Tuesday , June 28 2022

Throws customers at a fixed price after electric shock – E24



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Electricity customers with favorable fixed price agreements with Agua Kraft are forced to enter a spot peak market. – Unlawful dismissals, says the Consumer Council.

Smile for the camera: The models smile on sale – but Agba Kraft receives criticism from both customers and consumer authorities.

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On Thursday, E24 wrote about the electricity supplier Agba Kraft, which is losing big on fixed price agreements that it used to buy new customers this summer.

The currently high spot price level of close to NOK 1.3 per hour per kilowatt means an average profit of up to NOK 1,213 per month for each customer who subscribes – and a corresponding loss for Agua Kraft.

Before the weekend, a number of fixed-price customers received a written notice from the company that they would be “transferred to a convenient spot price agreement” starting Nov. 1, as “a routine review showed they had an agreement that could only be used by new customers.”

The Consumer Council confirms to E24 that they have already received inquiries from 20 agave customers in the case.

– Many consumers had a fixed price agreement at a reasonable price with Agva. These agreements are binding, and Agba cannot terminate consumers while the fixed price agreement is in effect, senior adviser Thomas Iverson of the Consumer Council tells E24.

– That it will change the terms of a fixed price agreement is particularly convenient because the price of electricity is rising, undermining trust between consumers and electricity sales companies, he adds.

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– Illegal

E24 has seen documentation from some of the affected customers that they have received written confirmation from Agba Kraft about what the definition of a “new” customer was in relation to the campaign, i.e. who has not been a customer in the last 12 months.

However, a large proportion of them were thrown out of their agreements – despite the fact that they had not been customers of the company for several years before ordering.

Others claim to E24 that they were thrown out as well Never Was a client of the company in the past.

– Agba notes that consumers have received introductory offers that apply only to consumers who have not been customers in the last twelve months. Consumers who contact us, however, point out that this is not true, making the layoffs unjustified, Iversen says.

– Agave becomes the victim’s pricing strategy itself. Consumers do not have to pay for it.

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He emphasizes that at the end of the agreement, Agva Kraft must check whether the consumers meet the conditions related to the agreement.

“As a side of the professional factor, Agave must respond quickly if it turns out that individual consumers are in any case unfit to accept the agreement,” says Iversen.

Many inquiries: To the Consumer Council and Senior Adviser Thomas Iverson.

Since Agba Kraft began in 2015, the Consumer Council has recorded a total of 92 inquiries from consumers about the company.

– This is high compared to other and larger electricity sales companies. Among other things, there are two more applications from Hapslund, which is one of the largest electricity sales companies in Norway, says Ibersen.

Intention to the agreement

“Promotions will not normally be available to previous customers, but applicable requirements may vary from campaign to campaign,” writes Agua Kraft CEO and Chairman of the Board Finn Eric Arktander in an e-mail to E24.

“If someone is incorrectly informed that he is unfit, this will of course be corrected,” he further writes.

On Thursday, he stated to E24 that almost all IEC customers had spot price agreements, and therefore the company is slightly affected by high wholesale prices.

“It’s true that we had some fixed / summer price campaigns this summer / fall, but the contracts are only a very small part of the overall customer portfolio,” Arktander wrote in an email at the time.

Answer: Agva Kraft CEO Finn Eric Arktander.

However, the company now has the means to remove customers from those losing fixed price agreements.

Arktander writes that from the sales material for the campaign it is clear that the agreement cannot be signed by those who were customers in the past.

“But if individual customers are promised something else, we will of course be responsible for what is agreed with them,” Arktander writes.

Screenshots of the relevant advertisement were sent to E24, and here it is only written that “this is a promotional product that can only be ordered by new customers.”

However, it was not mentioned anywhere that you could not have been a customer before.

“Only for New Customers”: Screenshot from Agva Kraft’s Summer Fixed Price Campaign.

– Do you mean that you will keep the agreements only to those who asked, and thus you received a positive answer because they meet the requirements for receiving the agreement? But not for those who meet the requirements, but have never asked about it specifically?

“Of course the agreements are kept for everyone There have been no customers in the past, this is the main rule for this type of promotion. If anyone is happy Outstanding From here, we will also save the agreement for them, “Arkandander answers.

Regarding the statements of the Consumer Council, he says the following:

«Of course Agwa Kraft never changes the terms of an agreement that has already been entered into in a fixed price agreement. The manner in which the price of electricity develops has no effect on the agreements signed between the customer and Agwa Kraft, because that is the purpose of a fixed price agreement (that the price is fixed) “, writes Arkandander and adds:

“However, customers who are not eligible for promotion will be able to experience the termination of the agreement.”

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– I think a new customer is someone who is not a previous customer, says Patrick Johansson.

He is one of several customers at Agua Kraft who were notified yesterday that they will lose their fixed and profitable price agreement.

– Here they come with a breach of contract almost three months after they could immediately check that I was a customer until September 2018. This is a huge failure in the internal routine, and if you are conspiratorial, you can suspect they use it as a kind of valve when the market took a different direction than planned, says G. And Hanson.

Response: Agba Kraft customer Patrick Johansson.

He accepted the offer in July to tie his twelve-month electricity price to 44.9 ora per kilowatt hour. In November, it suddenly has a spot price of 1.3 crowns.

He is a member of the Facebook group Prismatch Strøm, where a poll yesterday showed that 29 members claimed they were wrongly thrown out of their fixed price agreement with Agwa Kraft. Johansson tells E24 that he will not be surprised if it ends in a class action lawsuit against the company.

Many of those who complain about the Facebook group state that they were customers several years ago, but some also claim that they never bought electricity from the company.

Agra Kraft’s Finn Eric Arktander was presented to E24 on Patrick Johansson’s statements, but did not respond to them.

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Can complain to the Elklagenemnda

Iversen in the Consumer Council notes that evicted customers can complain to the company and ask to keep the original fixed price agreement.

– If you do not agree, the case can be appealed to the Elklagenemnda. In the meantime, you may enter into a new agreement with each company, Ibersen says.

He further emphasizes that many companies may face challenges with the economy as a result of high electricity prices.

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In Thursday’s article, Pareto director Lars Ob Skorpen explained how the price level is particularly high Apply pressure on the liquidity of electricity companies.

The top of Pareto tells E24 that he will be surprised if no electricity companies exaggerate with the prices they are today.

“The Consumer Council is asking Norwegian electricity customers to monitor whether agreements and prices are changing,” says Iversen.

– If you have a fixed price agreement, it will apply until the end of the agreement period. If you have a non-binding agreement, you can switch to another and better agreement at any time

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