Proposal to End Costly Default Electricity Contracts

Customers who do not actively choose an electricity supplier are forced into expensive agreements today. Now, an investigation proposes that these so-called designation agreements be abolished.

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Proposal to End Costly Default Electricity Contracts
Photo: Johan Nilsson/TT

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Today, everyone has the opportunity to choose an electricity retailer. Those who do not will automatically receive a default contract. The problem for the customer is that it often becomes expensive.

Customers are paying an unreasonably high price, says investigator Bo Diczfalusy.

He therefore proposes that default contracts be abolished. Instead, he wants a system where the basic principle is that anyone who wants electricity delivery must sign a contract.

The number of default customers has decreased in recent years and is currently at eight percent of all customers. They often have low consumption and therefore do not always have to be severely affected by an unjustifiably high price. But regardless, the fact remains that default contracts have higher prices than other contracts, according to the investigator.

The proposal has now been submitted to Energy and Trade Minister Ebba Busch (KD).

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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