Energy prices: Government wants to prevent unjustified increase

Numerous energy suppliers want to increase their prices at the turn of the year. But are they allowed to? A draft law could prevent unlawful price increases – and wants to make the companies bear the burden of proof.

In millions of German households, the price of gas or electricity will probably increase at the beginning of next year. However, the federal government wants to prevent energy suppliers from filling their own coffers with unjustified price increases.

In principle, the prices should not be allowed to increase for the entire next year – valid from January 1st to December 31st. Unless the supplier can prove that the plus is “objectively justified”, as stated in the federal government’s draft law, which of the ARD present. For example, energy suppliers would have to be able to prove that their procurement costs for electricity or gas have increased – for example due to the higher market prices resulting from the energy crisis.

Corporations must demonstrate necessity

The Federal Ministry of Economics confirmed the plans of the federal government. In addition, the authority focused on the so-called reversal of the burden of presentation and proof. This means that the suppliers are obliged to prove to the Federal Cartel Office that a price increase is necessary. Normally it is the Federal Cartel Office that has to prove abuse.

Should the Bundeskartellamt come to the conclusion that a price increase was unjustified, it can order the relevant supplier to stop its “abusive action” and also impose a fine.

The Bundestag and Bundesrat still have to agree

The federal government’s draft law is still in the “parliamentary process”. The approval of the Bundestag and the Bundesrat is still pending.

If both bodies support the planned energy price brakes, they should take effect from March. A retrospective relief for January and February is then also planned. As soon as the price brakes take effect, consumers pay a capped price. The state would then have to cover the difference to the increased utility prices.

Hundreds of suppliers want to significantly increase prices

According to figures from the Internet portal Check24, hundreds of energy suppliers have already announced that they intend to raise their prices at the turn of the year. About a week ago, the portal was aware of more than 580 cases in which the price of electricity for consumers is expected to rise. Around 7.3 million households are affected nationwide.

According to “Bild”, which also refers to Check24, these numbers have now risen again: According to this, 457 gas suppliers want to raise prices, by an average of around 56 percent. That would affect 3.6 million households. According to the figures from the Internet portal, 636 electricity suppliers have announced a price increase, which means that around 7.5 million households can expect an average price increase of 60 percent.

Association of Energy Consumers advises to object

The Federal Ministry of Economics points out that rate increases by gas and electricity providers are often announced at the end of the year – also in order to comply with statutory notice periods. The ministry left it open whether such price increases were unlawful – should the draft law be passed by the federal government. However, it referred to the possibility for consumers to seek advice or other legal advice from the advice centers of the consumer advice centres.

The head of the Federation of Energy Consumers, Leonora Holling, has already emphasized to the “Bild” that consumers have the right to withhold the “payment of the increase”. The price increases planned by energy suppliers are not in proportion to the price development on the stock exchange. “We advise consumers to file an objection,” said Holling.