Unauthorized Price Increase: Verbund Must Reimburse, Otherwise Class Action Lawsuit Threatened

The verdict was issued by the Supreme Court (OGH) in a case brought by the former head of the Consumer Protection Association (VSV), Peter Kolba. Verbund refers to already made one-time payments and is reviewing further steps.

OGH Verdict: 2023 Price Increase Unlawful

Verbund, like other providers, relied on the fact that the newly created § 80 Abs 2a of the Electricity Industry and Organization Act (ElWOG) in a short-term amendment request by the Greens in January 2022 had established a legal right to change prices, writes the VSV. However, this legal text does not provide "a legal authorization for the supplier to change the tariffs for existing contracts," according to the OGH verdict (8 Ob 115/24f). Rather, another agreement, such as in the General Terms and Conditions (GTC), is necessary as a basis for a price change. However, the GTC of Verbund are not suitable to justify a unilateral price change by the company, the OGH states.

VSV Demands Refunds, Otherwise Plans to Sue

VSV chairwoman Daniela Holzinger-Vogtenhuber calls the additional revenues of the electricity company from the price increase "unlawful gains" and now wants to hold talks with Verbund about refunds. The flat-rate refunds previously made by the company are far too low. "Thousands of cases" with claims for a refund have accumulated at the VSV. The VSV has already filed an injunction for the future, and if the talks about compensation for electricity customers do not lead to a result, the VSV also plans to file a "remedial action."

Verbund "confirms receipt of the verdict and is analyzing further steps, also in connection with the VSV's injunction," according to a statement from the company on Wednesday. In it, Verbund also refers to an agreement with the Chamber of Labor Upper Austria, according to which those affected by the 2023 price increase received one-time payments of 20 to 85 euros depending on consumption payments.

2022 Price Increase Also Unlawful

The price increase by Verbund in 2022 was also declared unlawful by the court. Ultimately, Verbund agreed in September 2024 with the VKI on a flat-rate compensation for the overpaid amounts. At that time, there was a refund of around 90 euros for an average electricity consumption of 3,300 kWh, Verbund recalls.

Like other energy providers, Verbund demands "clear regulations for price changes to ensure legal certainty for providers and end consumers alike." Currently, active consent from customers must be obtained for every price change. However, a revision of the Electricity Industry and Organization Act (ElWOG), which should provide clarity, is still awaited.

(APA/Red)

This article has been automatically translated, read the original article here.