Danish Power Firms Accused of Withholding Refunds

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Opuere Odu

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Danish Power Firms Accused of Withholding Refunds

The number of customer complaints against Danish electricity providers is rising sharply. The same few companies, Velkommen and Nettopower, dominate the list of disputes, with hundreds of unresolved cases about missing refunds.

Complaints Double in a Year

The Danish Energy Complaints Board has seen a dramatic surge in cases involving electricity companies. In 2025, the board received 556 complaints, nearly twice as many as the year before. Of these, 241 were directed at Velkommen and its subsidiary Nettopower. Most claims involve customers who are still waiting for money owed to them.

One customer discovered he had more than 50,000 kroner sitting unused with Velkommen, the result of overly high estimated bills. Customers across Denmark report similar experiences, saying that their advance payments bear no relation to their actual electricity use.

Thousands Still Waiting for Refunds

Many households have been waiting months for refunds, despite numerous follow-ups with customer service. Some only received their money after contacting media outlets or threatening to go to the police. Consumer advocacy organization Forbrugerrådet Tænk has criticized these companies for failing to transfer refunds automatically, as required by law.

According to company co-owner Lars Hein, the delays are due to system errors. He insists that affected customers will receive their refunds soon. However, several consumer advocates disagree, claiming the energy companies are making the process unnecessarily difficult.

Criticism from Consumer Advocates

Consumer rights firm Forbrugerkrav, which assists people in disputes with energy companies, reports many ongoing cases involving Velkommen. The firm’s leadership calls the refund issue widespread and systematic rather than isolated. In their experience, some company procedures appear designed to delay payouts instead of resolving them quickly.

This issue is not new for the Danish electricity sector. While a few providers dominate the market, smaller companies have struggled with administrative challenges and customer dissatisfaction. The situation highlights ongoing weaknesses in the industry’s consumer protection practices, as seen in several other recent cases involving energy providers facing legal action over similar issues.

Customer Discovers Overpayment by Chance

In one notable case, a customer discovered his massive credit balance purely by coincidence while checking his account online. When he asked Velkommen to transfer the money immediately, he was told he would have to wait until March because his request was made after the monthly cutoff date.

He later explained that he had trusted the company’s billing accuracy and had no reason to think overcharging was possible. His experience has since encouraged him to monitor his invoices more closely.

Financial records reviewed by Danish media confirm that he had paid between 1,000 and 6,000 kroner a month, depending on the season. In several months, the company charged up to four times the expected amount.

The Company Responds

Velkommen purchased Nettopower four years ago, and the two now share management and offices. In 2024, they had a total of 42 closed cases before the Energy Complaints Board. By 2025, the figure had more than quintupled.

Velkommen has also faced legal rulings for charging customers withdrawal fees under variable energy contracts, something the courts found unlawful. While the company denies any intentional wrongdoing, it has admitted to technical and administrative bottlenecks during its rapid growth.

Co-owner Lars Hein says the firm takes the matter very seriously. He argues that the problem is tied to estimated billing, where advance invoices are based on historical usage data. According to him, while the system is not perfect, there is no deliberate intent to overcharge customers.

Recent Developments

Following media attention, Velkommen began issuing refunds to several affected customers, including the man who uncovered the 50,000-kroner overpayment. Despite progress, consumer organizations warn that better oversight and stricter regulations are needed to prevent similar issues across the Danish energy market.

Given the mounting number of complaints, Danish authorities may soon take a closer look at company practices in the electricity sector. The growing pattern of disputes suggests not just technical errors but a broader structural problem in how customer payments and credits are managed.

Sources and References

The Danish Dream: Danish Energy Provider Faces Lawsuit from District Heating Customers
The Danish Dream: Energy Electricity in Denmark for Foreigners
TV2: Sagsbunken vokser hos ankenævn – samme elselskaber går igen i klagerne

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