In recent months, the Consumer Disputes Board has resolved several cases where consumers have entered into fixed-term electricity contracts at very high prices. According to the board, these prices have been unreasonable in some cases. The Consumer Disputes Board has issued solutions regarding the price mediation of fixed-term electricity contracts, stating that consumers have been overcharged for their electricity. The board estimates that there are tens of thousands of these situations, with thousands of people receiving payment default notices for unpaid electricity bills.
The Consumer Disputes Board has outlined the limits of unreasonableness in electricity contracts, stating that the fixed price of the contract can be considered unreasonable if it is more than 15% higher and more than 150 euros higher than the average price of similar contracts during the contract period. Cases resolved by the board have shown that consumers have paid significantly higher prices for their electricity compared to similar contracts offered later during the validity of the contracts.
However, despite mediation efforts by the board, consumers who signed expensive contracts continue to pay high prices even after mediation attempts. The board emphasizes that electricity sellers should have better opportunities to assess future developments in electricity prices and adjust their contract terms accordingly. Despite unexpected price developments due to external factors such as Russia’s war with Ukraine, sellers should be able to accurately predict future energy costs and adjust their pricing accordingly.
Consumers who are dissatisfied with their resolution may contact the consumer ombudsman for further resolution. The ombudsman may potentially lead to a Supreme Court decision that may apply to all fixed-price electricity contracts signed in fall 2022. This decision could set a precedent for future contract disputes and protect consumers from being overcharged for their electricity needs.
Overall, it is important for both consumers and sellers to be aware of fair pricing practices when entering into fixed-term energy contracts. By setting clear guidelines and expectations upfront, both parties can avoid disputes down the line and ensure a fair deal for everyone involved.
