The more renewable energy an area produces, the cheaper the price of electricity there.
NB! Daily price fluctuations on the power exchange only affect those consumers with an electricity package based on exchange prices. In the case of a fixed price electricity contract, the price has been agreed for the contract period and will not change.
Exchange price of electricity
The exchange price of electricity changes every hour as a result of supply and demand
Exchange price formation
- Electricity sellers place orders with the power exchange every day for how much electricity their customers will need for the next day. The amount of energy to be produced becomes clear.
- Renewable and nuclear units are the first to enter the market to meet demand. Their output is at a lower price because the energy sources are very cheap and no carbon dioxide is emitted. If there is enough renewable energy to cover the consumption, the price of electricity on the market will be affordable.
- If renewables do not meet the demand, oil shale, coal and gas power plants will have access to the market. Their electricity is more expensive due to both the fuel and the CO2 emission charges.
- The exchange price of electricity is determined by the last bidder. If, for example, an expensive gas-fired power plant is the last to cover the market demand, it will determine the price of electricity for that particular hour.
Average exchange prices 2024
Price | |
|---|---|
May 2024 | 9.25 |
April 2024 | 7.37 |
March 2024 | 8.32 |
February 2024 | 9.21 |
January 2024 | 15.45 |
Prices cent/kWh. Sales marginal is added to prices
Average exchange prices 2023
Price | |
|---|---|
December 2023 | 10.69 |
November 2023 | 12.61 |
October 2023 | 10.49 |
September 2023 | 13.63 |
August 2023 | 11.33 |
July 2023 | 9.55 |
June 2023 | 11.05 |
May 2023 | 7.87 |
Prices cent/kWh. Sales marginal is added to prices
Stock exchange
Nord Pool
Hourly exchange prices
If you have a remote reading meter installed at your consumption point, the point of consumption has been switched to remote reading, and you have selected the hourly rate Exchange or Combined package, your electricity bill will depend on how much electricity you consume per hour and the exchange price for that hour. Hourly wholesale market prices are published on the Nordic Power Exchange, i.e., on the website of Nord Pool. You can also check the hourly rates for the next day with Enefit's mobile app.
Electricity prices in the wholesale market
On the wholesale market, very large quantities of electricity are traded on, thus, prices are expressed in megawatt hours (1 MWh = 1000 kWH). For example, if the wholesale price of electricity is EUR 43 per megawatt-hour, that would be 4.3 cents per kilowatt-hour in kilowatts. It is worth remembering that the wholesale price of electricity does not include VAT and does not take into account the customer's electricity consumption.
Effect of exchange prices on the invoice
If you have the Fixed package, the price per kilowatt-hour of electricity is fixed for an agreed time, and the monthly electricity bill will be the same. If your point of consumption has been switched to remote reading and you have selected a hourly rate Variable or Combined package, the amount of your electricity bill will depend on the amount of electricity consumed per hour and the exchange price for that hour.
Nord Pool Spot time zone
Important! The common Nordic electricity market, Nord Pool, operates in the Central European Time Zone (CET), which is one hour behind the local Estonian time. In order to calculate the electricity bill correctly, Nord Pool Spot's hourly prices must be shifted one hour in advance to reflect the electricity consumption in the Estonian time zone.
General service and balancing energy
General service or balancing energy is used by those electricity consumers who have not contracted with any electricity trader.
In that case, the electricity is sold by the network operator or its authorised electricity trader.
Prices for the general service 2024
From 1.10.2022, the pricing principles of the general service for domestic consumers changed. This means that if until now the base price of the general service was based on the average stock exchange price, now the base price is based on the producer price. All other general service customers are billed based on the daily price.
Price per night | Price per day | Nightly rate | |
|---|---|---|---|
Мay 2024 | 22.70 | 22.70 | 22.70 |
April 2024 | 22.02 | 22.02 | 22.02 |
March 2024 | 21.33 | 21.33 | 21.33 |
February 2024 | 21.20 | 21.20 | 21.20 |
January 2024 | 21.56 | 21.56 | 21.56 |
Prices cent/kWh
Prices for the general service 2023
Price per night | Price per day | Nightly rate | |
|---|---|---|---|
December 2023 | 20.64 | 20.64 | 20.64 |
November 2023 | 22.44 | 22.44 | 22.44 |
October 2023 | 21.38 | 21.38 | 21.38 |
September 2023 | 20.88 | 20.88 | 20.88 |
August 2023 | 21.28 | 21.28 | 21.28 |
July 2023 | 21.18 | 21.18 | 21.18 |
June 2023 | 21.07 | 21.07 | 21.07 |
May 2023 | 20.64 | 20.64 | 20.64 |
April 2023 | 20.65 | 20.65 | 20.65 |
Prices cent/kWh