Danish energy suppliers banned from acquiring new customers over delayed refunds

Two Danish electricity suppliers have been barred from signing up new customers for three months after failing to pay refunds to former clients on time, DR reports.

The Danish Utility Regulator (Forsyningstilsynet) imposed the ban on Velkommen and Nettopower following repeated complaints from customers who struggled to receive outstanding credit balances after switching providers. The regulator had already ordered the companies last week to immediately settle all pending refunds.

An inspection by the regulator revealed widespread delays: Velkommen failed to pay 3,192 of 3,470 cases on time, while Nettopower delayed 2,969 of 3,003 refunds. Many customers were still awaiting payments at the time of the review.

“This is an unusually high number of violations in an area where the rules are relatively straightforward,” said Carsten Smidt, director of the Danish Utility Regulator, in a statement on April 14. “That’s why we’re now taking firm action to ensure these companies immediately pay what they owe to former customers.”

Under Danish regulations, electricity customers must receive a final settlement—including any credit balance—no later than four weeks after switching suppliers. The regulator plans a follow-up inspection to verify compliance.

The three-month ban prevents both companies from acquiring new customers during the period.