Your electricity contract
Ditt elavtal - Engelska
There are several reasons why you might want to change your electricity contract and sign a contract with a different electricity provider. Sometimes there may be lower-cost options that suit your finances better, and sometimes it may be the origin of the electricity that determines which electricity contract or electricity trading company you prefer.
Translated page: This text has been translated from Swedish. The text and appearance of the page may look different from the original page.
Keep these things in mind when choosing a new electricity contract
Find out if you have a fixed term or commitment period in your current electricity contract and what your notice of cancellation period is.
If you break your current contract before the end of the term, there may be a cost.
Compare different electricity providers before signing a new contract.
Terminate your current contract (preferably by e-mail) with your electricity supplier. It will not end automatically.
Find out how other consumers feel about their electricity company.
Power of attorney to sign an electricity contract
If you have given a power of attorney to an electricity broker or an electricity intermediary, this means that they can enter into an electricity contract on your behalf. Such a power of attorney can be either written or oral.
How should the power of attorney be formulated?
The wording of the power of attorney determines what the company can do. Therefore, you should make sure that the company is only authorised to enter into "electricity contracts” on your behalf. You should also make sure that the power of attorney is limited in time. If no expiration date has been specified, in order for it to no longer be valid you will need to explicitly revoke the power of attorney.
Revoking a power of attorney
If you no longer want the holder of the power of attorney to be able to sign electricity contracts for you in your name, you need to revoke the power of attorney. By revoking the power of attorney you can prevent the authorisation from being used to enter into new contracts. This also applies to time-limited powers of attorney. This means that you have the right to revoke the power of attorney prior to its period of validity ending.
Revoke the power of attorney in writing
You should contact the company in writing (for instance by e-mail) to show that you have revoked the power of attorney. In addition, you can ask the company to confirm their receipt of your notification that the authorisation under the power of attorney has been revoked.
Service commitment period and notice of cancellation period
It is common for electricity contracts to have both a service commitment period and a notice of cancellation period.
Commitment period
A service commitment period means that you are locked into the service for an agreed period of time. If you decide to withdraw from the contract before the end of the service commitment period, the electricity provider may insist that you pay for the entire commitment period. In most situations you will receive a final bill for the full amount due for the remaining part of the commitment period.
Notice of cancellation period
The notice period means that you need to give the company advance notice that you intend to cancel the contract. For example, if you have a two-month notice period, you will need to give notice two months before the date you want the contract to terminate.
The contract must specify the term of the commitment period and notice period. You can also contact your current electricity company to enquire about the duration of your contract and the terms and conditions.
Automatic contract extension
Many electricity contracts are automatically extended unless you actively contact the company to terminate the contract. This can sometimes be the reason why you have been charged a contract cancellation fee or are unable to change your electricity supplier as you would like.
In order for the company to have the right to automatically renew the electricity contract the contract must include a clause stating that it will be automatically renewed. The company is also under an obligation to remind you of this before the contract extension.
Cancel your existing electricity contract
When you are about to sign up for a new electricity contract, it is common for the electricity company to offer to assist you in terminating your current contract. However it is advisable that you also notify your existing electricity company in writing. This can be done for example by sending an e-mail to confirm that you are cancelling the contract. This way if necessary you then have evidence showing that you have given notice to withdraw from the contract and when you have done this, and can avoid any misunderstandings.
The electricity company cannot require you to give notice in any specific way, for example by phoning in your notice of cancellation.
Compare different electricity contracts
Before you sign a new electricity contract, it is a wise to compare the different electricity providers on the market and the contracts they offer. Both the prices and the commitment/notice of cancellation periods and terms can differ greatly.
Before you change your electricity supplier, it can be useful to look at feedback from other consumers about various electricity companies. The Swedish Consumer Energy Markets Bureau maintains a list of the companies that have received the most complaints. Complaints may concern any of various different issues, such as incorrect bills and misleading marketing.
List of companies on the website of the Swedish Consumer Energy Markets Bureau
Elpriskollen.se
Elpriskollen.se is an independent price comparison site where you can compare different electricity contracts. The website is run by the Swedish Energy Markets Inspectorate. All electricity trading companies must submit their electricity contracts and prices to Elpriskollen.se for registration, which means that the website will have all available electricity contracts in its comparisons.
Requirements for written confirmation with telephone sales
If you are rang up by a salesperson soliciting a contract or a purchase and you accept the offer over the telephone, for the contract to be valid you must also confirm your acceptance in writing. In other words, it is not sufficient to agree during the telephone call, the requirement is that you also need to provide written acceptance after the telephone call.
This written confirmation can be made by SMS or e-mail. It is also acceptable to sign the contract with a Bank ID. If you have not agreed to the contract in writing, the contract is invalid and the electricity company cannot require you to pay anything. It is up to the electricity company to prove that you have accepted the contract in writing.
There is no requirement for a written confirmation when you, on your own initiative, call the electricity company.
Do you have the right of withdrawal?
If you enter into an electricity contract via a distance/off-premises sale, for example online or over the telephone, you can exercise your right of withdrawal within 14 days. The 14 days begin counting the day after you entered the contract.
If the company has not properly informed you of your cooling-off period and the right of withdrawal, the cooling-off period can be extended up to one year.
If you change your mind and want to cancel the contract, it is a good idea to inform the company in writing, for example by e-mail. You will then have a written record that you changed your mind and when. Further information about the right of withdrawal on the website of the Swedish Consumer Energy Markets Bureau (In Swedish)
Receiving a bill without having entered into a contract
If you receive a bill even though you have not agreed to a new electricity contract, or a bill that you think is incorrect, you can dispute the bill. You can do this by writing to the electricity company and explaining that you do not intend to pay the bill and why. It is important that you contest the bill in writing so that you will have documentation you can present if necessary to show you disputed it and when.
Can the electricity company change the contract?
In order for the electricity company to be allowed change the price, it must be stated in the terms and conditions. Therefore, read the terms and conditions if the company wants to make changes.
If you think the electricity company have made a mistake or that the increase is unreasonably excessive, you should start by complaining to the company. Do this in writing, for example via email, so you have documentation of what you performed and when.
If you and the company cannot reach a mutually agreed solution, you have the option of asking the National Board for Consumer Disputes (ARN) to become involved by filing a request for assistance with them. It costs SEK 150 to file a complaint with ARN.
Submit an application on ARN’s website
Can the electricity company cancel the contract?
The principle rule is that contract must be kept by both you and the company. This means that both parties are bound by the agreement. But in some cases the company may have the right to cancel the agreement.
Force majeure
Force majeure is a legal term for unexpected or unforeseeable events, and is used for situations where it is impossible for the company to fulfill its part of the agreement. There is no requirement that the contract should include which events are considered force majeure, but it is useful if it is included, and preferably as clearly as possible.
Natural disasters, war, labor disputes and similar are often referred to as force majeure. In order to be able to claim force majeure, it is required that there is a connection between the event and the breach of agreement. If the company claims force majeure, they need to be able to prove it.
The Swedish Consumer Energy Markets Bureau provides guidance
If you have problems or questions about your electricity contract, you can contact the Swedish Consumer Energy Markets Bureau. The Swedish Consumer Energy Markets Bureau is an expert in consumer issues related to electricity, gas and district heating. They provide free and independent advice.
Source: Konsumenternas energimarknadsbyrå
Proofread: 1 March 2023