Electricity Contracts Widely Overpriced, Consumer Disputes Board Launches Mediation Solutions

Recently, the Consumer Disputes Board has resolved several cases where consumers have entered into fixed-term electricity contracts at very high prices. The board has warned that some of the electricity company’s fixed-term contract prices were unreasonable and called for price mediation solutions.

The Consumer Disputes Board announced solutions to address price mediation issues related to fixed-term electricity contracts that consumers signed in the fall of 2022. The board estimates that thousands of similar situations exist, and thousands of people have received payment default notices for unpaid electricity bills.

Last summer, the Consumer Disputes Board set limits on unreasonableness in electricity contracts, specifically 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.