Electricity Price Scandal: Consumer Disputes Board Calls for Fair Pricing in Fixed-Term Contracts

In recent months, the Consumer Disputes Board has mediated several cases where consumers have been charged high prices for fixed-term electricity contracts. The board has criticized the unreasonable pricing of some electricity companies’ fixed-term contracts and called on consumers to seek help if they feel they have been overcharged.

The Consumer Disputes Board has issued guidance on price mediation for fixed-term electricity contracts that were entered into in the fall of 2022. The board estimates that there are tens of thousands of similar situations and recently thousands of people have received payment default notices for unpaid electricity bills.

Last summer, the Consumer Disputes Board outlined the limits of 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 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, the decision may impact all temporary fixed-price electricity contracts from the fall of 2022.