Collateral and its refund

Collateral for a new contract

Collateral is requested for a new contract if the customer has overdue invoices from one or more contracts, and the annual consumption estimate for the new metering point exceeds the limit set by Caruna. The customer is informed that the electricity transmission contract will begin conditionally on Caruna's side and will only take effect once the overdue receivables or the requested guarantee payment have been paid.

A conditionally starting contract means that if the collateral or overdue receivables have not been paid by the due date of the collateral payment, the contract will be terminated without separate notice, and electricity delivery to the metering point will be disconnected. The collateral payment can amount to no more than the size of the network service invoice for the period between the start of the billing cycle and the disconnection of electricity delivery.

Collateral requested due to breach of contract

The need for collateral is always reviewed when a customer wants electricity reconnected to a metering point after the contract between Caruna and the customer has been breached and electricity delivery to the metering point has been interrupted as a result. Collateral is requested if the annual consumption estimate for the metering point exceeds the limit set by Caruna.

Collateral refund

For individual customers, collateral is refunded:

• One year after its payment, provided the customer has not had significant payment defaults during the past year, meaning the invoice has not been sent to collections.
  • If the customer has significantly defaulted on payments during the collateral period, the refund of the collateral is postponed by one year, at which point a new review is conducted.
• Upon termination of the contract, where any outstanding receivables are deducted from collateral.

For business customers, collateral is refunded:

• Two years after its payment, provided the customer has not had significant payment defaults during the past year, meaning the invoice has not been sent to collections.
  • If the customer has significantly defaulted on payments during the collateral period, the refund of the collateral is postponed by two years, at which point a new review is conducted.
• Upon termination of the contract, where any outstanding receivables are deducted from collateral.