Source: Energy & Management Powernews, 07 January 2022
According to the Federal Ministry for Consumer Protection, customers whose current electricity contract has been terminated do not have to accept price increases. They should even claim damages.
A spokesman for the Federal Ministry for the Environment and Consumer Protection said in Berlin: "The supplier who gives notice commits a breach of contract from our point of view." The occasion was the case of the energy supplier Stromio, as well as a number of other apparently illegal cases in which electricity and gas customers suddenly had their prices increased or current contracts terminated. The ministry referred from documents, which are present to the consumer centers, according to which supply stops took place outside of the contractual conditions.
The consumer centers were credibly documented cases, in which the notice by the energy supplier is ineffective, because it simply does not correspond to the agreed upon AGB in the contracts, said the ministry speaker opposite our editorship. Therefore, he said, this type of termination constitutes a breach of contract. In view of sharply increased market prices, 38 electricity suppliers alone have now gone bankrupt, according to the Federal Network Agency. Others tried to pass on the high costs to the customers within the contract terms.
Substitute supply secured, but usually more expensive
Only from the termination by Stromio probably several hundred thousand electricity customers are affected. With such an insolvency of the offerer or contract notice enters automatically the basic supplier in the region into the spare supply. However, this supplier often charges higher rates than the previous supplier. According to the Ministry of Consumer Protection, customers would have a right to "pay the same price for electricity as previously agreed." Therefore, the terminating provider would be obliged to pay compensation for price increases.
The consumer centers advise terminating without notice in the event of price increases for electricity or gas and switching to another provider. In the event of termination by the supplier or in the event of insolvency, customers should also look for a new supplier. This is usually cheaper than the tariff of the local basic supplier. If a termination of the supply contract is legally inadmissible, the consumer centers also recommend claiming damages and switching suppliers. The height of the payment of damages depends on the additional costs by the new tariff.
First judgement successfully for consumers
The consumer center North Rhine-Westphalia had forbidden at the beginning of of December by the regional court Cologne the Leverkusen energy supplier Rheinische electricity and gas supply company ltd (REG) by provisional order unfair business practices with reference to the mark "evergreen". The latter had attempted to increase monthly installment payments solely with reference to increased procurement costs, without first duly increasing prices. "Fortunately, the court has also left no doubt about the inadmissibility of these business practices and prohibited them," commented Wolfgang Schuldzinski, Chairman of the Consumer Center NRW.
Politics must also protect citizens
The Federation of German Consumer Organizations (VZBV) at the same time demanded that the German government take action against impending energy poverty due to price increases. For this purpose, it proposes to suspend electricity and gas blocks for private households with low incomes until 30.04.2022.
In addition, the calculation of housing benefit, unemployment benefit and basic old-age security must be aligned with the real costs of those affected. A consumer-friendly electricity price reform should reduce costs and the further conversion of the energy supply to renewable sources should reduce dependence on imported fossil fuels, said the VZBV.
measures to take in the event of cancellations or price increases are available on the website of the consumer protection agency.
Author: Susanne Harmsen