The Consumer Disputes Board has been actively mediating cases involving consumers who have signed fixed-term electricity contracts at exorbitant prices in recent months. The board has raised concerns about the unreasonable pricing of some electricity companies’ fixed-term contracts.
In response to these issues, the Consumer Disputes Board has issued recommendations on price mediation for fixed-term electricity contracts entered into in the fall of 2022. The board estimates that there are thousands of similar situations, and many people have received payment default notices for unpaid electricity bills.
Last summer, the Consumer Disputes Board set out guidelines for determining the limits of unreasonableness in electricity contracts, especially when prices had dropped significantly from the end of 2022. The board stated that fixed-price contracts could be considered unreasonable if they were more than 15 percent higher and more than 150 euros above the average price of similar contracts.
In cases resolved by the board, consumers were paying an average of 25-30 cents per kilowatt-hour for electricity, resulting in annual bills totaling thousands of euros. The board emphasized that consumers have paid much more for their electricity than others with similar contracts and have demanded fair prices or contract terminations.
Despite efforts at mediation, consumers with expensive contracts still face higher prices compared to others. The board has urged consumers in resolved cases to contact the consumer ombudsman to potentially resolve the matter in court. If the case reaches the Supreme Court, the decision may impact all temporary fixed-price electricity contracts from the fall of 2022.
