The consumer advocate wants the electricity company’s price increases to the Supreme Court

Consumer representative is applying to the Supreme Court for permission to appeal against Vaasan Sähkö’s price increases, says the Finnish Competition and Consumer Agency (KKV).

In October, the Market Court rejected the consumer ombudsman’s injunction claims regarding the procedures used by Vaasan Sähkö in price increases in 2022.

Vaasan Sähkö announced in autumn 2022 that it will increase the prices of the electricity sales contract. Due to the unilateral change in the contract terms, the pricing structure of the Basic Electricity contract changed and the price of electricity almost tripled to around 30 cents per kilowatt hour, KKV tells.

According to Vaasan Sähkö, the reason behind the price increases was the increase in the market price of electricity and derivatives caused by the energy crisis, which is why the sector also saw large increases in consumer prices of electricity.

The Market Court found that Vaasan Sähkö made the price increases based on the terms of the contract and the Electricity Market Act. According to market law, the company’s actions were not unreasonable.

The consumer ombudsman considers the interpretation of market law very positive for Vaasan Sähkö and considers that the decision narrows the consumer’s rights unjustifiably.

at SME according to the announcement, the consumer advocate is applying to the Supreme Court for a preliminary ruling on whether the electricity company can increase the price of the electricity contract valid for the time being more than what would have been necessary due to the changed electricity procurement costs alone.

“This is about a broader issue than a single case, because a significant part of Finnish households have an electricity contract that is valid until further notice. Based on the freedom of contract, it should not be possible to make unreasonable price increases for consumers,” says the consumer advocate Katri Väänänen in the bulletin.