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Appendix A: Roles and regulations in the Nordic countries

An overview of the regulatory frameworks in the Nordic countries


Table 10‑3: Regulatory frameworks in the Nordic countries
 
Denmark
Finland
Iceland
Norway
Sweden
Retailer requirements
 
 
 
 
 
Vertical integration
Unbundling requirements apply to vertically integrated DSOs with more than 100,000 connected customers.
The DSOs are required to be legally unbundled when a threshold of 200 GWh is met for more than three consecutive years.
A single power company can function as generator, distributor, and supplier. Accounting separation is required between concession and competitive activities.
Unbundling requirements apply to vertically integrated entities that have been assigned system responsibility or have more than 100,000 network customers.
Provisions that prohibit the involve­ment of electricity grid companies that are a part of a group that collectively serves at least 100,000 electricity users with companies who trade or produce electricity.
Invoicing
 
 
 
 
 
Required information on invoice
Requirements presented in Executive Order no. 1696 of 2020. One invoice from the electricity supplier.
Requirements regarding the minimum information to be presented in the invoice. Possible with one invoice or two invoices.
Requirements follow government regulation. Two invoices, one from the electricity supplier and one from the DSO.
Requirements are specified in the Regulations on settlements. Possible with one invoice or two invoices.
Requirements follows from the Electricity Act. Possible with one invoice or two invoices.
Possibility of prepayment or post-payment
Both possible.
Both possible.
Only post-payment.
Both possible.
Both possible.
Contracts
 
 
 
 
 
How to enter new agreement
Free to change electricity supplier; the new supplier notifies the previous supplier.
Free to change electricity supplier; the new supplier notifies the previous supplier.
Free to change electricity supplier; the new supplier notifies the previous supplier.
Free to change electricity supplier; the new supplier notifies the previous supplier.
Free to change electricity supplier; the customer should contact the current supplier to terminate their current agreement.
Lock-in periods and right to withdraw
Maximum lock-in period of six months for households, no corresponding rules for SMEs. 14-day right of withdrawal if the contract is a remote sale.
Maximum lock-in period of 24 months for fixed-price contracts. 14-day right of withdrawal if the contract is a remote sale.
Customers can terminate their contract with three months or shorter notice. Three weeks’ notice for households and SMEs with consumption less than 0.5 GWh per year, three months for consumption between 0.1 and 1 GWh per year, and longer for consumption over 1 GWh per year.
Maximum lock-in period of 12 months, with the exception of fixed-price contracts. 14-day right of withdrawal if the contract is a remote sale.
No maximum lock-in period except for assigned-price contracts, which have a maximum 14-day lock-in period. 14-day right of withdrawal if the contract is a remote sale.
Requirements on how to find information about contracts
Electricity suppliers are required to ensure that relevant and correct information about all their products, including price and terms, is available at all times on their website. In addition, electricity suppliers are obligated to publish their current prices and products on the price comparison tool.
Electricity suppliers are obligated to report contract prices for small customers (applies to households and many SMEs) to the NRA. 
No requirements, but the information is available at the price comparison tool.
Electricity suppliers are required to have an up-to-date price list readily available. Electricity suppliers are obligated to register their prices on the price comparison tool.
Electricity suppliers are required to provide certain information about their products and services, such as price and terms of the contract, on their website or in other easily accessible channels.
Requirements when making changes to existing contracts
The electricity supplier must directly notify customers of changes in the contract conditions. At least three months’ notice for households and 14 days for SMEs.
The electricity retailer must notify customers of changes to pricing or terms of an open-ended contract at least 30 days before.
The electricity retailer can change the contract whenever they want and publish information about the changes on their website. Customers who have signed up can receive an email about the changes.
The electricity supplier must notify the consumer of all changes to or termination of the electricity agreement no later than 30 days before the change or termination of the agreement takes effect.
The electricity supplier must notify customers about the changes and their right to terminate the agreement. At least two months’ notice for households and 14 days for SMEs.
Marketing
 
 
 
 
 
Required information to include in marketing of contracts
Follows from the general marketing regulations.
Follows from the general market regulations.
Follows from the general market regulations.
Follows from the general marketing regulations. New and stricter rules were introduced in November 2022, which largely meant a clarification of requirements from the Marketing Act.
Follows from the general marketing regulations.
Win-back strategies, telephone sales, or selling contracts on the street
Allowed with win-back strategies and telephone sales, but the customer must have consented to be contacted. This applies to households but not SMEs.
Allowed with win-back strategies.
Allowed with win-back strategies. No telephone sales or direct sales on the street.
Allowed with win-back strategies, which can take place by telephone, at the door, and in writing.
Allowed with win-back strategies, but it must occur following certain rules.
Sanctioning
 
 
 
 
 
Can licences be withdrawn?
No licence required. The electricity retailer can be deprived of the right to be registered at DataHub.
No licence required.
Retailer licences can be withdrawn.
Retailer licences can be withdrawn.
No licence required.
SMEs’ customer rights
Electricity supply regulation applies to both households and SMEs, but some points apply to SMEs to a lesser degree.
Many of the electricity market-specific regulations applies to SMEs.
Consumer protection covers both households and SMEs.
SMEs do not have the same consumer rights as households.
SMEs do not have the same consumer rights as households.

Denmark

Role and responsibilities of different actors

Several authorities supervise whether electricity suppliers comply with the legislation. This applies to both the sector-specific legislation, which only applies to electricity suppliers in the energy market, and general legislation that applies to all companies across industries.

The Danish Utility Regulator (DUR)

The Danish Utility Regulator (DUR) is the national regulatory authority in Denmark for the markets for electricity, natural gas, and district heating. The DUR monitors the development of these markets and seeks to maintain strong and effective supervision of the utility sectors, with the purpose of securing consumer interests in the utility sectors. Hence, ensuring that the utility and supply sectors are well-functioning and that the actors follow current rules and regulations is one of the DUR’s main responsibilities.
The tasks of the DUR appear in the Law on the Danish Utility Regulator as well as the sectoral laws and EU regulations. They also appear in the sector laws on electricity supply, on gas supply, on heat supply, on the promotion of renewable energy, on the promotion of savings in energy consumption, and on amendments of the “lov om miljøbeskyttelse”. The DUR has five main tasks: supervision, approvals, economic regulation, international cooperation, and analysis and monitoring.
 The DUR publishes a number of reports that are typically based on analyses and monitoring of the electricity, gas, and district heating markets. The DUR is responsible for monitoring and analyzing conditions in the utility sectors, including compliance among electricity retailers.
The DUR monitors electricity prices on the retail market for households and SMEs. Among other things, it prepares electricity price statistics as part of its monitoring activities. The electricity price consists of several elements: the trading company’s electricity price, subscription, grid subscription, grid tariff, transmission tariff, taxes, PSO, and VAT. As part of its monitoring, the DUR prepares electricity price statistics every quarter. These statistics indicate the average electricity price for households and SMEs in Denmark with a consumption of less than 100,000 kWh per year.
Consumers in Denmark can buy electricity from many different electricity suppliers that offer a number of different products. The electricity price guide in Denmark is called Elpris.dk and provides information about all the electricity products and electricity prices offered in the country. The site also provides consumers with some basic advice around choosing a product and a supplier. Hence, the purpose of the comparison tool is to increase transparency and customer awareness with regard to products and prices in the electricity retail market.
The DUR is responsible for establishing and maintaining the electricity price guide with information on electricity prices, discounts, and terms in the Danish electricity market. Electricity suppliers that sell electricity to Danish customers are obligated to publish their current prices in the electricity price guide. 
A number of legal measures have been introduced to ensure that consumers in Denmark are not left without power, for example, if consumers move or if their electricity supplier goes bankrupt. In such cases, the consumer can access electricity without having a contract, and it is the DUR that determines the price that corresponds to the market averag.

The Danish Energy Agency (DEA)

The Danish Energy Agency (DEA) operates under the Ministry of Climate, Energy and Utilities and manages the legislation on the electricity market in Denmark. The DEA and the DUR share responsibility regarding laws and regulations. The DEA is responsible for implementing European legislation into Danish legislation. It monitors and develops the energy and supply sectors in Denmark by administering the legal framework for production, transmission, and distribution of electricity, and for competition, consumer protection, and security of supply. Energy production, supply, and consumption, as well as Danish efforts to reduce carbon emissions are tasks for which the DEA is responsible. In addition, it is responsible for user conditions, supply obligation, and telecommunication statistics.
The DEA offers advice and guidance to private customers to understand their electricity consumption. Private customers can obtain information about the average consumption for different types of households.

The Danish Consumer Ombudsman (DCO)

The Danish Consumer Ombudsman (DCO) is an independent authority that super­vises that companies comply with the Danish Marketing Practices Act and other consumer protection legislation, especially from the point of view of consumers. It is free to contact the DCO for both households and SMEs.
 The DCO attaches great importance to preventative information and guidance on the Marketing Act for electricity suppliers by continuously preparing guidelines in collaboration with business and consumer organizations.
The DCO addresses, among other things, cases con­cer­ning electricity retailers’ telephone sales, the conclusion of agreements in general, and the marketing of green electricity and prices (including fees). In the case of serious violations of consumer protection legislation, the DCO processes cases with a view to criminal sanctions. The DCO does not address con­crete financial disputes between a consumer and an electricity retailer, but instead refers the consumer to the Ankenænet på Energiområdet (ANE).

Danish Competition and Consumer Authority (DCCA)

The Danish Competition and Consumer Authority (DCCA) is a government agency under the Danish Ministry of Industry, Business and Financial Affairs that monitors the markets in Denmark. The primary tasks of the DCCA are to contribute to the development of new policies and regulation. The DCCA considers both competition and consumer aspects when analyzing the market and putting forward recommendations to consumers and companies. In addition, through the formulation of guidance notes on legal and practical matters, the DCCA produces market analyses and advises the relevant public authorities. Together with the Danish Competition Council, the DCCA forms an independent competition authority. It is the Competition Council that makes decisions on major matters of principle.
Regarding competition matters, the main task of the DCCA is to enforce the Danish Competition Act. The DCCA tracks down and acts against violation of the Competition Act, assesses major mergers, and informs and guides companies about the regulations. The DCCA has the authority to impose sanctions for violations of the Competition Act. For consumers, the DCCA is responsible for enforcing a number of consumer protection laws. Interaction between consumers and businesses to make markets work well and create growth and high consumer welfare is supported by the DCCA. Forbrug.dk is the DCCA’s hub for public consumer advice, offering guidance on consumer rights. In sum, the DCCA contributes to:
  • The development of new consumer policy and regulations
  • Considerations of consumer complaints
  • Market analyses and communicating information regarding consumers to both consumers and businesses.
The DCCA is responsible for a number of laws in the competition and consumer field. Those that are relevant to the retail market include:
  • The Danish Competition Act
  • The Danish Act on Information Society Services (including e-commerce)
  • The Danish Act on Protection of Consumer Interests
  • The Danish Marketing Practices Act.
The DCCA also provides analyses about the competitive situation in the retail market in Denmark.

Green Power Denmark

Green Power Denmark is Denmark’s green non-commercial business organization, which works to ensure that Denmark is electrified with green electricity as soon as possible. Green Power Denmark was founded on 23 March 2022 through a merger of Dansk Energi, Wind Denmark, and Solar Power Denmark. The organization states that electricity is the engine of the green transition. It represents companies in the renewable energy industry, owners and developers of renewable energy systems, electricity retailers, DSOs, energy trading companies, and companies working to refine, convert, and store green electricity.
Green Power Denmark has around 1,500 members and represents the energy industry, large and small owners and installers of energy technology, and companies that operate the Danish electricity grid and trade in energy. The organization offers guidance and advice to its members, as well as publications and reports. These publications address topics such as analysis, natural energy, policy papers, recommendations, statistics, and technical reports. The organization offers indicative terms of agreement and procedures for electricity suppliers, as well as standardized terms of cooperation between grid companies and electricity suppliers regarding the use of the electricity grid. Green Power Denmark also provides courses targeted at the energy industry. Topics for these courses vary and include technical courses, law and network economy, and markets and energy systems. In total, 35 electricity retailers are members of Green Power Denmark.
Green Power Denmark’s Standard Agreement (“Standardaftalen”) between grid companies and electricity suppliers on use of the distribution network regulates the cooperation between grid companies and electricity suppliers. Electricity suppliers can use this agreement to access information about the distribution of responsibility and payment conditions.
 When the Standard Agreement is used, the individual grid company must submit documents for approval to the DUR before the grid company can use them.

Forbrugerrådet Tænk

Forbrugerrådet Tænk is an independent member organization that works to secure consumers’ rights. Its aim is to ensure that all consumers can make safe choices by strengthening their agency. Over 30 organizations are members of Forbrugerrådet Tænk, from trade unions and interest groups to patient groups and consumer groups. The council assembly is the highest body and determines which consumer policy goals Forbrugerrådet Tænk must work towards.
Both members and non-members of Forbrugerrådet Tænk can use the website and telephone service to request consultancy regarding their rights as consumers, including purchase law, right of complaint, complaints, and marketing. Forbrugerrådet Tænk also offers information and proposals regarding current topics. Due to the energy market not functioning properly, Forbrugerrådet Tænk has presented 20 concrete proposals regarding a safe energy market.
 It has also conducted several tests on electricity agreements and electricity retailers to help customers choose the retailer and contract that is most favourable for them. In addition, it provides general information regarding electricity to customers, such as how they can become more self-sufficient, how to save money on their electricity bill, and how to understand their electricity bill.

Ankenævnet på Energiområdet (ANE) – The Energy Supplies Complaint Board

Civil complaints from consumers against energy companies established in Denmark are handled by the Energy Supplies Complaint Board, a privately approved complaint board. This means that the Board’s activities are laid down in its statutes, which must be approved by the Minister of Business in accordance with § 6 of the Consumer Complaints Act. Members of the Board are Green Power Denmark, Evida Holding A/S, Dansk Fjernvarme, and Forbrukerrådet Tænk.
The Complaint Board handles complaints regarding the purchase and delivery of electricity, natural gas, district heating, and other associated commodities and services. It covers both general consumer protection and sector-specific legislation in its processing of a complaint. The Complaint Board only handles complaints from household consumers, although it can deviate in exceptional cases. The consumer must be or have been in a direct customer relationship with the company for the Complaint Board to handle the complaint.
 A fee of DKK 160 is due when submitting a complaint to the Board. The Complaint Board provides information regarding several topics to consumers in the electricity market on their website. It also regularly writes articles on legal themes that are of interest to both consumers and electricity suppliers. The purpose of these articles is to prevent future complaints and provide broad information about the Board’s practice in selected areas.

Energinet

The Danish TSO, Energinet, is a non-profit company owned by the Danish Ministry of Climate and Utilities. Energinet owns, operates, and develops the transmission systems for electricity and gas in Denmark and is therefore responsible for the daily operation of the electricity system and for maintaining security of supply. This is done by ensuring a balance between consumption and production in the electricity system, such that the electricity grid always maintains the electrical voltage. The regulatory authority for Energinet investments is divided between the DEA and the DUR.
Energinet owns and operates DataHub, an IT system that stores all data on electricity consumption in Denmark. In addition, it handles the communication and business processes between the market players in the electricity market.
 Among other things, Energinet monitors that electricity retailers’ registrations of their consumers on DataHub are correct. This includes an electricity retailer’s registrations of a consumer’s change of retailer, a consumer moving in and out of the country, as well as other changes of address and interruption of electricity at a consumer’s residence. All consumers are billed based on the information in DataHub.

Relevant regulations

Most Danish energy savings legislation comes from EU legislation, such as the Energy Efficiency Directive and the Energy Performance of Buildings Directive, while the national line is largely laid down in the Energy Agreement from 2012 and the latest Energy Agreement from 2018. Most legislative changes in the consumer field are also derived from EU legislation, while the DCCA is responsible for preparing new bills and proposed amendments to existing Danish regulation.
In cooperation with external stakeholders and electricity suppliers, in January 2022 the DUR launched an updated and improved platform for energy consumers. The DUR works continuously to ensure that the Danish electricity comparison tool, Elpris.dk, supports the green transition and encourages customers to participate and be more active in the retail market.
 The electricity suppliers that sell electricity to Danish customers are obligated to publish their current prices on Elpris.dk. Hence, the suppliers are responsible for the products and prices being kept up-to-date.
In June 2018, the legislation on security of the electricity supply was changed. The Minister for Energy, Utilities and Climate now sets the desired level of security of supply, formalizes the annual report from Energinet, and regulates payments for services related to security of supply.

The Danish Climate Act

Market Model 3.0 seeks to develop a more flexible electricity market to support the transition towards a climate-neutral society. The effective implementation of Danish and European climate and energy objectives has been the starting point of Market Model 3.0. The Danish Climate Act from 2020 has the target of reducing greenhouse gas emissions and establishing Denmark as a standard-bearer in the international green transition.

The Electricity Supply Act

The purpose of the Electricity Supply Act is to ensure that the electricity supply in Denmark is organized and implemented in accordance with the needs of security, economics, environment, and consumer protection. Within this objective, the Act must guarantee consumers access to cheap electricity. Energy suppliers not regulated by the Act are entitled to a compensation payment of CO2 taxes.
 The Electricity Supply Act also provides information regarding invoicing in the retail market.

The Danish Competition Act

The Danish Competition Act sets out to promote efficient resource allocation in society through workable competition for the benefit of undertakings and consumers.
 Competition cases are identified through market research, discussion with market players, and cooperation with other competition authorities. Businesses and citizens also submit a number of enquiries about competition matters. In addition, the DCCA oversees mergers and requests from companies for exemptions and non-intervention statements in relation to parts of the Danish Competition Act. Any major and principal infringements of the Danish Competition Act are examined by the Competition Council.

Finland

Energy Authority (National Regulatory Authority)

The Energy Authority (Energiavirasto) is the authority regulating the energy sector, covering the electricity and gas markets and networks, renewable energy, EU emissions trading, and energy efficiency domains. The role and mandate of the Energy Authority is dictated by the Energy Authority Act and includes regulating, monitoring, and improving the functioning of electricity markets.
The Energy Authority monitors the electricity markets based on the mandate and targets given in the Electricity and Gas Market Monitoring Act, which is applied to tasks including monitoring the implementation of national and EU electricity market legislation as the National Regulatory Authority. In the retail electricity markets, the Energy Authority provides oversight for the fulfilment of legal requirements retrospectively; it does not monitor contractual matters.
The Energy Authority also manages the price comparison tool Sahkonhinta.fi to fulfil the EU regulation requirement on electricity price comparison tools.

Finnish Competition and Consumer Authority (FCCA)

The role of the FCCA (Kilpailu- ja kuluttajavirasto, KKV) is to ensure the efficient functioning of the market to benefit the national economy and consumers. The FCCA’s tasks are given in the Act on FCCA, which includes a proactive role in initiating activities concerning developing competitiveness, dismantling anti-competitive practices, and bolstering consumer policies. In addition, it is tasked with monitoring competitiveness based on the Competition Act, organizing studies within its domains as well as consumer guidance, and adopting a separate role as Consumer Ombudsman. The role of the Consumer Ombudsman is focused on monitoring marketing activities and contractual matters related to consumers. The role of the FCCA in the electricity market has been elevated since the energy crisis and its impact on the electricity retail markets, specifically competitiveness and consumer matters.

Consumer Disputes Board

The Consumer Disputes Board is the alternative dispute resolution (ADR) body for consumer matters in Finland. The Board consists of independent experts offering a free-of-charge resolution alternative to court proceedings in matters related to all consumer goods and services. The Board is established based on the Consumer Protection Act, and its sections consisting of business and consumer representation provide non-binding recommendations. In 2023, the Board issued recommendations related to the fairness of pricing of indefinite-length contracts and termination of fixed-price fixed-term contracts in the context of the energy crisis.

Energy Market Disputes Board

In addition to the Consumer Disputes Board, an Energy Market Disputes Board has been established in Finland with a focus on alternative dispute resolution in matters between an energy company and a non-consumer end-customer. The Board is governed by the Energy Market Disputes Board Act, which came into force at the beginning of September 2023 and gave the mandate to provide resolution recommendation in the limited context of rights and responsibilities and contractual matters defined in the Electricity Market Act. The mandate does not extend to matters related to the regulatory tasks of the National Regulatory Authority (the Energy Authority). The dispute resolution principles of the Electricity Market Disputed Board follow those of the Consumer Disputes Board. The Board exists to fulfil the EU Electricity Market Directive’s requirements for alternative dispute resolution.

Ministry of Economic Affairs and Employment

The Ministry of Economic Affairs and Employment is the ministry responsible for the energy domain in Finland. The role of the ministry is to coordinate energy policies in Finland and to represent Finland in EU policymaking forums. The Ministry also coordinates competition and consumer matters in Finland.

Finnish Energy (special interest group)

Finnish Energy is a special interest group representing a wide range of companies in the energy sector in Finland, including energy producers, distributors, retailers, and service providers.

Iceland

Roles and responsibilities of the different actors

National Energy Authority of Iceland (NEA) / Orkustofnun (OS)

The National Energy Authority (NEA, Orkustofnun or OS in Icelandic) is a government agency that operates under the authority of the Ministry of Environment, Energy and Climate. The NEA plays a pivotal role in shaping and governing the retail electricity market within the country. It is also responsible for operating for the benefit of society in alignment with Iceland’s energy policy. The role of the NEA is to create a transparent environment for energy matters, to promote innovation and informed discussions, and to provide expert advice to the authorities for the well-being of the general public.
The NEA exercises oversight over crucial aspects of the retail electricity market, including pricing mechanisms such as revenue caps and tariffs. Like the other Nordic countries, Iceland separates the transmission and distribution of energy from the sale of electricity. Transmission and distribution of energy is a natural monopoly and sits under monopoly regulation, which includes determining a revenue cap for the TSO and DSOs. This is described in articles 12 and 17 of the Electricity Act. This oversight helps maintain affordability and accessibility of electricity while ensuring its quality and security of supply to consumers.
The NEA is responsible for issuing licences to the electricity retailers, which are required to engage in electricity trading. The NEA also has another important role in the electricity market as the consulting agency for customer complaints. Under Articles 22–26 and 30 of the Electricity Act, in the case of a complaint regarding any publicly managed aspect (e.g., tariff prices for the grid connection), the NEA is the responding authority. Anyone who believes electricity suppliers are violating their rights with their decisions, projects, or omissions can consult the NEA.
The National Energy Regulatory Authority is an independent unit within the NEA and is responsible for monitoring the electricity market in accordance with the provisions of the Electricity Act no. 65/2003. With the introduction of the third Electricity Packet (2009/72/EC) into Icelandic law, this mandatory and independent regulatory body for the electricity market was strengthened. The scope of monitoring applies to all companies operating under the Electricity Act. The National Energy Regulatory Authority also monitors electricity security.
As a regulator, the National Energy Regulatory Authority has several objectives: to promote competition in the production and trading of electricity; to support efficiency and economy in the transmission and distribution of electricity; to ensure adequate electricity security, consumer interests, and consumer awareness in the electricity market; to promote the use of renewable energy sources; and to make sure that environmental standards are being met.
Orkusetur runs a price comparison tool for electricity consumers. Orkusetur was established by the NEA in collaboration with the Ministry of Industry and Trade and is overseen by the NEA. The project is funded by the EU and Samorka. All nine of the Icelandic suppliers report to the Icelandic price comparison tool. The website covers all contracts that are offered to household customers in Iceland. It compares both electricity prices and distribution and transmission costs.

The Consumer Agency / Neytendastofa

The Consumer Agency is one of the governmental agencies in Iceland that serves to ensure the enforcement of legislation laid down by Parliament to protect the safety of consumers as well as consumers’ legal protection in various transactions with business operators. This includes focusing on consumer interests in the retail electricity market. The Consumer Agency receives notifications concerning potential breaches of application of Icelandic legislation on general safety issues, the legal rights of consumers, and the protection provided by law that measurements and measuring instruments are correct in relation to transactions with consumers.
The Consumer Agency is empowered by law to use various sanctions and enforcement measures if necessary; this includes sales bans, recalls, fines, and other measures as laid down in the legislation. The agency enforces a number of legislative acts, including the surveillance of unfair business practices and market transparency (Act No. 57/2005), door-to-door sales, and distance contracts (Act No. 46/2000).
The Consumer Agency provides the public (consumers as well as business operators) with relevant and up-to-date information concerning legal rights and obligations in transactions with consumers, including issues concerning the security of measurements and products.

The Icelandic Competition Authority / Samkeppniseftirlitið

The Icelandic Competition Authority (Samkeppniseftirlitið) was founded on 1st July 2005, when the Competition Act No. 44/2005 entered into force. By the same Act, the former Icelandic Competition Authority (Samkeppnisstofnun) and Competition Council (Samkeppnisráð) were discontinued.
The objective of the Competition Act is to promote effective competition in economic activities and thereby increase the efficiency of the productive factors of society. The Competition Authority is responsible for achieving the objectives of the Competition Act by opposing unreasonable barriers and restrictions on freedom in economic activities, as well as harmful oligopolies and restriction of competition, and by facilitating the entry of new competitors into the market. This includes the retail electricity market.
The role of the Competition Authority includes the following:
  • To enforce the requirements and prohibitions of the Competition Act and, as applicable, Articles 53 and 54 of the EEA Agreement, and to permit exceptions pursuant to the Competition Act
  • To decide on measures to be taken against anti-competitive behaviour in undertakings
  • To observe that measures taken by public entities do not restrict competition, and to indicate to the relevant authorities any means by which competition can be made more effective and the entry of new competitors into the market facilitated
  • To monitor the development of competition and trade practices in individual market sectors in Iceland, and to investigate the management and ownership relations between undertakings.
The supervisory work of the Competition Authority extends to all forms of business activities, regardless of whether such activities are conducted by individuals, companies, public entities, or other parties.

Neytendasamtök Íslands (NS)

The Consumers Association of Iceland is a membership-based association with the main objective of safeguarding the rights of consumers in Iceland. It is mainly funded by membership fees from their members based in Iceland. The NS offers its members free legal guidance and assistance if needed regarding disputes with traders based in Iceland.
During its opening hours on Thursdays, the NS is open to calls from all consumers and provides general legal guidance and information free of charge. However, the NS only reviews documents, offers mediation, or considers cases more closely if the consumer is a member.

Samorka

Samorka is the association of the Icelandic electricity, district heating, waterworks, and sewage utilities. The federation was founded in 1995, when the Federation of Icelandic Electric-Works and the Federation of Icelandic District Heating and Waterworks merged. All district heating services and electric works in the country are members of this federation, in addition to most of the waterworks and sewage utilities. Samorka operates in the four fields mentioned above. It is also a member of Nordenergi, the collaboration between the Nordic associations for electricity producers, suppliers, and distributors.
Samorka’s purposes and tasks include forwarding the mutual interests of its members, guarding their interests in mutual projects, fostering research and gathering information for its members as well as for public authorities, hosting seminars and conferences, and acting on behalf of members in mutual projects.

Landsnet

Landsnet is the Icelandic TSO, which owns and operates all electricity transmission lines in Iceland. A large part of Landsnet’s business involves the operation and maintenance of the electricity transmission lines and substations it owns. As the TSO, it also has system-wide responsibility for the entire Icelandic electricity system. This includes being responsible for the operational security of the electricity transmission system as a whole and its management, balancing electricity supply and demand, maintaining the grid’s capacities on a long-term basis, shaping and constructing the future grid, ensuring equal access to the grid, and promoting an active electricity market. Landsnet is subject to regulation by the NEA. The NEA determines the revenue cap on which Landsnet’s tariff is based. As a natural monopoly, Landsnet’s operations are regulated by the NEA, which sets an annual limit (revenue cap) for Landsnet’s maximum revenues. The purpose of the revenue cap is to promote efficiency in the operation of Landsnet and to ensure a reasonable return on investment.
Electricity transmission is a concession operation and, according to the Electricity Act, one company shall handle the transmission of electricity and system management. This company is Landsnet hf., which was established by the Act on the Establishment of Landsnet hf., No. 75/2004, although the company formally began operations on 1st January 2005. The electricity transmission system is now entirely in the hands of the DSO Landsnet hf. Landsnet’s owners are Landsvirkjun, RARIK, Orkuveita Reykjavikur, and Orkubu Vestfjarda.

Landsvirkjun

Landsvirkjun is the National Power Company of Iceland and operates 18 power stations in Iceland, concentrated into five main areas of operation. It is the largest electricity producer in Iceland and generates about 71% of the country’s power. It operates 15 hydropower stations, three geothermal power stations, and two wind turbines for research purposes in the five operating areas in Iceland.
Landsvirkjun is a jointly owned enterprise of the State Treasury, the City of Reykjavík, and the Township of Akureyri. Its objectives are according to Article 2 of Act No 42/1983.

Organization of the retail market and the role of power suppliers

Most power companies are under public ownership, the main exception to this being HS Orka, which generates about 7% of the total power generation in Iceland. The state-owned Landsvirkjun National Power Company generates 71% of the country’s power. The TSO (Landsnet) and the six DSOs are all publicly owned, with HS Veitur the only one partly owned (minority) by private parties.
Under Icelandic law, a single power company can function as generator, distributor, and supplier. However, accounting separation is required between concession (transfer of electricity in a certain area) and competitive activities. While consumers must use the distributor holding the concession for their respective area, the distributor need not be the same company as the supplier. Like in the other Nordic countries, the distribution of electricity is a natural monopoly and is regulated by the NRA, while the supply of electricity is subject to competition.
Unlike most countries in Europe, Iceland does not have a formal wholesale market for electricity. As a result, wholesale transactions take place by agreement between the buyer and the seller and not through a central market. Buyers on the wholesale market are electricity sellers that then resell to their customers, who are end-users or other electricity sellers. Sellers on the wholesale market are usually producers of electricity, but electricity sellers can also resell the electricity they have purchased to other electricity sellers.
The retail market in Iceland is a free market, and anyone can start a company and become an electricity seller if the conditions are met and they receive a licence to sell electricity. Electricity retailers are not required to have their own production, so companies in the retail market either produce electricity or not. Nine companies currently have a licence to sell electricity in the retail market in Iceland: Atlantsorka, N1 Rafmagn, Straumlind, Orka heimilanna, Orkubú Vestfjarða, Orkusalan, Orka náttúrunnar, Hs Orka, and Fallorka.
Users in the retail market are all households and companies that are not large users (i.e., with usage under 80 GWh of electricity per year). All users are free to choose their electricity supplier, and all changes to electricity suppliers must be free of charge for the user. However, it should be kept in mind that the user does not have a choice of distribution provider; rather, it depends on the location, if their operation is licenced.

Relevant regulations

The Electricity Act

The Electricity Act in Iceland plays a fundamental role in shaping the retail electricity market. This legislation provides the framework for the entire electricity sector, governing aspects such as generation, transmission, distribution, and retail. It establishes clear rules and responsibilities for market participants, including power suppliers, grid operators, and generators.
A primary focus of the Electricity Act is to foster competition within the market. It sets out mechanisms to prevent monopolistic practices, thus promoting a competitive environment that benefits consumers with greater choices and potentially lower prices. Additionally, the Act ensures equitable access to the transmission and distribution grids, preventing discrimination and fostering a level playing field for all market participants.
Consumer protection is another key aspect of the Act. It defines rules related to billing transparency, contract termination, and dispute resolution, empowering consumers by providing them with clear information about their electricity contracts and avenues for addressing grievances. The Act states that the final customer can complain to the National Energy Authority of Iceland. Furthermore, the Act takes into account environmental considerations by encouraging the integration of renewable energy sources, thereby aligning with Iceland’s commitment to sustainable energy production. Overall, the Electricity Act is instrumental in shaping a transparent, competitive, and reliable retail electricity market in Iceland.

Act on the Consumer Agency and Consumer Spokesman with later amendments (Act No 62/2005)

The Act on the Consumer Agency and Consumer Spokesman, designated as Act No. 62/2005 in Iceland, establishes the framework for consumer protection and advocacy in the country. This legislation serves to create and define the roles and responsibilities of the Consumer Agency and the Consumer Spokesman. Subsequent amendments have since been introduced to reinforce consumer rights and bolster consumer protection measures.
The primary goals of this Act include the establishment of the Consumer Agency, which acts as the central authority responsible for upholding consumer rights in Iceland. This agency is empowered to enforce consumer protection laws, to offer guidance and information to consumers, and to mediate in cases of disputes between consumers and businesses.
In addition, the Act designates a Consumer Spokesman, who operates independently and advocates on behalf of consumers. The Consumer Spokesman’s role encompasses representing the interests of consumers, raising awareness about consumer rights, and engaging in legal proceedings when necessary to protect consumers’ interests.
The Act also places significant emphasis on consumer education and information dissemination, with the Consumer Agency responsible for providing consumers with knowledge about their rights and responsibilities in commercial transactions. This includes the distribution of information related to product safety, contract terms, and procedures for resolving disputes.
Furthermore, the Act grants the Consumer Agency the authority to monitor and enforce compliance with consumer protection laws. It enables investigations and legal actions against businesses found to be engaging in unfair or deceptive practices, thus ensuring that consumers are treated fairly in the marketplace.
Importantly, the Act establishes mechanisms for resolving disputes between consumers and businesses, encouraging mediation and negotiation to reach mutually acceptable resolutions. When agreements cannot be reached through these means, the Consumer Agency can facilitate legal action on behalf of consumers.
Over time, amendments to the Act have been made to enhance consumer protection in response to changing consumer behaviour, technological advancements, and evolving market practices. Overall, the Act on the Consumer Agency and Consumer Spokesman, together with its amendments, serves as a vital instrument for promoting consumer rights, ensuring transparency in commercial transactions, and providing effective avenues for dispute resolution in Iceland’s marketplace.
Article 4 of the Act states that the Minister will appoint an Appeals Committee for Consumer Affairs and its responsibilities. This includes being referred to decisions by the authorities that are made in accordance with the Act on the Surveillance of Unfair Commercial Practices and Market Transparency.
In accordance with the Act on the National Energy Authority, no. 87/2003, as well as the Electricity Act, the NEA works on electricity issues under the supervision of the Minister of the Environment, Energy and Climate. The NEA shall monitor that companies operating in accordance with the Electricity Act meet the conditions that apply to the operations. Furthermore, the NEA sets revenue limits for the TSO and distribution utilities to achieve efficiency in their operations. The Electricity Act also mandates the Competition Authority’s supervision of the economic activities covered by the Electricity Act. The Electricity Act also stipulates that the NEA grants licences for electricity production (Chapter II), licences for the operation of the TSO (Landsnet; Article 8), licences for the construction of transmission infrastructure (Articles 9 and 11), licences to construct and operate a distribution network (Article 13), and licences to conduct electricity trade (Article 18).

Norway

Role and responsibilities of the different actors 

RME (Regulatory Authority)

The Regulatory Authority for Energy (RME), part of the Norwegian Water Resources and Energy Directorate (NVE), is responsible for regulating Norway’s power market and grid system. The RME ensures a user-friendly and efficient retail market, occasionally imposing fines for breaches, although this is infrequent for electricity retailers. The RME can also revoke electricity suppliers’ trading licences. Additionally, the RME can take administrative measures like giving advance notice of decisions and providing guidance to market actors. The RME’s responsibilities also include overseeing and enforcing compliance with various relevant regulations and laws in the retail market.
The RME’s responsibilities are outlined in the Energy Act and related regulations, as well as the Third Electricity Directive and associated regulations.
 The regulations that are relevant in this context are as follows:
  • The Energy Act (Energiloven)
  • The Regulation on Measurement, Settlement, Billing of Grid Services, and Electrical Energy, Net Company Neutrality (Regulation on settlements, or Avregningsforskriften)
  • The Regulation on Reporting Obligations for Electricity Supply Agreements (Forskrift om rapporteringsplikt for kraftleveringsavtaler).
The RME also enforces the Regulation on Grid Regulation and the Energy Market. The EU’s Fourth Energy Market Package has been adopted in the EU and is currently under consideration in Norway (as of May 2023). The RME also manages the electricity support scheme (strømstøtten) that was introduced in 2021 in response to the energy crisis. In recent times, the RME has played a role in introducing changes to the Price Information Regulation (Prisopplysningsforskriften) and the Regulation on Electricity Sales and Network Services (forskrift om kraftomsetning og nettjenester), including improvements in providing information on invoices to consumers. The RME has also collaborated with the Consumer Authority (Forbrukertilsynet) to enhance its oversight of electricity suppliers.

The Consumer Authority (Forbrukertilsynet)

The Consumer Authority (CA) is a supervisory authority that works to make markets simpler and safer for consumers. The CA is responsible for monitoring the business practices and contract terms of traders. Its primary focus is on preventing and stopping illegal marketing, unfair contract terms, and other forms of unlawful trading practices directed towards consumers. The CA plays a crucial role in ensuring that businesses operate ethically and transparently in their dealings with consumers.
The CA supervises the following areas that are of particular relevance to the electricity retail market:
  • The Marketing Act (Markedsføringsloven)
  • The Price Information Regulation (Prisopplysningsforskriften)
  • The Regulation on Unfair Trading Practices (Forskrift om urimelig handelspraksis)
  • The Right of Withdrawal Act (Angrerettloven).
Supervision of the electricity retail market is a high-priority area for the CA, and the authority conducts oversight to ensure that correct and comprehensive information is provided in the marketing of retail electricity contracts, and that the contract terms used by electricity retailers are fair and balanced. In some cases, the CA initiates a dialogue with electricity suppliers, leading them to adjust their practices, but it also has the authority to impose fines on electricity retailers that, for instance, violate the Marketing Act or the Consumer Rights Act. Decisions made by CA can be appealed to the Market Council.
The CA regularly performs supervisions among the electricity retailers. In 2023, it has prioritized supervision related to the marketing and contract terms within the electricity market.
 The CA has taken various actions to increase awareness of the current regulations among electricity suppliers. In 2022, it sent three letters to all electricity suppliers, providing information about different aspects of the regulations. This included information about consumer withdrawal rights when entering into fixed-price electricity agreements, as well as guidance on the use of climate and environmental claims in electricity marketing, including the rules governing claims of “renewable” and “green” electricity. The CA has also informed the electricity suppliers of the requirements for providing information about withdrawal rights during the contract signing process.

Fornybar Norge

Fornybar Norge is a nationwide interest and employer organization that represents Norway’s entire renewable energy sector. Its goal is to promote sustainable energy solutions that reduce greenhouse gas emissions and generate new jobs and income in Norway. Its membership includes all aspects of the renewable energy supply chain, from energy production on land and at sea to grid companies, contractors, electricity suppliers, suppliers, and consultants. Fornybar Norge was formed by merging Energi Norge and Norwea in January 2023.
The standard electricity supply agreement (standard kraftleveringsavtale) was jointly developed by the former consumer authority and Energi Norge (now Fornybar Norge) and was last updated in 2017. This standard agreement provides a summary of the rights that consumers and businesses have under current legislation and practices.
Since 2018, Forbrukertilsynet no longer participates as a party in industry standards and standard agreements. Instead, it issues guidelines that clarify and interpret existing regulations. Consequently, the standard kraftleveringsavtale has not been updated to reflect the changes in legislation made in recent years.

Forbrukerrådet

Forbrukerrådet (the Consumer Council) is a government-funded independent organization that advocates for consumer interests and influences businesses and government authorities to be more consumer-friendly. It runs “strømpris.no”, a retail electricity price portal. Electricity retailers must report information according to the Regulation on Reporting Obligations for Electricity Supply Agreements. Although the RME officially oversees this, providers typically report directly to Forbrukerrådet through strømpris.no or make the data accessible on their websites.
According to the Regulation, all active electricity supply agreements should be published on strømpris.no, with links on provider websites. A consistent task for Forbrukerrådet is removing agreements that do not match the reported terms. On the portal, agreements are sorted into categories such as Spot Price, Fixed Price, and Other Agreements, ranked by expected monthly cost. Agreements with a guaranteed price duration of six months or longer are ranked higher than shorter-duration or non-guaranteed agreements. Giving weight to this duration was a change implemented by Forbrukerrådet after receiving many enquiries from consumers who had ordered electricity supply agreements through the portal and experienced price increases shortly thereafter. Duration of agreements is not something that electricity retailers are obligated to report, but Forbrukerrådet has actively contacted them and encouraged the sharing of this information. Besides strømpris.no, other private electricity comparison portals exist; some use the same data source, while others gather information from provider websites or directly from providers.

Konkurransetilsynet

The Competition Authority enforces the Competition Act and works to promote competition for the benefit of consumers and businesses, with the aim of contributing to efficient resource utilization. The Competition Act outlines three main areas that the Competition Authority focuses on: illegal cooperation (§ 10), abuse of dominant position (§ 11), and merger control (§ 16). In its daily operations, the Competition Authority has limited involvement in the retail electricity market. However, it is involved in mergers and acquisitions among electricity retailers.

Elklagenemnda

Elklagenemnda was established through an agreement between Fornybar Norge and the Consumer Council (Forbrukerrådet). Its main purpose is to offer consumers a fair, reasonable, and efficient process for resolving disputes related to energy companies. Elklagenemnda handles complaints arising from contractual relationships between energy companies and consumers.
In cases involving electricity retailers, the board primarily relies on the contractual framework, including the Standard Electricity Supply Agreement and the Consumer Rights Act, to make its decisions. While there may be some overlap between the cases handled by Elklagenemnda and those handled by the Consumer Authority, the Consumer Authority generally addresses the broader marketing practices of electricity retailers, whereas Elklagenemnda specifically resolves disputes between consumers and electricity retailers.
Elklagenemnda functions as an advisory body that addresses individual disputes, and its decisions do not necessarily set precedents for other cases. Companies that receive unfavourable decisions from Elklagenemnda typically comply with the decisions. However, other companies with similar practices may not change their practices until they also face a complaint.
The topics covered in the cases handled by Elklagenemnda vary. Examples of recurring themes in these cases include vaguely formulated special conditions (such as non-specific claims that the electricity agreement is among the 10 cheapest), electricity agreements, and other issues related to electricity supply.

Relevant regulations

Energy Act (Energiloven)

The purpose of the Energy Act is to ensure that the production, transformation, transmission, trading, distribution, and use of energy occur in a rational manner.
Chapter 4 of the Energy Act concerns the trading of electrical energy. It specifies the need for a trading licence from the RME to engage in the trading of electrical energy and outlines the conditions that must be met to obtain such a licence. The requirements for obtaining a trading licence are not complex and do not pose a significant barrier to entry as an electricity supplier in Norway.
The Energy Act also imposes requirements for the structural and functional separation of vertically integrated entities that have been assigned system responsibility or that have more than 100,000 network customers. The requirement for structural separation means that the network business must be separated from businesses engaged in the production or trading of electrical energy, and these entities must be organized as independent legal entities. The requirement for functional separation means that individuals in the management of the network business cannot participate in the management of businesses engaged in competitive activities within the vertically integrated entity. In practice, there should be a clear separation between the grid operator and the electricity supplier.

Regulations on settlements (Avregningsforskriften)

The Regulation on settlements aims, among other things, to ensure that electricity suppliers are granted access to the transmission network and to facilitate the ability of customers in the retail market to switch electricity suppliers. Customers in the retail market are guaranteed electricity supply even without an electricity supply agreement through the distribution companies’ obligation to supply electricity. This regulation is enforced by the RME.
In accordance with § 2-2, customers in the retail market have the right to switch electricity suppliers. When switching electricity suppliers, a written electricity supply agreement between the electricity supplier and the customer must be in place.
Requirements for information in the electricity supply agreement are outlined in § 2-3 of the Regulation. Here, it is specified that an electricity supply agreement must, at a minimum, contain information about the metering point ID, the customer’s personal identification number or organizational number, the customer’s name or company name, the product covered by the agreement, and the customer’s consent.
Chapter 7 includes provisions regarding the billing of consumers. According to Section 7-1(b), an electricity supplier can invoice the consumer both in advance and in arrears. In cases of pre-billing (payment in advance), the period between the invoice due date and the delivery date must not exceed 10 weeks.
Section 7-2 of the regulation specifies several requirements for invoice design. First, the invoice must be clear and easily understandable to the consumer. It should include information about the basis for the invoice, including separate line items for all price components, electricity volume, and whether the consumer receives mandatory electricity delivery. Furthermore, if estimated values are used as the basis for billing, this must be clearly stated on the invoice. The invoice should also include the electricity spot market area of the consumer’s measuring point.
Additionally, the invoice should inform the consumer about the ability to compare electricity supply agreements on strømpris.no. It should contain the name of the electricity supply agreement, the agreement’s duration, and the notification procedures in the event of changes to the agreement. If the agreement includes a price guarantee, the duration of the price guarantee should be prominently displayed on the invoice. The invoice should also provide information about the consumer’s right to raise objections to the invoice, including the consumer’s opportunity to contact the Electricity Complaints Board (Elklagenemnda). It should also include the contact information for the Electricity Complaints Board.
In Chapter 7 of the Regulation, terms are also established regarding having only one bill (i.e., the grid fees from the grid company are included on the invoice from the electricity supplier) as a voluntary arrangement. The voluntary nature of this arrangement means that grid companies can choose to offer electricity suppliers the option to invoice grid fees, but if they do so, it must be extended to all interested electricity suppliers. An electricity supplier can choose to have one invoice, but if they do, they must implement this for all customers in the grid company’s area.

Regulation on Reporting Obligations for Electricity Supply Agreements

The purpose of this Regulation is to contribute to providing clear and comprehensive information about prices and terms in electricity supply agreements for consumers and to ensure that such information is publicly accessible. The RME also enforces this regulation.
In accordance with Section 4 of the Regulation, information about any electricity supply agreement offered to or entered into with consumers is subject to reporting obligations. Section 5 of the Regulation establishes requirements for the content, format, and deadlines for reporting. The reporting should include the price per kWh, including any surcharges, as well as any fixed amounts associated with the agreement. Furthermore, the reporting should specify which customer groups the agreement is offered to and include all relevant agreement terms, such as additional terms or limitations in the electricity supply agreement. The agreement should be uniquely identifiable. The documentation of information should be submitted electronically and continuously to the Consumer Council’s electricity price portal to ensure that the information is always up-to-date.

Marketing Control Act (Markedsføringsloven)

The Marketing Control Act pertains to “control over marketing, commercial practices, and terms of agreement in consumer relationships and sets requirements for good business conduct among businesses”. According to the Act, the CA is responsible for monitoring businesses’ commercial practices and terms of agreement, and it is the most important law that the CA enforces. Accordingly, the CA has the authority to impose financial sanctions on actors that violate it.
Of particular relevance to the assessments in this report is Chapter 2 of the Marketing Act, which addresses commercial practices. Specifically, §§ 6 to 9 prohibit unfair commercial practices, including deceptive actions, misleading omissions, and aggressive commercial practices. In addition, § 10 contains requirements related to price labelling and information obligations, providing the legal basis for the Price Information Regulation.
Chapter 3 addresses specific forms of marketing. Under § 11, the business must obtain the consumer’s explicit consent for any payment beyond the consideration of the main service before entering into an agreement. Under § 12(1), telephone marketing directed at consumers who have opted out of such marketing is prohibited. In § 13, there is a similar prohibition on marketing through addressed mail. Additionally, telephone marketing at certain times and using a concealed number is generally prohibited, as stated in § 14; § 15 restricts the use of marketing via email or automated calling systems. In § 18, requirements are set for the clarity and accessibility of terms if businesses offer consumers additional benefits such as discounts, gifts, or similar offers.
Chapter 5 of the Act pertains to terms of agreements. For example, § 22 prohibits contract terms that are found to be unreasonable towards consumers, with the prohibition being guided by public interest considerations. This does not apply to the content of pricing terms.
The authority and enforcement powers of the CA are described in Chapter 7. In particular, § 35 and § 36 address the duties, proceedings, and decision-making powers that are relevant when assessing the consequences of measures.
Chapter 9 of the Marketing Act also provides for the possibility of criminal and civil penalties.

Price Information Regulation (“Prisopplysningsforskriften”)

The Price Information Regulation is authorized by the Marketing Control Act § 10, with the purpose of promoting clear pricing information to enhance competition among businesses while making it easier for consumers to compare prices. The CA (Forbrukertilsynet) oversees that this regulation is followed.
Chapter 6 (§§ 19–22) covers the transportation and sale of electric power. This chapter has recently been revised; starting from 1st November 2022, the obligation to provide information to customers has been strengthened through clearer requirements for marketing information, a requirement for price lists, and heightened requirements for notification in the case of changes or termination of power agreements. The CA further states on its website that the purpose of these changes is to facilitate a more functional and consumer-friendly electricity market.
Under § 20, the essential information required in commercial communication that constitutes a call to purchase are listed as follows:
  • Whether the agreement is for spot-price, fixed-price, standard variable-price, or other types of contracts
  • All mandatory price components and their amounts
  • The duration of the agreement and the price components
  • Any contract duration and potential termination fees
  • The period, if any, for which advance payments are required
  • Any conditions to qualify for the agreement
  • A statement that any additional services offered are not mandatory
  • A notice that the agreement can be compared with other agreements on the Consumer Council’s electricity price portal.
§ 21 establishes requirements for electricity suppliers to have an up-to-date price list readily available at the location or in the channels where consumers can enter into electricity agreements. This price list should provide a comprehensive overview of prices and terms for all of the electricity supplier’s various electricity agreements, including agreements that are no longer offered but still have active customer relationships. Furthermore, the price list for each individual electricity agreement per price area should specify the agreement’s name, type, and price, along with a link to the agreement terms.
§ 22 sets out requirements for notifying consumers about changes to or termination of their electricity agreement. The supplier must inform the consumer of all changes to or termination of the electricity agreement, including changes in the price agreed upon at the time of the contract (except for changes in the spot price). The notification should clearly explain the reason for the change in the agreement or the termination of the agreement, and whether the consumer has the right to terminate the agreement at no cost.
According to § 22, notifications about changes to or termination of the electricity agreement should be formulated in such a way that makes the content and changes clear and understandable to the consumer. This means that the price and terms before and after the change should be clearly presented. Furthermore, the notification should be provided separately and should not be mixed with other information from the supplier. The notification should be sent to the consumer via SMS and email, or by mail if the consumer has not consented to digital communication methods.

Regulation on Unfair Commercial Practices (Forskrift om urimelig handelspraksis)

The Regulation on Unfair Commercial Practices lists various forms of deceptive and aggressive commercial practices that are considered unfair under all circumstances. The Consumer Authority (Forbrukertilsynet) and the Market Council (Markedsrådet) oversee and make decisions under the Marketing Control Act for actions outlined in this regulation.

Cancellation Act (Angrerettsloven)

The Consumer Rights Act, overseen by the CA, provides consumers with various rights and information requirements when it comes to sales outside of a fixed retail location, such as online purchases, telephone sales, sales at stands, or door-to-door sales. The law also regulates consumers’ right to cancel or withdraw from these purchases. For the electricity retail market, the following parts of the Consumer Rights Act are particularly relevant:
Chapter 1 § 3 states that the law cannot be waived by agreement to the disadvantage of a consumer, and § 7 states that it is the responsibility of the business to prove that the information requirements in §§ 8 to 16 and § 18 have been met.
According to Chapter 2 Section 8, the business is obligated to provide the consumer with various information before entering into an agreement. These information requirements include details about the goods or services, such as main characteristics, total price, any additional charges,
If the price cannot reasonably be pre-calculated, the method for calculating the price should be provided, along with any additional costs (or an acknowledgment that they may occur). For subscription agreements, the total price should encompass the costs per billing period, or the method for calculating them if the total costs cannot be pre-calculated.
 the agreement’s duration and minimum contract period, and the conditions for terminating the agreement.
Furthermore, Chapter 3 Section 10 states that for agreements marketed through unsolicited sales over the phone, an agreement is not considered to be entered into until the business has confirmed the offer in writing on a lasting platform after the telephone call has ended, and the consumer has accepted the offer in writing. Typically, this is done by SMS.
Chapter 5 Section 15 states that when an agreement is made through a means of remote communication with limited space or time to display information, there are specific requirements pertaining to the minimum information to be provided in § 8. Furthermore, Section 18 states that within a reasonable time after the agreement is concluded, and no later than before the delivery of the service begins, the consumer should receive written confirmation of the agreement on a lasting platform. This confirmation should include the information outlined in § 8 if it has not been previously provided to the consumer on a durable medium.
Chapter 6 describes the right to regret the purchase. More specifically, Sections 20 and 21 state that the consumer has a 14-day period to regret the purchase; if the consumer is not informed of this, the period extends to 12 months. According to Sections 19 and 26, the supplier can only demand payment for services delivered before the period allowed to regret the purchase has expired if the consumer has accepted this.

Competition Act (Konkurranseloven)

The purpose of the Competition Act is to promote efficient resource utilization by fostering competition for the benefit of consumers and businesses. Key provisions of the Act include Section 10, which prohibits anti-competitive agreements, Section 11, which prohibits abuse of a dominant position, and Section 16, which is concerned with merger control. Additionally, Section 14 allows for measures to be taken in cases where neither Section 10 nor Section 11 can be applied, but there is still a need for general market regulation. This may be the case in markets where anti-competitive practices have developed without violating the prohibitions in Sections 10 and 11, or where it is difficult to prove a violation of these prohibitions.

Price Control Act (Pristiltaksloven)

The Price Control Act, Section 1 (Lovdata, 1993), grants the Norwegian Competition Authority (Konkurransetilsynet) the authority to regulate prices when necessary to promote socially responsible price developments. Decisions can be made regarding maximum prices, minimum prices, price freezes, price calculations, discounts, maximum advances, delivery and payment terms, and other provisions related to prices, profits, and business conditions. The Price Control Act also prohibits unreasonable prices and business conditions, as outlined in Section 2 of the regulation.
The Competition Authority has emphasized on several occasions its reluctance to use the powers granted by the Price Control Act, as it considers free competition to be in the best interest of society and consumers. However, it has clarified that if it is necessary to prevent a crisis from being exploited by certain parties to demand unreasonable prices for essential goods and services, it will use the powers provided by the law (Konkurransetilsynet, 2020).
Changes to the Regulation on Determining Coercive Fines and Penalty Fees (Endringer i forskrift om utmåling av tvangsmulkt og overtredelsesgebyr)
The Ministry of Children and Families has enacted a new regulation regarding the determination of penalty payments and penalty fees for violations of the Marketing Control Act, the Consumer Right of Withdrawal Act, the Package Travel Act, and the Transparency Act, which came into effect on 14th February 2023.
The regulation specifies the maximum size of penalty fees, which is set at up to 4% of the business’s annual revenue or up to 25 million Norwegian kroner. Key considerations in determining penalty fees include the nature, severity, scope, and duration of the violation, the possibility of preventing the violation through guidelines, instructions, training, or control, any financial gains resulting from the violation, past violations, and the financial capacity of the business. This means that future decisions may issue significantly larger penalty fees than previously, especially for entities with high turnovers and/or involved in serious violations.

Suggestions to improve the electricity retail market from the Ministry of Children and Families

The Ministry of Children and Families (BFD) has suggested several changes to the national rules aimed at promoting a more consumer-friendly retail electricity market, as listed below:
A. Prohibitions/mandates related to certain types of electricity contract offerings for consumers. Prohibitions could apply, for example, to standard variable contracts. Mandates could include requirements for electricity retailers to offer a clearly defined standard spot-price contract with a regulated maximum markup or fixed-price contract.
B. Requirements for the content of electricity contracts targeting consumers, such as maximum contract duration, requirements for price stability, or prohibitions on price changes for a certain period after contract signing, maximum size of termination fees, and prohibitions or restrictions on the ability to demand advance billing in the regulation on electricity sales and network services.
C. A maximum markup that an electricity provider can charge in contracts offered to consumers.
D. Requirements or restrictions related to marketing, including the obligation to disclose any consumer-related risks associated with contracts other than spot-price contracts.
E. A prohibition or restrictions on the sale of products other than electricity along with an electricity contract, such as bundled sales or gifts. This could include discounts on products when selling electricity contracts in stores, discounts on streaming services with the simultaneous signing of an electricity contract, and the sale of insurance contracts linked to the electricity contract.
F. A prohibition or restrictions on the ability to sell electricity contracts through telemarketing, door-to-door sales, or stand sales.
G. A prohibition on win-back marketing aimed at household customers when switching electricity retailers.

Sweden

Roles and responsibilities of the different actors

Electricity retail market structure

In 1996, electricity trading in Sweden was deregulated and exposed to competition, and customers could decide who they wanted to purchase electricity from. That said, there is a regulated monopoly for electricity distribution via the electricity grid.
Energimarknadsinspektionen, 2023, Sweden’s electricity and natural gas market, 2022
 The transmission grids have since been developed and extended to neighbouring countries and other EU countries, which has enabled increased distribution and trade of electricity across borders. Transmission of electricity is still a regulated market, where the Swedish TSO Svenska kraftnät (Svk) is responsible for the operation and development of the transmission grids in Sweden.
Energimarknadsinspektionen, 2021, The electricity market
In addition, the Swedish electricity market is characterized by bidding zones for electricity. Sweden has, since 2011, been one of only a few EU countries with bidding zones for electricity, corresponding to defined geographical areas of Sweden. There are currently four different bidding zones: SE1, SE2, SE3, and SE4. The zone division was based on existing differences and limitations in transmission capacity in the transmission grid at the time of the division, although there is currently an ongoing process with bidding zone reviews according to the EU Electricity Market Regulation, where Svk is responsible for suggesting and investigating potential new bidding zones in Sweden. Svk’s proposal on whether to keep the existing bidding zones or amend to new divisions is expected to be presented in February 2024. If new bidding zones are decided upon, they can be introduced in 2027 at the earliest.
Energimarknadsinspektionen, 2023, Sweden’s electricity and natural gas market, 2022
The Swedish electricity market is integrated with the Nordic market. Moreover, there are several submarkets for electricity trading, including price hedging markets, a day-ahead market, an intraday market, and a balancing market.
Energimarknadsinspektionen, 2023, Sweden’s electricity and natural gas market, 2022

Role of power suppliers

Svk is the only TSO in Sweden, and as mentioned above, it is responsible for the operation and development of the transmission grid in Sweden and for ensuring a constant balance between electricity consumption and production. According to the Electricity Market Directive, TSOs must be certified. Svk was certified by Ei in 2012 as system operator for the electricity transmission grid in Sweden and is certified until further notice. However, Ei has the right to review the certification if Svk fails to meet set requirements for system operators.
Energimarknadsinspektionen, 2023, Sweden’s electricity and natural gas market, 2022
Moreover, there are around 170 DSOs in Sweden,
Energimarknadsinspektionen, 2021, The electricity market
 responsible for the operation, maintenance, and development of the regional and local distribution grids within certain areas. Each electricity grid company has a monopoly for a certain area and thus exclusive rights to distribute electricity within that area. The monopoly is decided by Ei through a permitting process. Ei also ensures that grid companies do not exploit their monopoly position through a revenue framework and revenue caps. Grid operations in Sweden are not allowed to operate within the same legal entity that is engaged in trading or production of electricity to avoid cross-subsidization due to the monopoly of grid companies.
Energimarknadsinspektionen, 2023, Sweden’s electricity and natural gas market, 2022
Lastly, there are electricity supply companies who buy electricity and sell to customers, although the physical delivery of the electricity is the responsibility of the TSO and DSOs. There are around 150 electricity suppliers in Sweden, with a mix of local companies that only offer contracts in certain areas or bidding zones and larger companies with customers across the entire country. The three largest electricity suppliers had, at the end of 2022, a combined market share of around 51%. Electricity supply companies are free to decide which types of contracts they want to deliver to customers, as there are currently no regulations on requirements of certain contracts that must be provided.
Energimarknadsinspektionen, 2023, Sweden’s electricity and natural gas market, 2022

Swedish Energy Markets Inspectorate (Energimarknadsinspektionen, Ei)

The Swedish Energy Markets Inspectorate (Energimarknadsinspektionen, Ei) is the regulatory authority in Sweden that supervises the electricity, district heating, and natural gas markets. This includes ensuring that actors in these markets follow and comply with both the EU’s regulatory frameworks and national legislation, as well as monitoring the development of the markets. Additionally, Ei is responsible for suggesting changes and developing regulations or other measures to promote a well-functioning energy market based on identified issues. This mainly concerns the Swedish market; however, Ei is also involved in the EU regulatory framework development as representatives of Sweden.
Ei receives reports from consumers of companies failing to comply with the provisions of the Electricity Act, the Natural Gas Act, the District Heating Act, the Act on Certain Pipelines, or the Act on the Certification of National Grid Undertakings for Electricity and Certification of Certain Natural Gas Undertakings. As the supervising authority, Ei then examines whether the companies have breached any obligations. Ei also regulates terms and conditions for monopoly companies operating within the electricity networks and natural gas networks and supervises their compliance with these regulations and obligations. Additionally, Ei offers elpriskollen.se, a website for comparing the electricity contracts – in terms of prices, contract types, and conditions – offered by all active electricity suppliers.

Swedish Consumer Agency (Konsumentverket)

The Swedish Consumer Agency (Konsumentverket) is a government agency responsible for consumer legislation and monitoring of consumer affairs. The electricity market is one of 45 different markets that the Consumer Agency monitors. Examples of activities performed by the Consumer Agency are ensuring that companies comply with the law, handling consumer complaints, ensuring the safety of products and services, and overseeing market develop­ment to identify consumer problems. Marketing rules, sales, and contract terms in the electricity market are monitored by the Consumer Agency, and information and identified issues related to the electricity market are regularly discussed with Ei.

Swedish Consumer Energy Markets Bureau (Konsumenternas energimarknadsbyrå)

The Swedish Consumer Energy Markets Bureau (Konsumenternas energimarknadsbyrå) is an independent bureau that offers free advice and guidance to consumers on the Swedish energy markets. The bureau is funded by the Swedish Consumer Agency, the Swedish Energy Agency, the Energy Markets Inspectorate (Ei) and the two industry organizations Swedenergy and the Swedish Gas Association. Relevant complaints are forwarded to the bureau both from Ei and the Consumer Agency, especially regarding disputes and contractual rights. Through the bureau, consumers can obtain advice and information regarding electricity, natural gas, or district heating in the fields of pre-purchase information, energy suppliers, energy prices, legal guidance in the case of consumers having a dispute with an energy company, and information regarding change of energy supplier.
The bureau also presents statistics of reported consumer problems and complaints, as well as an updated list of electricity retailers with a record of receiving many complaints during the last 12 months to help consumers avoid unfair electricity suppliers. As per the update in October 2023, three companies are currently on the list, out of around 150 companies in total.

National Board for Consumer Disputes (Allmänna Reklamationsnämnden, ARN)

The National Board for Consumer Disputes (Allmänna Reklamationsnämnden, ARN) is a public authority with the main task of impartially resolving disputes between business operators and consumers. Claims are filed by the consumer; in order for them to be handled by ARN, the business operator must first have rejected the complaint partly, in whole, or not responded at all. Recommendations of how disputes should be resolved are presented by the ARN; even though they are not obligatory or binding, a majority of companies adhere to these recommendations.
Regarding the electricity market, disputes that cannot be settled by Ei or the Consumer Agency fall within the ARN’s area of responsibility. These disputes can, for example, be between grid companies and consumers over compensation after power outages, or between consumers and suppliers about incorrect billing.

Swedish Competition Authority (Konkurrensverket)

The Swedish Competition Authority (Konkurrensverket) is responsible for monitoring the markets to promote competition in both private and public activities that is efficient and beneficial to consumers. Moreover, it promotes effective public procurement to the benefit of society and market participants. Efficient competition in the market is regarded as having diversity both among the available contract types and the number of independent electricity suppliers.

Relevant regulations

General consumer acts that apply to the electricity market include the Marketing Control Act, the Price Information Act, and the Act on Contractual Terms in Consumer Relations. Other rules that apply include the Statute of Limitations and the Act on Distance Contracts and Off-Premises Contracts. Additionally, there are general consumer purchases and services acts regarding private persons’ purchases of products or services from commercial companies.
Other legislations, regulations, and rules specifically designed for the electricity market include the Electricity Act, the General Terms and Conditions, the Electricity Preparedness Act, the Electricity Safety Act, and the Regulation on Measurement, Calculation, and Reporting of Transmitted Electricity.
As a member country of the EU, Sweden also follows and implements EU legislations for the electricity market.

Consumer Purchases Act (2022:260)

This Act governs purchases of products from companies. Rules are provided for customers rights during problems with the purchase, for example, when there is a problem with the delivery of the products. It is applicable when a private person purchases goods from a commercial enterprise.

Consumer Services Act (1985:716)

This Act governs services provided to customers by a commercial provider, and it is mandatory to the benefit of the customers. For example, it states which terms and conditions must be met, and customers cannot receive terms less favourable than these.

Act on Distance Contracts and Off-Premises Contracts (2005:59)

This Act applies when something is purchased on the internet. For example, it states the right of withdrawal within 14 days of the purchase, which also applies to purchases made by telephone.

Marketing Act (2008:486)

The Marketing Act is the general act that governs how companies are allowed to market themselves. The Act offers customer protection against deceptive, aggressive, and other unauthorized marketing. It is applicable both when companies target their marketing towards other companies or towards customers, and for marketing of products, such as goods, services, and job opportunities.

The Price Information Act (2004:347)

Customer protection and rights include being entitled to accurate and clear price information of what a purchased service or good costs.

Act on Contractual Terms in Consumer Relations (1994:1512)

The Act on Contractual Terms in Consumer Relations states what applies when companies make an agreement with a customer, including the terms and conditions in a purchase agreement, rental contracts, or guarantees. The Act applies to all standard terms used by companies when offering products or services to customers. If the customer has had the opportunity to affect the terms and the customer and company decide on the contract terms by themselves, they are no longer regarded as standard terms and the Act is not applicable.

Statute of Limitations (1981:130)

The Act on Statute of Limitations states provisions on when and for how long a company has the right to demand payment after a purchase of a good or service. Usually, the company has a right to demand payment up to three years after the purchase; however, there are occasions when the statute of limitations or limitation period is extended, and the company can enforce debt for a longer time.

Competition Act (2008:579)

The Competition Act contains two main prohibitions, one for anticompetitive cooperations between companies and the other for companies with a dominant position to exploit their market power. The first prohibition applies when companies cooperate to hinder, limit, or distort the competition, and it applies to both horizontal and vertical cooperation. The second prohibition applies if a company exploits their dominant market position. Several aspects are considered when deciding if a company can be regarded as having a dominant market position, one of which is if their market share is above 40%. Having a dominant market position is not prohibited, but the exploitation of this position is prohibited. Moreover, the Act also contains rules on the acquisition of companies and anticompetitive activities of public sales. The rules apply to the government, municipalities, and regions in terms of how they are allowed to act when conducting public sales.
In Sweden, companies must also comply with the EU’s competition rules on the prohibition of anticompetitive contracts and exploitation of a dominant market position. The EU’s competition rules apply if anticompetitive actions affect the market between Sweden and another country member of the EU in a considerable way.

Electricity Act (1997:857)

The fundamental provisions of the electricity market are stated in the Electricity Act (Ellagen) of 1997. The Act is based on the old Electricity Act from 1902. Since then, technical and structural changes have developed the electricity supply both in Sweden and abroad, creating issues of application, which led to the new Electricity Act emerging. The new Act regulates establishments regarding the production, transmission, and consumption of electricity.
The new Act bases its material content on the old provisions for electricity grid concession, electricity grid operations and grid tariffs, protective measures and damages, and electricity safety measures and supervision. However, the regulations for the electricity market were complemented with provisions on customer protection. Several changes have also been made since the emergence of the new Act to increase customer protection and strengthen the position of the individual consumer in the market. For example, the Act provides specific rules stating that a change of electricity supplier should not impose a specific charge on the customer.
Additionally, the Act states provisions on information of price and terms. The electricity supplier is obligated to inform their customers about the content of an agreement before it is entered and to inform the customer of when the contract period expires, as well as what happens with price and delivery terms if the customer does not enter a new agreement before the contract period expires. Before contract terms are changed, the customer must be informed through a special message, which should convey that the customer has the right to cancel the contract. The new terms are allowed to be applied two months after the delivery of this message as the earliest.

Assigned Price (Anvisat pris, §§ 3–10 in the Electricity Act)

If the customer has not entered a new electricity contract when the previous contract ends or when moving, the customer’s electricity network company will assign the customer to an electricity supplier and enter them into what is called “assigned price”. The assigned price is usually higher than other price alternatives and can change during the year; however, these changes occur more slowly than the non-assigned monthly flexible price alternatives.
On 1st June 2023, new regulations were introduced to the Electricity Act, stating provisions on how assigned contracts are not allowed to be hourly price contracts or dynamic prices. Dynamic prices refer to prices that reflect the price on the spot market at every hour, with an interval that at least corresponds to the frequency for settlement on the market. Moreover, an assigned contract is not allowed to have a notice period longer than 14 days.

Regulation on Measurement, Calculation, and Reporting of Transmitted Electricity (1999:716)

The Regulation on Measurement, Calculation, and Reporting of Transmitted Electricity includes provisions on how measurements of electricity should be taken. For example, it states that an electricity meter should be able to measure and register the total active energy for withdrawal and input of electricity. The regulation is based on provisions in the sixth chapter of the Electricity Act, which gives the government the right to issue regulations regarding matters and questions within the electricity measurement area.
The Regulation has recently been updated, and the new directives came into effect on 1st November 2023. The update states that measurements should be on a 15-minute settlement level instead of a 60-minute level. This applies for all input connection points (production), although the settlement will still occur on a daily level with the new 15-minute temporal resolution. A period of transition allows for input connection points where measurements cannot be measured on a 15-minute level to measure on an hourly level until 31st December 2024. The update does not involve regulations for the net metering. However, the new requirements for 15-minute resolution at the input connection points means that the output at those connection points will also be measured with a 15-minute resolution. This allows for accurate tracking of the amount of electricity being produced and consumed, which is necessary for determining the credit or payment that the owner of the renewable energy system is entitled to receive. The imbalance price will still be the same for the whole hour, so there will be no economic effect, and settlement does not have to be on a 15-minute level even if the measurement is.

General Terms and Conditions (Allmänna avtalsvillkor)

The trade association Energiföretagen, which also represents many utilities (producers, suppliers, and grid companies) in Sweden, and the Consumer Agency have agreed on general terms and conditions that should be included in electricity contracts for consumers to receive reasonable and fair contracts. Most electricity suppliers apply these terms and conditions, and the most important provisions include EL 2012 K (rev 2) for electricity trading and NÄT 2012 K (rev 2) for electricity grids.
The terms and conditions include rules and provisions for electricity network connection, electricity meter reading, compensation for power outages, payment obligations and prohibited additional charges, due dates and deadlines, right of withdrawal, requirements for security or advance payment, breach of contract, and disconnection as well as guidance and dispute resolution. Some provisions only apply to electricity networks, while others only apply to electricity trading. However, most provisions can be found in the contract terms for both grid companies and electricity suppliers.
Special rules in the provisions include, for example, the point from which the withdrawal period is counted, that reading of the electricity meter should be done every month and billing should be done every quarter, how preliminary billing and final billing should be done, and the consumer’s additional payment obligation when they in good faith pay an invoice that may reasonable be perceived as final for a certain period.

Electricity Emergency Preparedness Act (1997:288)

The Electricity Emergency Preparedness Act (Elberedskapslagen) regulates the utility companies’ obligations to take actions and measures for ensuring society’s needs of electricity supply during difficult times of severe stress and heightened readiness. The obligations apply to companies that are engaged in the production, transmission, and trading of electricity.

EU legislation

Other relevant regulations that state provisions for the Swedish electricity market and actors are the relevant EU directives and regulations. The EU Commission has developed a common framework to ensure their implementation in electricity markets. The framework decides the rules for the electricity market and its different actors. Svk, the Swedish TSO, works to implement the EU legislation that aims to create a well-functioning inside market for electricity. The various directives and regulations include the Electricity Market Directive, Electricity Market Regulation, Emergency Preparedness Regulation, Transparency Regulation, and REMIT.
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