District heating is becoming more and more expensive
EON customers can join class action lawsuits
February 27, 2024, 2:20 a.m
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Consumer advocates are outraged: In several federal states, EON has “noticeably increased” the prices for district heating – which is why the Federal Consumer Association is calling for resistance. Customers are now able to sue the energy company. EON doesn’t understand the fuss.
EON’s district heating customers can now join a class action lawsuit brought by consumer advice centers against the group because of excessive prices. The Federal Office of Justice opened the lawsuit register on Monday. The Federal Association of Consumer Organizations (VZBV) expects customers in some supply areas to be able to demand additional payments of up to four figures.
“EON has noticeably increased the prices for district heating in several federal states in recent years,” said the association’s board member, Ramona Pop, to the newspapers of the Funke media group. “From the point of view of the Federal Association of Consumer Organizations, the price increases are not justified.” EON had increased district heating prices several times since 2020 – long before the prices skyrocketed significantly with the start of the Ukraine war.
The Federal Association of Consumer Organizations sees the price increases as a legal violation – and has filed a class action lawsuit against EON before the Hamm Higher Regional Court. Another lawsuit is pending against Hansewerk Natur. According to the VZBV’s assessment, the price increases after 2020 are ineffective because the price change clauses, according to which suppliers are allowed to make price adjustments, do not meet the legal requirements.
EON: “Comprehensible basis for price changes”
EON defended its pricing policy towards the Funke media group’s newspapers. “Our district heating prices follow the legal requirements and adapt to cost and market developments,” said an EON spokeswoman. “The pricing is based on price components that are based on published basic data from the Federal Statistical Office that can be viewed at any time. This ensures that there is an objective, independent and comprehensible basis for price changes.” In 2022, EON even passed on the reduced VAT rate of seven percent to its customers for the entire year, although this was only mandatory from October, the spokeswoman said.
District heating providers rely on the price adjustment clause when making price changes. However, these are considered opaque and controversial. The price increase is justified with reference to a natural gas stock exchange index, which does not reflect the actual procurement costs at which the energy for the generation of district heating was purchased.