Energy company drops €800,000 legal fee demand against pensioner after contract dispute

Finnish energy provider KSS Energia has withdrawn its appeal demanding an elderly customer pay nearly €800,000 in legal costs, following a district court ruling in the company’s favour, Yle reports.

The dispute centred on pensioner Reijo Löppönen’s challenge over the fairness of a fixed-term electricity contract price. While Kymenlaakson District Court rejected Löppönen’s €600 compensation claim in March, it ruled that the legal ambiguity justified each party covering their own costs—despite the consumer’s loss.

KSS Energia initially appealed, seeking full reimbursement of its expenses, including a €670,000 bill from its law firm. However, CEO Marko Riipinen announced the withdrawal, stating the court’s dismissal of the consumer’s mediation claim justified closing the case. “We respect the court’s view and now focus on developing our operations in line with our strategy,” Riipinen said in a company statement.

Pensioner avoids “enormous cost risk”

Löppönen, who did not appeal the district court’s decision, would have faced liability for both courts’ legal fees had the case proceeded, said Jari Suurla, the lawyer representing him under the Consumer Ombudsman’s mandate. “Continuing would have risked saddling the Consumer Agency with massive costs,” Suurla noted, adding that the prolonged dispute had diminished its precedent-setting value.

Suurla emphasised the case primarily affected a limited group of consumers who signed expensive fixed-term contracts in late 2022. While Löppönen expressed surprise at the company’s U-turn, he stood by his decision to pursue the case publicly. “I don’t regret it. Maybe this will lead to better customer service from energy companies,” he said, suggesting the dispute had already damaged KSS Energia’s reputation.

KSS Energia announced in March 2025 that it would cease retail electricity sales to consumers and businesses.