In recent months, the Consumer Disputes Board has been dealing with a number of cases where consumers have signed fixed-term electricity contracts at exorbitant prices. According to the board, these prices were unreasonable in some instances. The board has issued guidelines regarding price mediation for fixed-term electricity contracts, stating that consumers had entered into contracts at high prices. The board estimates that there are tens of thousands of such situations, with thousands of people receiving payment default notices for unpaid electricity bills.
The Consumer Disputes Board has set limits on what can be considered unreasonable in electricity contracts. According to the board, the fixed price of a contract can be deemed 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.
Despite unexpected price developments due to external factors such as Russia’s war with Ukraine, electricity sellers have better opportunities to assess the development of electricity prices in advance. However, consumers who have made expensive contracts continue to pay high prices even after mediation. The board emphasizes that consumers of resolved cases should contact the consumer ombudsman for further resolution, potentially leading to a Supreme Court decision that may apply to all fixed-price electricity contracts signed in the fall of 2022.
The Consumer Disputes Board has outlined its position on unreasonableness in electricity contracts and has provided solutions for consumers who feel they have been overcharged. However, it is clear that more needs to be done to protect consumers from exploitative pricing practices by electricity sellers. As such, it is important for both consumers and sellers to understand their rights and responsibilities when entering into energy contracts.