The number of complaints about electricity contracts has increased in recent years, says the leading expert of the Finnish Competition and Consumer Agency Mikko Saastamoinen .
Consumers have complained to the advice on electrical matters this year on 21.7. by 1963 times, the agency says. The total number for 2021 was 3629 and the corresponding number for 2019 was 2382.
According to Saastomainen, there have been many problems over the years, especially with telephone sales of electricity, but changes are coming to the legislation that will improve the position of the consumer.
“Among other things, at the beginning of next year, a law reform will come into effect, according to which, in telephone sales initiated by the seller, the binding nature of the contract requires a separate written confirmation procedure after the telephone conversation.”
Most complaints about these electricity companies
- Oomi Oy (223): the contacts have primarily been related to the termination of price cap agreements
- Väre Oy (155): the contacts have primarily been related to the charging of so-called data hub fees from consumers
- Kotimaan Energia Oy (141): the contacts have been related to, among other things, telephone sales and price increases
- Switch Nordic Green AB Filial Finland (138): contacts have primarily been related to telephone sales
- Lumo Energia Oy (135): the contacts concerned, among other things, changes in conditions in connection with the transfer of electricity sales contracts and determinations of the price and duration of the contract
- 365 Procurement (132): the contacts were primarily related to unwarranted debt collection
Quantities from 1 January – 21 July 2022. Source: KKV
“From the complaints received by KKV, it can be concluded that there have been special problems in the procedures of the companies in question from the point of view of consumers. The size of the company and the number of customers are not necessarily reflected in the number of complaints”, Saastamoinen reminds.
According to him, the figures do not fully describe the extent of the problems, because almost all consumers do not contact the agency.
Companies comment
Oomi says that he has responded to all clarification requests from KKV.
“The termination of the Hintakatto contract, which was valid until now, had to be done for compelling reasons, when the derivatives that protect the Hintakatto product could not be bought on the wholesale electricity market,” says Oomi’s CEO Tuomas Oksanen .
CEO of Väre Juha Keski-Karhun according to the company has discussed the complaints with KKV and answered the questions asked by the agency about the basis of payment.
Kotimaan Energia says that this year, the vast majority of consumer advisory contacts concerning the company came in connection with the price spikes of stock exchange electricity in winter. According to the company, the number of contacts has decreased significantly between April and June.
CEO of Lumo Energia Otto Savastin according to the growing electricity companies, of which Lumo has also been a part, receive more complaints.
“Electronic sellers with a lot of customers receive more complaints on average than smaller ones”, he reminds.
KKV last reported in the spring that 365 Hankinta is still sending unwarranted invoices. The company’s electricity deliveries to customers were interrupted in June 2021 due to the absence of a balance sheet manager, and operations have not continued since then. Despite that, complaints to the agency have accumulated.
The company commented that it handles its collection mostly through legal collection.
“It is more efficient than voluntary debt collection, and it is also better from the customers’ point of view, as the judgment brings the debt issue to a close. In our opinion, voluntary collection is only meant to keep receivables alive and collect costs from the debtor, generally the operation of collection agencies.”
This is how you should make an electricity contract
“The salesman’s comments about the affordability of the offered contract should be viewed with caution. You can ask the seller for proof of savings claims, and carefully compare the new contract with the current one,” advises Mikko Saastamoinen from KKV.
You should also pay attention to the form of the offered contract. Is it an open-ended or fixed-term contract? In addition to leaving the contract, it affects how the price and other conditions can change.
A contract that is valid for the time being can be terminated, but a fixed-term contract basically binds the entire contract period.
According to Saastomainen, it is also worth evaluating what the current agreement is like.
“If the consumer has a fixed-term contract, it is not necessarily worth making a new contract an awful lot in advance. The new contract can only come into force after the end of the current fixed-term contract, and circumstances may have changed during this time,” says Saastamoinen.
In addition, bidding for the electricity contract and comparing prices is definitely worth it, he says.
“Here you can use, for example, the Energy Agency’s sahkonhinta.fi service. There are a lot of different electricity comparison and competition websites operating online.”
You should treat websites with a healthy critical attitude. According to the expert, some of the operators may have connections to certain electricity sales companies, and the comparison results and the way they are presented are not necessarily completely unbiased.
“The consumer should carefully read the confirmation notice of the electricity contract to make sure it corresponds to what was agreed.”