Gas and electricity customers receive significant refunds due to illegal price hikes. Consumer advocates win a major settlement against energy companies.
Customers of energy providers Primastrom, Voxenergie, and Nowenergy have long been frustrated by arbitrary price hikes and unfair contract terms. The Federal Association of Consumer Organizations (vzbv) revealed that not only were price increases made without customer consent, but these providers also ignored timely cancellations and contract withdrawals. This left many customers bound to contracts with inflated prices, which prompted consumer advocates to step in.
Settlement results
The vzbv has now secured an out-of-court settlement with Primaholding, the parent company of the aforementioned providers. This agreement allows affected customers to exit their contracts immediately or earlier than initially planned. Retrospective lower tariffs are available for customers whose withdrawals were previously rejected. Moreover, customers can still withdraw from their contracts if they haven’t already, according to the vzbv’s press release.
A significant point of contention was the extended contract durations post-cancellation, with some providers delaying cancellations until 2027. Under the new agreement, customers can terminate their contracts no later than two years after the start date and benefit from lower prices post-cancellation. However, customers must actively demand these adjustments from their providers. The vzbv also advises that even those who cancel now can obtain better terms.
A third critical aspect of the agreement concerns pricing. Despite announced price reductions, the providers’ rates remained above market levels. The settlement now establishes price caps for electricity and gas billing, potentially lowering costs significantly in retrospect, according to the vzbv.
To benefit from this settlement, affected customers must take action. They need to email their provider, referencing the vzbv’s settlement with Primaholding, even if they have already submitted a cancellation or contract withdrawal. A template for this email is available here. The deadline is December 31, 2024.
Up to 80% refunds
The value of sending this email is demonstrated by a vzbv example: A Nowenergy customer was charged 46.73 cents per kWh for gas. After a rejected withdrawal, the contract was extended until August 2025. With the settlement, the contract now ends in October 2024, and the gas price drops to 8.5 cents per kWh and then to 11 cents per kWh. This saves the household 81%, or €5,250.
Incorrect billing?
If you are with a different energy provider and suspect incorrect billing or unmet contract terms, file a consumer complaint with your provider via post, fax, or email. Ensure the complaint is in writing and you receive a delivery or read confirmation. The Federal Network Agency recommends titling the document “Consumer complaint under § 111a EnWG” and including essential details such as contract or meter numbers and the reason for the complaint. Request a written acknowledgment of receipt at the end of your complaint letter. If the company does not respond or disputes the complaint, you can initiate arbitration with the Federal Network Agency.
