The power enterprise does not understand the electricity agreement decision

“It is turning into very tough to offer fixed-time period contracts,” says Pekka Salomaa of Energy Industry.

Energy industry the director accountable for the energy market Pekka Salomaa considers the Consumer Disputes Board’s policy on the reasonableness of fixed-term and open-ended contracts to be unique.

“The alignment is maximum likely now not primarily based on regulation and is based on a completely special type of notion technique,” says Salomaa.

In a selection published on Thursday, the Consumer Disputes Board ruled that the energy contract legitimate at the moment may be multiplied by using a maximum of 15 percentage in line with year, if the growth way an boom of extra than 150 euros to the annual strength bill.

Read greater: The Consumer Disputes Board states that high priced constant-term contracts have to be rationalized – the consequences may be shocking

Board according to that, the charge of even a fixed-time period agreement is unreasonable if it's miles greater than 15 percent greater expensive than the common price of contracts provided for the duration of the entire two-12 months agreement period. Reasonability might be assessed yr by year afterwards.

The pointers mean that a large quantity of consumers who signed energy contracts final fall ought to call for money back from the power corporation for the energy rate they paid.

“It might be very difficult to provide fixed-time period contracts underneath the ones situations, due to the fact the risks for the strength dealers would develop very massive,” says Salomaa.

Wilderness does not yet need to assess what the sensible outcomes of the Consumer Disputes Board’s selections can be, because they difficulty a very big quantity of clients. The choices are pointers, but in practice the agencies have observed them, with very few exceptions.

“The significant majority of purchasers have either a hard and fast-term or indefinite contract.”

On the opposite hand, only a few of the constant-time period contracts expired simply remaining fall, and unreasonableness calls for that the strength invoice has swelled by using as a minimum a hundred and fifty euros in keeping with 12 months. The choice therefore handiest applies to households that use an inexpensive amount of strength.

Consumer Disputes Board justifies the 15 percentage growth ceiling by the truth that power is a necessary commodity. The equal boom ceiling has additionally been used in different regulations concerning important goods, as an example in power transfer expenses or lease growth conditions.

“This principle is nicely proper to sports with a stable fee structure, which include water supply or rents. Instead, costs inside the retail strength market have to be mirrored in the wholesale power marketplace, where costs can multiply or drop considerably in a 12 months,” says Salomaa.

In his opinion, the regulators should take this under consideration in their decisions.