Contract terminations

Electricity price increase: first lawsuits have failed

Terminated contracts and new, more expensive offers - this is how Kelag implemented the electricity price increase last summer. However, some customers did not want to accept this approach and took the matter to court. Now the first rulings have been handed down that prove Kelag right.

"The rulings from the Klagenfurt District Court confirm that we acted in accordance with the law. However, we are still not satisfied," explains Kelag's Head of Sales Alexander Jordan in an interview with the "Krone" newspaper. He is referring to the current legal situation in Austria. "Energy suppliers and energy customers need legal certainty. This does not currently exist," says Jordan. "Not a single electricity price adjustment in Austria has not been the subject of a complaint."

Court agrees with Kelag
Eleven civil lawsuits have been filed against Kelag. "We have around 200,000 customers, 99 percent have stayed with us. Therefore, eleven lawsuits are not very many in relation, all of which were brought by one lawyer," the Head of Sales points out. "Two of them failed on formal legal grounds, but in the third, the court found that our approach was appropriate and that it was not a notice of termination or circumvention." 

New contract even in the event of a reduction
However, the current legal situation not only makes price increases more difficult. "A new contract was also necessary for our electricity price reduction on April 1 in order to be on the safe side legally," explains Alexander Jordan. "And although there was no new commitment and only a price guarantee for twelve months, only just under 60 percent accepted the offer and now have a cheaper tariff." To increase this rate, the Carinthian energy supplier is planning further campaigns in June and July.

New regulation is required
Ultimately, however, it is up to the legislator at federal level to make the process less cumbersome in future. E-Control also points out the problem and sees the current procedure as the only safe way forward. "We are not alone in our demand for legal clarity - the provincial governors' conference also wants a clear new legal regulation," Jordan clarifies. "But this has not yet been implemented."