Electricity contract and difficult life situations: death of a loved one, divorce, and payment difficulties
Anyone can unexpectedly find themselves in a difficult life situation. A sudden change in circumstances often means dealing with additional matters. If the situation is related to your or a loved one’s housing, make sure to update the electricity contract accordingly.
Guidance for difficult
life situations
In a difficult life situation, such as the grief from the death of a loved one, the emotional turmoil caused by a divorce, or struggling with payment difficulties, managing matters can feel especially overwhelming. We have gathered a few guidelines that we hope will help if an electricity or district heating contract becomes a concern in such situations.
Death of a loved one and the electricity contract
Sometimes, you may need to take care of practical matters during a time of grief. Here’s how to handle your electricity contract after the death of a loved one.
After the death of a loved one, it’s important to determine who will take care of their affairs. The situation regarding the electricity contract can vary:
1. The widow/widower stays in the shared home. The electricity contract is in the name of the deceased spouse.
- The existing electricity contract will be terminated.
- A new electricity contract will be made in the name of the widow/widower.
2. The deceased person’s home remains uninhabited.
- The heirs appoint someone, either from among themselves or an external person, to handle the death estate’s affairs. This includes the electricity contract.
- In this case, a power of attorney made between the heirs must be submitted to the electricity company.
Feel free to contact us regarding any electricity contract or
estate-related matters.
Also, check the frequently asked questions below on this page for more details.
Why is this important?
If no one has been authorized to manage the death estate’s affairs, any actions related to the electricity contract will require written approval from all the heirs. Below, you can find a template for a power of attorney to manage energy-related matters.
Related power of attorney documents
Separation or divorce and electricity contract
When moving to separate addresses, it’s important to check the status of the electricity contract. Start by finding out who the contract is in the name of. This information can be found on the most recent electricity bill. The contract may also be joint, meaning both parties’ names are listed.
1. One party stays in the shared apartment while the other moves out. The electricity contract is in both names or in the name of the person moving out.
- The contract is terminated, and a new electricity contract is made for the person remaining in the apartment in their own name.
2. Both parties move out of the shared apartment.
- The contract is terminated by the person whose name is on the contract.
Why is this important?
The names on the electricity contract determine who is responsible for paying the electricity bills.
If the electricity bill remains unpaid for a long period and is sent to collections, the wrong person may end up being responsible for the payments.
District heating contract and new owner
A district heating contract differs from an electricity contract in that it is tied to the ownership of the property. Therefore, it usually remains unchanged unless the property owner changes.
The district heating contract must be transferred to the new owner’s name in cases such as:
- The property is transferred to a new owner in inheritance or divorce proceedings.
- The estate sells the property.
- In a separation situation, one party sells their share to the person staying in the property.
If the property remains under the ownership of the estate, no changes are required to the contract. However, please remember to notify us that the district heating account has been transferred to the estate.
Why is this important?
The contract does not automatically transfer with the property transfer. Please read the detailed instructions for transferring the district heating contract to a new owner.
Also, read about the transfer of electricity connections on Vaasan Sähköverkko’s website.
Payment difficulties and electricity contract
If your financial situation becomes unstable for any reason, you might find yourself in a position where paying bills becomes difficult.
1. If you’re having trouble paying your latest bill
- Contact us as soon as possible! If necessary, we can grant you additional time to pay.
- Remember to request an extension of the due date before the bill becomes overdue.
2. If the bill has already been sent to collections
- Contact the collection agency directly to resolve the issue.
Why is this important?
If you’re struggling with payment difficulties and reach out to us in time, we can help you find a solution that works for your situation.
You can also avoid unnecessary reminder fees when the issue is addressed in advance. Always feel free to share your situation with us in confidence.
Frequently asked questions about the electricity contract of a death estate
What happens to the electricity contract when the person who signed it passes away?
The electricity contract does not automatically change.
When the relatives begin managing the deceased person’s practical matters, they should inform the electricity supplier without delay.
If another person, such as a widow, stays in the deceased person’s home, a new contract will be made in the name of the person remaining in the home, and the old electricity contract will end automatically.
If the property or apartment remains jointly owned by the estate, the electricity contract can remain in the name of the estate or be transferred to the names of the estate’s heirs. In both cases, all the heirs are jointly responsible for paying the electricity bills.
Why should the electricity supplier be notified of a relative’s death?
As an electricity supplier, we do not receive information about a customer’s death unless someone informs us. It is important to notify the supplier of the death so that the electricity contract can be changed to an estate’s contract.
Each heir of the estate has the option to extend the payment due date for a maximum of three months while waiting for the probate. By providing an official certificate or genealogical records, the electricity company can get information about the heirs even before the probate, making the process easier.
This also helps avoid unnecessary additional costs caused by unpaid bills.
What should be done with the electricity contract of an estate?
- Notify the electricity supplier of your relative’s death when you are able, after handling your mourning.
- If the intention is to cancel the electricity contract, you will need a power of attorney signed by all the heirs of the estate.
- Terminate the estate’s electricity contract no later than after the probate. If necessary, a new contract can be made in the name of the surviving spouse or all the heirs of the estate.
How long can the electricity contract remain in the name of the estate?
The electricity contract can remain in the name of the estate as long as the property or residential unit to which the contract was made remains under the control of the undivided estate.
After the probate, the electricity contract should be transferred to another person’s name, at which point the old contract will automatically end. If the electricity contract is not transferred to another person’s name after the probate, please contact our customer service to terminate the contract.
Can the electricity contract for the estate be terminated?
If the deceased person’s residential unit is left vacant and is intended to be sold, the electricity contract can be terminated immediately if it is no longer needed. In this case, even a fixed-term electricity contract can be canceled.
However, there should always be a valid electricity contract for the property. The electricity contract can be made in the name of the estate or the estate’s heirs.
Remember that when the electricity contract is terminated, the electricity will be completely cut off from the property until a new contract is made. Consider this decision carefully, as the property may be without electricity. For example, in winter, it is important to consider the risk of pipes freezing, and it may be necessary to maintain at least basic heating until a new electricity contract is in place.
If the property is going to be used for either permanent residence or, for example, as a summer home, the electricity contract can remain in the name of the estate or a new contract can be made in the name of the estate’s heirs or a tenant.
Terminating the electricity contract for the estate requires the consent of all the estate’s heirs.
Who can handle the electricity contract matters for an estate?
The estate can authorize one of its heirs to handle the electricity contract matters. Alternatively, an external estate administrator can also manage these tasks.
The key requirement is that the person handling the matters must have a power of attorney signed by all the heirs of the estate, granting them the authority to manage the contract and make decisions related to the electricity agreement.
It is recommended to decide as soon as possible after a loved one’s passing who will be authorized to take care of the estate’s affairs.
You can create a power of attorney electronically or print a template for the document from here.
Can an estate get an extension on an electricity bill?
Yes, it can. Each heir of the estate has the possibility to extend the bill’s due date by up to three months while waiting for the estate inventory. The electricity company can obtain information about the estate’s heirs from a certificate of inheritance or family history document, which simplifies managing the matters.
To handle billing matters for the estate, you need to provide us with a power of attorney and a copy of the family history document or certificate of inheritance. With the power of attorney or certificate, the person authorized by the estate can easily manage the estate’s billing matters, avoiding any additional costs for unpaid bills.
For any questions related to paying the estate’s bills, please contact our payment services.