Consumer Protection Enhanced: Court Rules Against Utility Surcharges and Enforces Extended Payment Plans for Threatened Strom Disconnections
Background
In a landmark legal victory, the Consumer Protection Agency (Verbraucherzentrale) has successfully obtained a court ruling that strengthens protection for consumers facing imminent power disconnections. The ruling by the Düsseldorf Higher Regional Court (Oberlandesgericht Düsseldorf) prohibits energy providers from imposing fees for installment payments in cases of payment arrears. Additionally, companies are now obligated to offer installment plans with durations of up to 24 months for customers with substantial debt.
Legal Proceedings
The legal battle stems from a case involving NEW Niederrhein Energie und Wasser, a utility that charged fees for installment agreements. The Consumer Protection Agency contested this practice and filed a lawsuit. In a ruling dated February 13, 2025 (Case No. I-20 UKI 7/24), the court found in favor of the consumer rights advocates.
Details of the Ruling
The ruling mandates energy providers to offer interest-free monthly installment payments prior to disconnecting electricity service. Kolja Ofenhammer, a legal expert at the Consumer Protection Agency, emphasizes the importance of these agreements in preventing power outages and allowing consumers to manage outstanding balances. "Imposing additional fees on customers who are already struggling to pay their energy bills is counterproductive," Ofenhammer stated.
According to the Consumer Protection Agency, utility companies can proceed with power disconnections if a customer accrues two months of unpaid installments totaling at least 100 Euros. However, the right to installment payment plans is in place to safeguard households from abrupt power loss. "To ensure affordability, energy providers must extend installment plans up to 24 months for consumers with significant arrears," Ofenhammer explained. NEW Niederrhein Energie und Wasser had previously limited installment plans to 12 months, which was also deemed unlawful by the Düsseldorf Higher Regional Court.
Implications for Consumers
"This ruling reaffirms consumers’ rights and protects them from sudden power disconnections," Ofenhammer said. Individuals facing financial difficulties require practical assistance to manage their debts, not additional obstacles that exacerbate their situation. The Consumer Protection Agency offers counseling services for consumers struggling with payment issues.
Conclusion
The court’s decision is a significant victory for consumer rights and provides much-needed protection for individuals facing potential power disconnections. The ruling prohibits utility companies from imposing surcharges on installment payments and mandates extended payment plans to ensure affordability and prevent sudden power outages. The Consumer Protection Agency remains committed to advocating for the rights of energy consumers and providing guidance to those experiencing payment difficulties.
