The turbulent situation on the electricity and gas markets presented major challenges not only to suppliers, but also to their customers. “The prices have gone crazy on a scale we have never seen before,” said Wolfgang Urbantschitsch, E-Control board member. Regulations to protect customers are therefore more important than ever. The regulator is therefore now asking energy suppliers to take action.
Substantially higher prices for electricity and gas or even terminated contracts caused great uncertainty among customers last year. According to Urbantschitsch, this has led to an “enormous need for information” and people are increasingly dependent on help. E-Control’s advice, arbitration and complaints desks were more popular than ever in 2022, the rate calculator experienced a record high with a tripling to 880,000 hits.
Difficult situation for new customers
Due to contract terminations, many customers were also looking for a new supplier. However, there were few and especially expensive offers for new customers. For the first time there was therefore great interest in basic facilities. A number of suppliers have tried to prevent customers from asserting their right to basic services, for example by having to demonstrate a social need.
E-Control initiated monitoring procedures and instructed the companies involved to offer a basic rate for services that complied with the law.
Terminations are always illegal
Some companies have also acted incorrectly when terminating contracts. For example, at the same time as the cancellation, customers were offered a new contract at significantly higher or flexible prices (float product). In addition, “partially valid price guarantees were disregarded, the legal notice period was not always observed or sometimes even a different product was delivered than agreed”, according to Urbantschitsch.
Reminder for better customer protection
While many problems have arisen with the crisis situation in the energy market, “many other problems seem almost ‘homemade’ to us and, from E-Control’s point of view, could be solved,” said Urbantschitsch.
The regulator warns energy suppliers to better protect customers in the future and has drawn up ten requirements for this. The requirements are a signal to the industry, but also a message that “it doesn’t work for many companies on some or many points,” the board said.
Billing per meter, not per calculation
At settlement, consumption should not be calculated, but on the basis of a meter reading. In addition, companies must ensure that they are also accessible to customers. If not, resources should be increased. In the event of payment difficulties, energy companies must provide information about support measures and there must be specially trained contact persons for facilities representing non-payments.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
