Customers Tricked Into Agreements Where Electricity Companies Break the Law

Electricity customers in Sweden are being lured into contracts with long binding periods, often without realizing they haven't signed a legally valid agreement. Ylva Lövqvist, a legal expert at the independent Energy Markets Inspectorate, reports that the agency receives complaints almost weekly from customers who have been signed up for deals with hidden services and extended terms.

“

Regardless of how you sign an agreement during a phone call, it is invalid as long as you do not sign it after the call.

Lövqvist emphasizes that any contract agreed upon during a phone call, even if signed with BankID, is invalid unless the customer provides written confirmation after the conversation concludes. This protection is part of the Distance Contracts Act, designed to shield consumers from aggressive sales tactics and provide a cooling-off period.

“

Companies trick customers into verbal agreements. Sometimes customers have not understood that they have entered into an agreement. In other cases, consumers call, desperate because they have not understood that it is an electricity contract tied to five years.

Some energy companies allegedly insist that verbal agreements are binding, even when customers claim they did not understand the terms or the duration of the contract. Lövqvist advises customers to stand firm in disputing such agreements and escalate the matter to the National Board for Consumer Disputes or even the district court if necessary.

“

If the customer tries to dispute the agreement, some electricity companies insist that the agreement is valid despite having been made during a phone call. Then, as a customer, you should stand your ground and take the matter further to the National Board for Consumer Disputes and, if necessary, to the district court.

With electricity prices expected to remain high, Lövqvist recommends that consumers carefully consider their usage habits when selecting an electricity plan. Those with consistent consumption might benefit from a fixed-price contract, while individuals who can actively adjust their usage based on daily price fluctuations may find hourly or quarterly pricing more advantageous. Historically, variable pricing has been the most cost-effective, though fixed-price contracts offered significant savings during the price surges of 2022 and 2023.

“

If you have consistent electricity consumption and want predictable costs, you can fix the electricity price. If you can actively adapt your consumption to the electricity price development during the day, perhaps you should have an hourly or quarterly price agreement. Over time, the variable electricity price has been the most favorable.