Updated 15.34: After this case was published, Los says that the cooling-off period still applies to customers. That’s what Agderposten writes. The Consumer Council has indicated to news that customers did not receive the correct information about the right of withdrawal, and that the withdrawal period was still running. This means that customers can still exit the fixed price agreement without paying a termination fee. Los writes in a press release that customers will get the agreement they usually have retroactively to 1 November. In September, the electricity company Los called mother-of-three Cathrine Fjeld in Furuholtet in Southern Norway. – Then they told me that the electricity price was predicted to reach NOK 10-20 per kilowatt hour, she says to news. The words struck a chord with the nurse who had been dreading the electricity bills this winter. But Los wanted to offer her a solution to the price spikes: Tie the electricity price to NOK 6.49 for November and December, including taxes and surcharges. In a busy everyday life, she was given two days to take up the offer. – It was presented as if this is nothing more to think about, that you should do this. That’s what I thought too, if the electricity goes up to NOK 10-20. I can’t afford not to, so I agreed, she says. Cathrine Fjeld received an e-mail from Los after the telephone conversation. The Consumer Council says that several customers have made contact and say they felt stressed by the short response period, and that Los predicted sky-high prices without the agreement. Photo: Victoria Marie Nordahl / news The electricity subsidy beats a fixed price of up to NOK 40 According to Fjeld, the telemarketer said nothing about the fact that she would be better off with the government electricity subsidy if the price were to be as expensive as NOK 20. The electricity subsidy covers 90 per cent of the price above 70 øre. The arrangement is actually so good that the price must be well over NOK 40 per kilowatt hour on average before the fixed price for Los ensures customers a lower base price for electricity, according to news’s calculations. – The agreement they got was, and is, a very bad agreement, says consumer lawyer Thomas Iversen in the Consumer Council. Sales manager Rolf Bjarne Eriksen in Los disagrees. – “Los predictable” as a service is a good deal. Then we see this time that the market has turned, and no one could have expected that, he says. Sales manager Rolf Bjarne Eriksen at Los says customers at Los have wanted fixed price agreements. Photo: Ada Drevdal Bjøranger / news Waiting for a NOK 10,000 more expensive bill But this is not the only unfavorable thing about this agreement. On average, electricity cost NOK 3.54 in Southern Norway in September. In October the price plummeted, and so far in November the spot price has been 53.6 øre on average, according to Nordpool. The electricity subsidy is calculated according to the spot price. When the average price is below 70 øre, neither fixed-price customers nor others receive a single øre in electricity subsidy. Fjeld estimates that she will have to pay NOK 10,000 extra because each kilowatt hour costs her NOK 6.49. – It will go beyond the Christmas celebration and Christmas packages. Half the tax in December goes to Los, she says, and continues: – I have sent an e-mail about how much it costs to get out of the agreement. I received an answer today that I have to pay NOK 8,000, she says. Fjeld had not expected to make a profit from the fixed price agreement, but did not think the downside was huge. Over the phone, she was neither explained how the electricity subsidy nor the termination fee works, she says. A number of customers say the same to news, and the Consumer Council is sitting on similar information from several frustrated customers. – I will be able to get through this even if it is very expensive. But there are probably quite a few other families with children who will struggle, says Fjeld. – Horribelt Fjeld’s history is therefore not unique. In social media, people are almost in a panic about how the fixed price will turn out. Agderposten also spoke in October to a minimum pensioner who fears a shock bill, while Fædrelandsvennen mentioned another case on Wednesday evening. Los will not tell news how many people took up the offer. news has spoken to several customers with poor advice and who do not want to be named. – It is absolutely horrible. Here we are left with two large bills in December and January. January is the worst month, says a pensioner. Los customers received the offer by email on 13 September or were called by a salesperson. The email does not contain any calculations of how the electricity subsidy follows the spot price, or how expensive the termination fee could be. Photo: Screenshot mail to customer Another says that he is on disability benefits and receives housing benefit, and was frightened after reading in the newspaper that electricity could cost NOK 10. He didn’t get a phone call, but an enticing email from Los: “With Los predictably linked to your electricity contract, you can choose a fixed price for short periods to protect yourself from the highest price peaks in the electricity market.” it says in the email that news has seen. This is what Los wrote in the e-mail to customers on 13 September LOS predictable – fixed price offer for November and December Order deadline is Thursday 15 September at 20:00 With LOS predictable linked to your electricity contract, you can choose a fixed price for short periods to protect yourself from the highest price peaks in the electricity market. The reason for the short order deadline is major fluctuations in the market. Fixed price offer for November and December 2022 The fixed price offer is 649.90 øre/kWh and includes VAT. and fees. The fixed price must be ordered by Thursday 15 September at 20:00 using the link below. After ordering, you receive a confirmation and then your fixed price is registered. Note that online rental is in addition to the fixed price. When the fixed price period is over, you automatically get your original electricity contract back. If you do not wish to use the fixed price offer this time, you do not need to do anything. You need your customer number to order the fixed price for November and December. It’s xxxxxx. Order fixed price here We would like to point out that although it has been profitable to make use of the fixed price offer from LOS throughout 2022, predictability is the aim. The aim is not to beat the spot price, but to provide a predictable electricity price. Price expectations The electricity market is unrecognisable, and the power situation is abnormal in every way. The situation is as unclear as it is undesirable, both for our customers and for us as an electricity supplier. The main reason is the price of gas, which has skyrocketed after the Russian invasion. As a result of the hostilities in Ukraine and the European countries’ sanctions, Russia, which is sitting on large quantities of natural gas, has stopped the export of gas to Europe and a number of countries are now struggling to fill their stocks. Electricity subsidy The government’s electricity subsidy scheme also applies to customers with a fixed price, but it is the spot price that forms the basis for the electricity subsidy, not the fixed price. It is the average spot price that forms the basis for the support from the government, even if it is lower than the fixed price. You can see more about the power support here. Terms of agreement LOS predictable is a service from LOS where you have the opportunity to choose a fixed price in relevant periods throughout the year. LOS predictable is an additional product linked to the electricity agreement. Read the terms of agreement on the product here Money he would have liked to spend on Christmas presents and to pay off credit card debt is now locked to the electricity bill. – I am terribly afraid that I will have to see that agreement expire. I normally don’t have the money for that at all, he says. Los: – A choice the customers make But Los does not make a lot of money from these customers even though the electricity price has fallen. The electricity supplier buys electricity in advance at a specific price, and can therefore offer a fixed price. Los also offered customers a fixed price earlier this year, and it has paid off for the customers. Since the electricity price follows the fixed price, some customers have received more electricity support than the fixed price indicates. But the special thing from September is that the electricity price has fallen, and that the electricity subsidy covers over 90 per cent of the price above 70 øre. – Why has Los mentioned prices of NOK 10 to 20 to customers? – When we sent out the offer, we were clear that this is a choice the customers make. We cannot give any advice on whether it is a good price or not, and we are very clear about that, says sales manager Rolf Bjarne Eriksen. – Why did the customers need predictability when the electricity subsidy already provides price protection? – Los predictably wants a fixed price, and we send offers several times a year for that product, he says. – Do you think the customers understood that the electricity price must exceed NOK 40 for the fixed price to be profitable? – Los predictable is about predictability. When we send out the price, we offer customers predictability, he says. Eriksen says that customers were made particularly aware of the risk. He is referring to a wording in the e-mail that the aim is not to beat the spot price, but predictability. In addition, the company wrote that the electricity subsidy follows the spot price. Los advises customers to save electricity news has told Eriksen how customers like Fjeld experience the situation. – What do you want to say to these customers? – We understand that this is demanding, and we have bought the electricity at the price that was paid, and the advice we want to give is to look at the electricity consumption. If it is possible to reduce it, he says. – That is the advice you give to those in this situation, that you should lower your electricity consumption? – Yes, Los has already bought the electricity for the price we have agreed with the customers, says Eriksen. – Have the customers gained predictability with this fixed price agreement? – Los predictable is about giving customers a fixed price for short periods. They have got that. – Have they gained predictability? – Los predictable is about giving customers a fixed price for a short period, he repeats. Right of withdrawal mistake can save Christmas news has gained access to emails from several customers. And it turns out that there is hope that Christmas will be more spacious for fixed-price customers. None of the emails informs you about the right to cancel within 14 days. No one news speaks to says that they received information about the right of withdrawal over the phone. Customers must click on a link in the email to find out about the right of withdrawal, and follow links further to find the withdrawal form. – A link is not good enough. Then the information is not given as it should be according to the Right of Cancellation Act, says consumer lawyer Thomas Iversen at the Consumer Council. Consumer lawyer Thomas Iversen at the Consumer Council has seen the emails that Los sent to the customers, and is aware that the right of withdrawal still applies if the customers only received a link to the terms. Photo: Even Bjøringsøy Johnsen / news The information and an attachment with the right of withdrawal form should have been sent directly to the customers by e-mail, and all customers who did not receive this can still complain without paying a cancellation fee: – Precisely because the customers do not know that the right of withdrawal exists, the deadline is extended by 12 months. This agreement is only two months long, and that means you can cancel for the duration of the agreement, says Iversen. Los agrees that customers have a right of withdrawal But until Thursday, Eriksen had a different interpretation of the right of withdrawal act than the Consumer Council, and believed that Los was within the regulations. In a press release, Los says that customers can still use the right of withdrawal, and be moved back to the electricity contract they usually have with retroactive effect until 1 November. “Tonight and during the course of tomorrow, information will be sent out to all customers who have LOS Predictable and who have entered into an agreement on a fixed price for November and December, with a new right of withdrawal form. » Writes the company. Los has the burden of proof under the law that the customers have received the correct information. news asked several questions about how the information had been provided, but did not receive specific answers beyond the fact that there was a link in the e-mails that were sent out. Iversen says that customers who want to use the right of withdrawal can send an e-mail or say in the chat to the company that the information about the right of withdrawal was not as it should be according to the law, and that they want to use the right of withdrawal. If the company disagrees, it is free to appeal the matter to Elklagenemda. – Then you get an advisory statement that the electricity companies tend to follow, says Iversen.
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Got a fixed price of NOK 6.49 – now customers can withdraw – news Norway – Overview of news from different parts of the country
