It was the Swedish online newspaper Break it who reported it on Friday afternoon. It has only been a year since Tibber bought Kundkraft from Schibsted. All eleven Kundkraft employees were fired.
The business model is dead
Tibber sells energy at a variable price, Kundkraft’s business model has been to secure contracts for customers through auctions. Kundkraft has been in existence for 23 years and had just over 124,000 customers when the acquisition was made in 2021. The company had a turnover of NOK 41.3 million per year and a profit of NOK 6.3 million.
It is both the high electricity prices that mean Kundkraft has to close, but also the new EU regulations that mean that Kundkraft can no longer bind the variable electricity contract for one year as before, but only for three months. No Swedish electricity company will charge more fixed prices.
– We will offer everyone a good power supply contract on favorable terms, so that customers can reduce their energy costs. There is now no longer a market where electricity suppliers wish to offer electricity contracts at a fixed price. That’s why we made this decision, says Filip Bertland, head of Tibber in Sweden in an email to Breakit.
Purchased for NOK 100 million
According to Schibsted’s 2021 annual report, Kundkraft was worth $ 100 million when they bought it, writes Breakit. Schibsted also received five percent of the shares as part of the acquisition.
Kundkraft members are free to continue with Tibber or to choose another energy supplier, and 11,000 members have contracts that expire in November. In Sweden, it costs 39 SEK per month to be a Tibber customer.
Firda will be back with more.
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