Recently, the Consumer Disputes Board has been involved in several cases where consumers have signed fixed-term electricity contracts at exorbitant prices. The board has highlighted that some of the fixed-term contract prices charged by electricity companies are unreasonable.
In response to these issues, the Consumer Disputes Board has issued guidelines on price mediation for fixed-term electricity contracts that were entered into during fall 2022. The board estimates that there are tens of thousands of similar situations, and many people have received payment default notices due to unpaid electricity bills.
Last summer, the Consumer Disputes Board outlined the limits of what is considered reasonable in electricity contracts. The board stated that a fixed-price contract could be considered unreasonable if it was 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 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 attempts 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, it may impact all temporary fixed-price electricity contracts from fall 2022.
