The Federal Association of Consumer Organizations (vzbv) is investigating price increase letters from energy providers

  • Some energy suppliers are apparently trying to circumvent agreed price guarantees and conceal drastic price increases in confusing letters. (vzbv analysis)
  • Reasons for price changes are often not presented in a sufficiently understandable way for consumers.
  • vzbv calls for uniform minimum standards for notifications of contract changes and price increases.

“For some of the energy providers examined, the question arises as to whether they take into account that their customers expect higher prices due to the energy crisis and therefore do not critically examine both the justification for the increase and the specific price increase. Especially when there are several price increases in a row at short notice, it is not always clear to consumers whether this is even justified. A consumer-friendly price information policy looks different.”

Sabine Lund, speaker in the vzbv energy market observation team

The study shows that price increase letters are often not recognizable as such at first glance. From the vzbv's perspective, the reasons for price increases cannot always be verified. Often only the new total price is stated. It usually remains unclear how current market events specifically influence the price.

vzbv calls for clear regulations for price increase letters

In a case presented to vzbv, the total costs rose by a total of 115 percent in several small steps within a few months. Lawmakers should urgently prevent such chain price increases, demands the vzbv. In addition, energy supply companies must adhere to the statutory deadlines for announcing price changes.

In addition, uniform minimum standards should be set for the design of contract change and price increase notifications, suggests the vzbv. Consumers must be able to recognize such letters at first glance and understand and check the scope and reasons for the intended changes.  

“Especially now in the energy price crisis, high priority should be given to protecting consumers from dubious energy suppliers. Legislators and supervisory authorities have an opportunity here to ensure transparency and clarity.”

Sabine Lund, speaker in the vzbv energy market observation team

vzbv files several injunctions

Based on the results of the investigation, the vzbv has initiated several cease-and-desist proceedings. In addition, the vzbv informed the Federal Network Agency about individual grievances and asked for regulatory intervention.

Methodological note : Over 180 price increase notifications from the period October 2021 to April 2022 were analyzed for the study. The letters from energy suppliers were recorded through a consumer appeal by the vzbv and by the consumer advice centers. The selected problem descriptions are exemplary for a large number of similar situations, so that the companies were not named. Further information on the methodological approach can be found here .

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Source: vzbv


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