Influencer Electricity Contract – Who Should Consider It?

In the Influencer contract, the risks are not as high as with pure spot electricity, but the consumer is still in control. Vaasan Sähkö’s Sales Manager Jakob Frants explains what the own influence of the Influencer contract means and how you can benefit from it.

What is the Influencer electricity contract?

Influencer is a hybrid contract that combines features of exchange electricity and fixed-price agreements. At Vaasan Sähkö, the price consists of a monthly basic fee, an energy charge, and own influence. There are two types of Influencer contracts: fixed-term and valid until further notice.

• Fixed Influencer is a fixed-term contract, available in 6, 12, and 24-month periods. The energy charge remains the same throughout the contract period.

• Influencer is valid until further notice. The energy charge is updated four times a year.

”If you are interested in an Influencer contract, you can first try it with a contract valid until further notice. If this type suits you, it can easily be switched to a fixed-term contract, which offers longer-term stability.” 

Jakob Frants, Sales Manager at Vaasan Sähkö 

Example of how the price is formed with the Influencer contract: 

What is own impact and how is it calculated?

The Vaasan Sähkö Influencer contracts include something called own influence. It defines how the electricity consumer can influence their own electricity bill.

Own influence is determined by calculating the difference between the average spot price and the average realized consumption price (both in c/kWh) for each quarter-hour of the month.

The table illustrates the calculation method:

The amount of own influence for each month is confirmed when the total monthly consumption and the actual average spot price are known.

For most customers, own influence varies by +/– 2 cents/kWh

During the last 12 months, over 90 percent of our Influencer customers had an own influence of +/– 2 cents/kWh.

If the annual consumption is, for example, 10,000 kWh, this equals to about +/– €200 per year on the final electricity bill.

​​​Own influence enables a lower energy charge: If you time your consumption to cheaper periods (such as nights or weekends), own influence becomes negative, reducing your monthly bill. Conversely, if your consumption is concentrated during expensive periods, own influence increases the total price.

Own influence can be monitored almost in real time

You can follow your own influence in the Vaasan Sähkö app. When the meter is green, your own influence is lowering the electricity price. Red, on the other hand, indicates that there may be an extra charge unless you change the timing of your consumption.

For whom is influencer suitable?

Influencer contract is your choice if:

• You can time your consumption to cheap periods, such as weekends and nights. For example, you charge your electric car at night and use the sauna at weekends.
• You have a large water heater, and you can schedule its heating to cheaper periods and use the heat later for heating your house and domestic water.
• You own an electric or hybrid car. You can mostly charge the car at night without compromising living comfort.

You have solar panels. Spot electricity is usually most expensive on weekday mornings and evenings. Solar panels generate electricity during the day, covering part or all of consumption during expensive periods.

Good to know! In the Influencer contract electricity is produced with wind and nuclear power, so no carbon dioxide emissions are generated from its production.

”The Influencer contract is not the best choice if your consumption is low and occurs during expensive periods, or if you do not want to monitor spot electricity prices at all.” 

Jakob Frants, Sales Manager at Vaasan Sähkö 

How does Influencer differ from Exchange Electricity?

With exhange electricity you always pay the market price at that moment and bear the entire risk of price fluctuations yourself.

In Influencer, the risk is different. The customer does not bear the absolute price risk of the electricity exchange, but rather the risk of their consumption pattern, i.e., whether consumption occurs during periods cheaper or more expensive than the average. In other words, individual price spikes in spot electricity do not have a direct impact. What matters is whether your own consumption coincides with these periods or not.

The customer can influence the price with their own actions, but is not exposed to all spot electricity price fluctuations.

”Some customers switch from spot electricity to an Influencer contract valid until further notice for the winter months. This provides more security against the winter price spikes.” 

Jakob Frants, Sales Manager at Vaasan Sähkö 

How does Influencer differ from Basic Electricity?

In Basic Electricity the only way to affect the size of your electricity bill is to consume less. The energy price is known in advance, so you know exactly what you pay per kilowatt hour.

With Influencer you have more control. With smart timing, the energy fee can be lower than Basic Electricity thanks to own influence. On the other hand, if your consumption occurs at expensive periods, the energy fee may rise higher.

”In Influencer, the base level of the energy fee is typically lower than in Basic Electricity. Especially a 12 or 24-month fixed-term Fixed Influencer can be attractive if the energy price settles at 7–8 cents. For many, this provides the desired balance: the price is competitive, but there is an opportunity to benefit from timing without the full risk of spot electricity.” 

Jakob Frants, Sales Manager at Vaasan Sähkö

Over 85% of customers achieved a lower total price with the Influencer contract than with the equivalent fixed-price Basic Electricity contract during the last 12 months.

Expert: Jakob Frants, Sales Manager, Vaasan Sähkö.

Frants is responsible for electricity sales to private customers and small businesses, product pricing, the development of contract types, and Smart Home services.