Announcing increase in the price of utilities

The complainant requested investigation of the procedure of the Energy Regulatory Office, to which he had sent a complaint against the procedure of an energy supplier in announcing an increase in energy prices. The complainant argued that he had not been informed of the price increase since it had only been announced online on the supplier’s website and at the supplier’s establishment, which was very distant from the complainant’s place of residence. He stated that in so doing the supplier had infringed on his right to withdraw from the service contract on the basis of increase of energy prices. However, the Energy Regulatory Office found no error in the energy supplier’s procedure. It concluded that the supplier acted in accordance with the Energy Act, which lets suppliers choose whether they inform the customers specifically or generally (the method used does not affect the deadline within which the customer may withdraw from the contract due to increase in price).

The deputy-ombudsman initiated investigation where he addressed the issue of whether the price of energy may be changed unilaterally, without there being prior agreement on the reason for the change in the contract, and further whether the energy supplier is obliged to announce the increase in energy price to the customer specifically, or a general publication of the notice (e.g. on the supplier’s website) is sufficient.

He concluded that the conditions of the energy service contract executed by the customer may be changed unilaterally if changes are agreed in advance in the contract and, at the same time, the contract stipulates reasonable causes for such changes in order to ensure their predictability. The above conclusion follows from EU directives and Euro-conforming interpretation of the Civil Code (its provisions concerning unreasonable agreements). The Energy Regulatory Office agreed with the conclusion.

In the second issue of informing customers of changes specifically, my deputy concluded that the relevant provision of the Czech Energy Act is not in accordance with the European energy directives, which stipulate the obligation for the energy suppliers to inform the customers of any increase in charges directly, at an appropriate time and in a comprehensible manner. Therefore, the ombudsman commented on the draft amendment to the Energy Act and recommended to introduce a duty of the energy supplier to specifically inform the customers of each increase in charges (unless the customers do not wish to be informed specifically). The Ministry of Industry and Trade accepted the recommendation and agreed to amend the Energy Act in order to impose a duty on suppliers to specifically inform the customers of increases in energy prices. The Energy Regulatory Office welcomed the amendment.