Norwegian energy firms to simplify customer contracts
A new standard contract framework for spot price energy agreements in Norway could be in place as early as this week. All energy companies in the country will have to abide by the standardised framework.
On Monday morning, Oil and Energy Minister Terje Aasland and Minister for Children and Families Kjersti Toppe met energy industry organisations to discuss a proposal for a standard spot price contract on the market.
"We must have energy contracts that everyone can understand," Minister Aasland said.
"The organisations have worked well and have put in place a standard spot price contract which they can present to the electricity sales companies during this week. This could be on the market within a very short time, perhaps as early as this week," Aasland told the Norwegian news bureau NTB.
Nearly 90 percent of residents in Norway are on spot price agreement contracts.
Making things easier for customers
Norwegian electricity companies have received a lot of criticism recently, among other things, for "tricking" electricity customers into expensive contracts that customers are not in a position to understand, NTB reports.
A standardised spot price contract would mean that the only thing that can differentiate the companies and their offers is how big a markup they have per kilowatt-hour, as well as their monthly fee.
That will make it much easier for electricity customers to compare contracts and offers, according to Aasland.
"There is a host of different electricity contracts (on the market), and it is incredibly complicated to deal with all the existing contracts. One standard contract offered by all companies will make things much easier for customers," he said.
Tighter rules
Aasland has previously announced that he would crack down on companies that break the regulations.
"Now we have sent this proposal to the Norwegian Energy Regulatory Authority (REM), which regulates the licences, and asked them to look at how the licenses can become more difficult to get and easier to lose," he said.
According to Aasland, the REM could provide the Ministry with an answer before the summer.
Renewable Energy Norway: Good news for customers – and companies
Renewable Energy Norway believes that the new standardised contract is good for both electricity customers and electricity companies.
"It makes it easier to navigate the market and ramps up the competition," Toini Løvseth at Renewable Energy Norway said.
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On Monday morning, Oil and Energy Minister Terje Aasland and Minister for Children and Families Kjersti Toppe met energy industry organisations to discuss a proposal for a standard spot price contract on the market.
"We must have energy contracts that everyone can understand," Minister Aasland said.
"The organisations have worked well and have put in place a standard spot price contract which they can present to the electricity sales companies during this week. This could be on the market within a very short time, perhaps as early as this week," Aasland told the Norwegian news bureau NTB.
Nearly 90 percent of residents in Norway are on spot price agreement contracts.
Making things easier for customers
Norwegian electricity companies have received a lot of criticism recently, among other things, for "tricking" electricity customers into expensive contracts that customers are not in a position to understand, NTB reports.
A standardised spot price contract would mean that the only thing that can differentiate the companies and their offers is how big a markup they have per kilowatt-hour, as well as their monthly fee.
That will make it much easier for electricity customers to compare contracts and offers, according to Aasland.
"There is a host of different electricity contracts (on the market), and it is incredibly complicated to deal with all the existing contracts. One standard contract offered by all companies will make things much easier for customers," he said.
Tighter rules
Aasland has previously announced that he would crack down on companies that break the regulations.
"Now we have sent this proposal to the Norwegian Energy Regulatory Authority (REM), which regulates the licences, and asked them to look at how the licenses can become more difficult to get and easier to lose," he said.
According to Aasland, the REM could provide the Ministry with an answer before the summer.
Renewable Energy Norway: Good news for customers – and companies
Renewable Energy Norway believes that the new standardised contract is good for both electricity customers and electricity companies.
"It makes it easier to navigate the market and ramps up the competition," Toini Løvseth at Renewable Energy Norway said.
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