Tibber, business | The company owned by Tibber is closed. All employees have been laid off

The Swedish newspaper was online break it Who reported this on Friday afternoon. It has only been a year since Tibber purchased Kundkraft from Schibsted. All eleven workers at Condcraft have been laid off.

The business model is dead

Tibber sells energy at a variable rate, and Kundkraft’s business model has been to obtain contracts for customers through auctions. Kundkraft has been around for 23 years, and had just over 124,000 customers when it was acquired in 2021. The company had sales of NOK 41.3 million annually, and profits of NOK 6.3 million.

Rising electricity prices mean Kundkraft has to shut down, but also new EU regulations which mean Kundkraft can no longer tie up a one-year variable electricity contract as before, but only three months. No Swedish electricity company will charge a flat fee anymore.

– We will offer everyone a good power agreement on good terms, so that customers can reduce their power costs. Now there is no longer a market in which electricity suppliers are willing to offer fixed-rate electricity contracts. That’s why we made this decision, says Philip Bertland, president of Tibber in Sweden in an email to Breakit.

Bought for 100 million NOK

According to Schibsted’s 2021 annual report, Kundkraft was worth $100 million when purchased, Breakit writes. Schibsted also acquired a five percent stake as part of the acquisition.

Kundkraft members are free to continue with Tibber or 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.