The Consumer Disputes Board has been busy resolving cases involving consumers who have entered into fixed-term electricity contracts at exorbitant prices. In recent months, the board has mediated several such cases and found that the prices of some electricity companies’ fixed-term contracts were unreasonable.
The board has issued solutions to address the price mediation of fixed-term electricity contracts entered into by consumers in the fall of 2022. The board estimates that there are tens of thousands of similar situations and recently thousands of people received payment default notices for unpaid electricity bills.
Last summer, the board set out limits on 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 25-30 cents per kilowatt-hour for electricity, resulting in annual bills totaling thousands of euros. The board emphasized that consumers had paid much more for their electricity than others with similar contracts and 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, the decision may impact all temporary fixed-price electricity contracts from the fall of 2022.
In conclusion, it is essential for energy companies to ensure that their fixed-term contracts are reasonable and not exploitative towards consumers. Consumers have a right to fair pricing and should not be burdened with excessive costs for their electricity needs.
The Consumer Disputes Board’s efforts to mediate cases involving high-priced fixed-term electricity contracts are commendable, as they seek to protect vulnerable consumers from being taken advantage of by energy companies. As such, it is crucial that energy companies adhere to ethical practices when setting prices for their products and services.
In summary, while many consumers have faced financial difficulties due to high-priced fixed-term electricity contracts, there are steps being taken by regulatory bodies like the Consumer Disputes Board to address these issues and ensure fairness for all parties involved.
