Higher prices – VSV is taking the association to court

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The Consumer Protection Association (VSV) wants to go to court because of the association’s announced price increases. As reported, the energy supplier will increase the electricity price for its existing household and business customers as of March 1. However, the rates are reduced for new customers.

The working price for existing household customers will increase in March to 23.9 cents per kilowatt hour net or 28.68 cents gross. This is also the value that will be demanded for basic services in the future. This is an increase of 80 percent. According to a spokeswoman for the association, the energy supplier has set up an emergency fund of ten million euros for customers with payment difficulties. She also referred to the Caritas fund for electricity assistance for people affected by energy poverty in Austria.

Electricity costs brake intercepts a lot
For average existing customers with an annual electricity consumption of 3500 kilowatt hours, the price increase means an additional monthly payment of five euros (including sales tax). The federal electricity price brake, which applies up to an annual consumption of 2900 kilowatt hours, intercepts a lot. More than half of the Verbund customers have lower consumption and therefore no higher energy costs. However, energy costs only make up about half of the bill, with the rest being network tariffs, taxes and levies.

Company representatives cited higher acquisition costs as the reason for the additional monthly costs. Prices could be lowered for new customers because it was possible to respond more quickly to price movements in the market.

This justification is not sufficient for the Consumer Protection Association (VSV). “In the present terms and conditions, Verbund has no legally compliant price change clause, but only refers to section 80 (2a) of the Electricity Industry Act (ElWOG). Neither in the contract nor in the notice of the price change are the circumstances of the increase such specified that the law would be complied with,” VSV chairman Peter Kolba said in a broadcast.

Another pending lawsuit
The VSV now wants to take the association to court – partly because the energy price per kilowatt hour for customers in the basic service will be increased by more than 80 percent. A lawsuit was already filed in December about whether all electricity consumers or only “those who need protection” are entitled to the favorable basic supply tariff.

Source: Krone

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