Consumer rights towards energy suppliers are strengthened - overview of the current legislative amendments

In 2021 and 2022, consumer rights in particular were strengthened and corresponding EU directives implemented with an amendment to the Energy Industry Act and the Fair Consumer Contracts Act. For energy suppliers, this meant far-reaching changes to electricity and gas supply contracts and the associated billing and cancellations. It is interesting to note that not only consumers but also commercial customers are to benefit from the changes to the law.

The provisions of the EnWG only affect special customers, as the StromGVV and GasGVV apply to customers in the basic supply. The GVV has therefore also been adapted accordingly in favour of customers.

Conclusion of contracts for the supply of gas and electricity

The new regulations not only have an impact on the content of the contract, but also on contract adjustments, the extension of the contract and its cancellation.

Conclusion of contract only in text form

The new EnWG stipulates that contracts with household customers may only be concluded in text form.

Extended contract content

What´s new is that the contracts must contain information on:

• the name and address of the energy supplier

• the market location identification number (MaLo-ID)

• the start of the contract

• information on whether measuring point operation is part of the service, and

• the timing of the settlements

New obligation to summarise contracts

The customer must also be provided with a concise, easily understandable and clearly labelled summary of the most important contractual conditions within one week of concluding the contract.

Short deadlines for contract amendments

 

Price adjustments must be announced with a notice period of one month for household customers and otherwise with a short notice period of two weeks. Prior to the amendment to the EnWG, a notice period of 6 weeks applied.

New regulations on tacit contract extensions

According to the Fair Consumer Contracts Act, an automatic contract extension should only be effective if the contractual relationship is extended for an indefinite period and the customer is granted a right of cancellation of 1 month. For companies, this means that they can only expect a long-term customer relationship if the customer actively agrees to a contract extension.

In addition, the maximum cancellation period permitted in the general terms and conditions has been reduced to 1 month.

Easier cancellation for the customer

The customer may give notice of cancellation verbally, electronically or in writing. If a household customer cancels their contract, the energy supplier must confirm the cancellation in text form within one week of receipt and also state the end of the contract. Cancellations by the energy supplier to household customers, on the other hand, may only be declared in text form.

In the event of a change of residence, the rule that the contract is automatically continued and the customer only has limited cancellation options no longer applies. The customer now has the advantage that they can terminate the contract whenever they change their place of residence (even after moving) and the energy supplier must actively oppose the cancellation if they wish to continue the supply relationship.

Invoices for gas and electricity supplies

Billing processes and invoice templates must also be adapted in line with the new EnWG.

Regular transmission of billing information

The Energy Industry Act distinguishes between billing and billing information. Billing information is all information with the exception of the payment request itself. This includes, for example, information on the initial and final meter readings, the determined consumption, the metering point operator, the contract term, the next possible cancellation date and the cancellation period. One new aspect here is that the billing notification must include the selected tariff and information on whether the supply is part of the basic supply or not. When specifying the price and calculation components, care must also be taken to ensure that the terms used are defined in a generally understandable way.

The customer must also be informed of how the meter reading was determined (e.g. via the network operator, by reading or estimating consumption). If the consumption was estimated, the energy supplier must also state why and how the estimate was made.

If the customer has opted for electronic transmission of the bill and remote reading of consumption data is not possible, they are entitled to a six-monthly update of their billing information. Customers with remote reading receive their billing information on a monthly basis.

Customers can also request the energy supplier to provide them with information on their consumption history over the last 3 years.

Paper or electronic invoice

Customers now have the option of receiving their invoice both in paper form (once a year) and electronically, regardless of whether they are online customers.

No more contract information on the invoice

 

However, the obligation of the energy supplier to additionally state the contract information in every bill has been cancelled.

Due date for credit balance payment specified

Another new requirement introduced into the Energy Industry Act is that the invoice amount and due date must be clearly recognisable and highlighted. Payment claims are also due at the earliest 2 weeks after receipt of the bill. If household customers are in arrears with payment, the energy supplier must inform the customer of ways in which they can still prevent blocking (e.g. by means of instalment payments, energy advice or debt counselling) before blocking.

Energy suppliers are now also obliged to pay any credit balance to the customer within 2 weeks (for instalment payments) or within 4 weeks (for final invoices).

If you have any questions on the above topics, please do not hesitate to contact us - we look forward to hearing from you.