1 January last year marked a shift in the Norwegian power industry. Then a great many online companies that were affiliated with a larger group had to change their name. The aim was to clearly separate the network companies from other activities, such as power generation or installation. In this way, the network companies – which have a monopoly on customers in a geographical area – should not be able to benefit from the marketing and recognition of, for example, the power company in the same group. This has led to 75 out of 94 online companies in Norway changing their name. But 19 of the online companies in Norway have been told that the name change is not in line with the regulations. The reason? The name and logo do not differ enough from other companies in the same group. These companies have received a notice of name change Order to change name: DE Nett KE Nett Lnett Meløy Nett RK Nett S-Nett SuNett Vang Energiverk Vonett Notice of change of logo: Indre Hordaland Kraftnett KE Nett Lysna Norefjell Nett Skiakernett Vang Energiverk Notice of change of name: iSalten Nett Kvam Energi Røros E-verk Nett Notice of change of logo and name: El-verket Høland Jæren Everk Telemark Nett Source: NVE Do not believe in name advantages One of these companies is iSalten Nett at Fauske in Nordland. – As a network company, we are used to being fully regulated by the authorities and used to NVE and RME setting clear guidelines for us. But here I think that perhaps the authorities have put a little too much resources into something that the ordinary man in the street does not care about. This is what managing director Ole-Morten Hansen says to news. In a decision from January, RME believes that the name iSalten Nett is too similar to the parent company Indre Salten Energi and the sister company Ise. At the turn of the year last year, there were new requirements that online companies that are part of a larger group must have a name and logo that is sufficiently different from the parent company. In this case, iSalten Nett is the network company, while Ise is the group they are part of. Photo: Lars-Bjørn Martinsen / news But Hansen believes that most people have barely noticed that the network company has changed its name. The company still experiences being referred to as Fauske Lysverk or Sørfold Kraftlag, despite the fact that these companies were merged in 2015 to form Indre Salten Energi. – So I don’t think many people care about the name. And that the subsidiaries in the group would benefit so much from the name, I have no faith in that. The company has now been given until 1 September to change its name. But the company has already submitted a new name proposal to RME: iSalten. – It is because RME says that we have “network” together with iSalten can make people associate that we are involved in the network, and that it becomes too similar to Indre Salten Energi. – But you are an online company… – Yes, we are. The Norwegian Energy Regulatory Authority (RME) believes that the name of the network company iSalten Nett is not sufficiently different from the Ise group. This means that both work vehicles and equipment must get new logos. Photo: Lars-Bjørn Martinsen / news Cost: NOK 1.5 million Voss has also received a letter from RME stating that the name change must be done again. – We feel this is unnecessary bureaucracy, and that there are no customers who really care, apart from the fact that it creates confusion. That’s what general manager John Magne Herre says in Vonett. Before the name change, the company was called Voss Energi Nett. RME believes that the name Vonett is too reminiscent of the other companies in the same group such as Voss Energi and Voss Fiber. – RME believes that “Vo” is the start of Voss. They may think so, but no one uses “Vo” as an abbreviation for Voss, says Herre. This is what Voss Energi’s work van looks like, compared to a similar one from Vonett. Customers thought the new name was a fraud – We have experienced customers who have wondered whether they have been exposed to online fraud after receiving an invoice from Vonett. So there are many who do not understand the connection with Voss Energy, Herre continues. Already last year, the company was notified that their name was in conflict. The company then responded to this letter within the response deadline. Then there was silence from RME for 9 months. – Then they will now come in January with an order to change the name. For a year, the online company has begun a major rebranding. Everything from work cars to special clothing has been printed with new logos. Now all the work could be wasted if RME gets what they want. – We have estimated the costs at one and a half million kroner. We have to find a new name, new logo, reprofile websites and everything from clothes and cars once again. It is the grid companies around Norway that own and operate the power lines that bring electricity to houses and shops. Photo: Marius Mellum/Eidsiva Parts of the cost will ultimately end up with the network companies’ source of income: the customers. – The Energy Commission says that we must build more networks, faster. So we will spend resources and time on this here. I think that is unmusical. – RME writes that they have encouraged online companies to get in touch to consult about new names. Have you done it? – No we have not. We believe, and have believed, that we are clearly different from the rest of the group. – Over-trusteeship – I think some of the companies think this is provocative and bears the stamp of a supertrusteeship, says Knut Lockert in the interest organization District Energy. He says the power industry faces major and demanding tasks in the coming years, with the development of both power grids and increased power production. – Then you don’t have time to keep up with this. Ultimately, it is the customers’ money that the online companies spend on this. Knut Lockert is general manager of the interest organization Distriktsenergi. Photo: Fredrik Kveen Because even if the online companies are to be separated from the group, they must still inform the customers who they are and who they work for. – Then we think it is strange that you should not know anything about the online company or what affiliation it has. He highlights the example of the power company Lyse and their network company Lnett. They receive packaging from RME so that the letter L can be interpreted as a connection with precisely the Lyse group. – But the paradox is that if there had been an E in front of that name, i.e. Elnett, then it would probably have been approved. I think that is a way of using resources and time that becomes silly. The Lyse group’s online company Lnett is one of the 19 companies that have been given marching orders to change their name. Photo: Kaj Hjertenes Nettselskapet Lnett has also complained about the decision from RME to the Energy Complaints Board. The company says so in a press release. – It is natural to think that more people have an immediate association with (E) lnett as a term, writes managing director Håvard Tamburstuen. – It is time-consuming to change names, it results in large additional costs and will confuse customers and others who have received information and dealt with Lnett for over a year. Following the regulations Director of the Energy Regulatory Authority, Tore Langset, says that the vast majority of companies have names that differ from others and that it is not a widespread problem in Norway. – The regulations state that the network companies must clearly distinguish themselves in marketing and communication from any power supplier and from companies in the group, of which it is a part. The regulations are about equal conditions of competition, and avoid confusing monopolistic business with business exposed to competition and vice versa. – The power companies and power suppliers conduct commercial activities and compete with other commercial players. Tore Langset is director of the Energy Regulatory Authority (RME). Photo: Stig Storheil / NVE There are 19 companies, which do not have a name that differs from the parent or sister company, which are obliged to change their name. – The vast majority have managed it, but there are some companies that we have found that do not, that use some form of abbreviation. – We have no point of view on what they should call themselves, but what we have a point of view on is whether they use the same geographical designation in the company name or use an abbreviation or something that can be perceived as an abbreviation. Otherwise, they are completely free to choose whatever name they want, as long as it clearly differs from other companies in the group. If the network companies are in doubt as to whether the name they intend to choose is in line with the regulations, they have the opportunity to ask RME for a preliminary assessment of it. – If you do not comply with a decision from us, it will most likely be that we make a decision on a compulsory fine that will accrue until they get their name changed.
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Online companies are reprimanded by RME and must change their name – costs millions – news Nordland
