Unreasonable Electricity Contracts: When Fixed-Term Contracts Aren’t Fair, What Can Consumers Do?

In recent months, the Consumer Disputes Board has mediated several cases where consumers have signed 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 entered into contracts at high prices. 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. Despite this, consumers who have made expensive contracts continue to pay high prices even after mediation.

The Consumer Disputes Board emphasizes that electricity sellers have better opportunities to assess the development of electricity prices in advance, despite unexpected price developments due to external factors such as Russia’s war with Ukraine. However, this does not absolve them from responsibility for offering fair and reasonable pricing to their customers. Consumers of resolved cases are urged to 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.

It is important for consumers to be aware of their rights when it comes to signing energy contracts and understand what they are getting themselves into before signing on any dotted line. Additionally, it is crucial for companies providing energy services to ensure they are offering fair and reasonable pricing options so their customers do not end up paying more than they should.