In March, Meløy Energi was not quick enough to change its prices on the fixed price agreement. Thus, customers throughout the country could secure a lucrative fixed price agreement of 126 øre/kWh. This caused the orders to flow in, and the energy company incurred large financial losses, before they were able to stop sales. The company’s customer base increased by 15 per cent within half a day as a result of the “price stick”. In Northern Norway, 126 øre/kWh does not sound like a fantastic deal. But for people in the south, there is a lot to save. Especially when the average price is NOK 3.59 – as at the time of writing. The problem for Meløy Energi is that they have to buy the expensive electricity in the south and sell it for a cheaper price. – In a normal market we would have lost NOK 10 million, but in today’s market the consequence is of a completely different dimension, says general manager of Meløy Energi, Børge Selstad. One of those who secured the electricity contract was father of small children Espen Lühr in Horten. But when he was recently going to move 300 meters further down the street, and wanted to take the favorable electricity contract with him, he was refused by the electricity company. – They have got themselves completely wrong – They have got themselves completely wrong. I must not take the agreement with me, nor can I give the agreement away to those who now take over my flat, he says. Father of small children Espen Lühr was one of the customers in the south who secured the cheap fixed price agreement. Photo: Private – What does Meløy Energy say? – They say that they were in an extraordinary situation, and then the agreement could not apply. I have been flat out rejected by them twice. Now I’m sitting in a house without an electricity supplier, he says. There is no doubt that Lürhr was lucky to secure the fixed price contract. Electricity prices have recently been sky high in large parts of the country. This has saved him a lot of money. – With the electricity subsidy, the electricity bill has been between NOK 7-900. Now it will triple if I don’t get the deal, he says and continues: – But we are not the worst off. I know many people who pay NOK 4-5,000 more than what they are used to. Had to turn around The general manager of Meløy Energi, Børge Selstad, is open about the fact that they have looked at the possibilities of getting out of the electricity agreements that lead to losses of millions. – In a situation where the company is losing so much money, it is natural to examine the legal basis for reducing our losses. Photo: Meløy Nett Therefore, they have hired the law firm Simonsen Vogtwiig to see if the company could legally terminate customers on the move. – It concludes, beyond doubt, that the customer has the right to move the agreement to a new address. The customer will be informed of this in writing today. Selstad says he understands that it can be perceived as the company looking for opportunities to get out of the agreements. – We very well understand the customer’s frustration and apologize that we have not communicated better with the customer along the way. We could inform the customer that we were in the process of obtaining a legal assessment and that we would get back to him when this was ready. Has stopped with fixed price agreements He adds that he hopes people understand that the situation is very demanding for the small electricity company. – We also experience that the electricity subsidy scheme means that fixed-price customers make money by using as much electricity as possible. This further worsens the situation for Meløy Energi. – This group, unlike our spot price customers, does not have the same financial motivation to save electricity. Of course, we could not foresee such a power subsidy scheme either, he continues. Meløy Energi, like many other electricity companies in Norway, has now stopped selling fixed price agreements. – We have learned that such agreements involve too much risk for the power company today, taking into account the extreme electricity price market – A moment of irritation Back in Horten, Espen Lühr learns through news that the company has now turned the matter around. – It’s great if they finally do, but I haven’t received any confirmation yet. There has been a lot of management and a moment of irritation to be able to keep the electricity contract. In the meantime, he had to sign a new agreement with another electricity company. But it is without a commitment period, so he can cancel it at any time. Now he breathes a sigh of relief before the winter cold sets in and the electricity consumption in the household increases. – It saves us a lot. We have the agreement until the end of March. Then it gets warmer outside, and now we get to insulate our house too.
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Meløy Energi cannot get out of power agreements with losses of millions – news Nordland
