Electricity and gas customers should be better protected by law

Electricity and gas customers should be better protected by law

Thousands of electricity and gas customers received notice of termination from one day to the next. Now the legislator wants to better protect consumers against such practices by low-cost providers.

With a legal reform, the federal government wants to put a stop to short-term terminations of electricity and gas contracts by cheap suppliers and price jumps. “We must not leave consumers out in the rain again,” said Oliver Krischer (Greens), Parliamentary State Secretary in the Federal Ministry of Economics, the German Press Agency in Berlin. “It was and is a great burden for many people and a great shock to suddenly find a cancellation from the gas or electricity provider in the mailbox.”

Specifically, Krischer announced that there should be uniform tariffs in the basic service in the future, so that new customers do not pay twice or three times as much as existing customers. “Split basic service tariffs are ultimately just an unnecessary employment program for courts, which we want to avoid.” Split tariffs mean a split for new and existing customers.

In addition, the termination of gas or electricity deliveries should in future have to be announced several months in advance so that consumers can look for a new supplier in peace, says Krischer.

Thousands of contracts canceled

The ministry wants to react to the fact that many low-cost providers have experienced turbulence and thousands of contracts have been terminated. These consumers then fall into the so-called replacement supply with the basic supplier of the respective municipality – but according to the consumer centers often have to pay significantly more.

“There is a need for action,” said Krischer. “We therefore want to raise the hurdles for delivery stops and put the instrument of basic and replacement care on a new footing.”

The ministry will also make suggestions as to how the Federal Network Agency can better filter out dubious competitors. “The fact that around one million gas and electricity customers are terminated within a very short time must not be repeated.”

trouble in primary care

Consumers would have to pay up to 1654 euros more per year for new customer tariffs than existing customers, according to a position paper by the Federal Association of Consumer Organizations. Some basic suppliers, who have previously purchased electricity or gas for their customers for a longer period of time and, in view of the current price increases, feel compelled to buy additional energy earlier than planned on the spot market at significantly higher prices due to the increased number of new customers.

As a result, some basic suppliers have switched to distinguishing between new and existing customers and supplying new customers at more expensive tariffs. From the point of view of the consumer advice centers, however, this is legally inadmissible, dangerous for fair competition and also incomprehensible.

According to information from the consumer advice centers, there are already seven warnings nationwide and one threat due to the cessation of electricity supplies, the termination of contracts or extreme price increases. Further warnings are planned.

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From circles in the Ministry of Economic Affairs, it was said that concrete proposals for adjustments to the Energy Industry Act would now be quickly drawn up in close cooperation with the Ministry of Consumer Protection. It is about more protection for consumers through clear notice periods before deliveries are stopped and about improvements in the regulations for alternative supply and basic supply.

There is basic agreement among the responsible actors that there is a need for regulation after the large energy suppliers have stopped supplying electricity and gas. In addition to the Ministry for Economic Affairs and Climate Protection, the actors are the Federal Ministry for the Environment and Consumer Protection, the Federal Network Agency and the Federal Cartel Office.

Consumer Protection Minister Steffi Lemke (Greens) told the dpa: “The federal government is monitoring the behavior of market players very closely and is examining possible regulatory steps.”

Economics Minister Robert Habeck (Greens) had told the “Spiegel” that the electricity market, like the gas market, had been completely liberalized. “Obviously not all electricity suppliers could keep the promises they made to customers. A discount mentality has emerged that only works if everything is running smoothly. As soon as there are uncertainties in the market, everything collapses.” The ministry is working on readjusting the tariff requirements.

There are also voices from the opposition for more regulation of the energy market. The Saarland Prime Minister Tobias Hans (CDU) told the Düsseldorf “Rheinische Post” (Monday) that there was a serious energy crisis in Germany. “That’s why I’m calling for a federal-state summit that decides on a concrete plan of action.” This must include state regulation for cheap and basic service providers in order to prevent “excesses”.

The Federal Association of Energy and Water Management had protected the basic suppliers. After the energy discounters stopped delivering, the suppliers would have had to buy additional electricity or gas quantities overnight from energy trading for the customers concerned.

Source From: Stern

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