The Consumer Information Association (VKI) is suing energy supplier Verbund after it increased the electricity price. The consumer advocates complain that the electricity producer on the one hand advertises with the slogan “100 percent from Austrian hydropower”, but on the other it adjusts its prices to a European energy exchange.
Prices on this, the energy exchange EEX (European Energy Exchange), have risen sharply in recent months. Verbund has stipulated in its General Terms and Conditions (GTC) that its own electricity price is calculated on the basis of this. “For many consumers, it is completely incomprehensible why the association links its price to a market price, even though it probably produces most of the electricity for domestic customers itself and has made significant excess profits from the increased prices,” said Thomas Hirmke, head of the legal department of the VKI.
This is how the price of electricity works
The price for a megawatt hour of electricity is currently determined on the electricity exchange through a special auction process, the so-called merit folder. This means that the most expensive power plant that meets the demand for electricity sets the price. Even if the electricity is generated entirely from hydropower, the suppliers are bound by this wholesale price. Currently, gas-fired power plants determine the price, which has led to a general increase. Verbund already claimed this price structure when a woman from Linz filed a lawsuit in early July.
Lawyer considers class action lawsuit
Lawyer Michael Poduschka recently filed a lawsuit against the association with a similar justification – the stock market orientation clause. He had previously considered a class action lawsuit against ORF because “hundreds” of electricity customers had contacted him. At the time, the company said the allegations would be “objectively investigated in depth” and that the criticized clause was in line with the law. In addition, it is clearly and understandably communicated that “significant price changes” are possible. “We are confident that our approach is legally compliant and will also bring this into the legal proceedings,” it said. The energy supplier is 51 percent owned by the Republic of Austria.
Politicians have been discussing capping the price of electricity in recent weeks – something Slovenia, among others, has opted for. In addition, several European countries have lowered the energy tax.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
