The Norwegian government’s efforts to facilitate a more consumer-friendly electricity market are thoroughly discussed in our episode of the podcast Energisk called “Electricity Contracts Explained Briefly,” where we provide a basic introduction to electricity contracts and discuss several measures the government has proposed. Listen to the episode here.
Key Proposals from the Government:
- Increased Authority to Revoke Sales Licenses: The government proposes granting the Regulatory Authority for Energy (RME) the authority to revoke sales licenses under § 4-1 of the Energy Act in cases of severe or repeated violations of the Energy Act, its provisions, and other specified provisions. The proposal effectively means that it will be easier for electricity suppliers to lose the right to sell electricity.
- Authority for the Consumer Authority and the Market Council to Conduct Supervision: The government proposes granting the Consumer Authority and the Market Council the authority to oversee compliance with the proposed changes. The proposal also entails that these bodies may impose fines for significant or severe violations of the relevant regulations.
- Introduction of a 24-Hour Cooling-Off Period: The government proposes a cooling-off period for the sale of electricity supply contracts through telephone sales, door-to-door sales, sales at stands, and in-store sales. The proposal requires that consumers can only accept offers for such electricity supply contracts 24 hours after receiving the offer. The acceptance must be in writing, and the electricity supplier must subsequently be able to document the consumer’s acceptance.
- Stricter Requirements for Information about Termination Fees: The government proposes that if an electricity supply contract includes terms for costs upon termination (termination fees), a calculation example must be provided in the contract terms to show how these costs are calculated. Furthermore, upon the consumer’s request, the electricity supplier must provide any potential cost of terminating the contract free of charge and within five business days.
- Increased Opportunity for Termination from the End User’s Side: The government proposes that if an electricity supply contract allows the electricity supplier to make unilateral changes to the agreement, any change detrimental to the consumer can only take effect 30 days after the consumer has received written notice of the change. Furthermore, the consumer is given the opportunity to terminate the contract free of charge prior to the implementation of the change.
The bill has now been reviewed by the Norwegian Parliament and sanctioned by the King in the Council, and the amendments to the law will take effect from July 1, 2024.
Read the bill here (in Norwegian).
