Czech energy regulator found illegal practices in suppliers' terms last year, fines loom

Last year, the Energy Regulatory Office (ERÚ) found serious shortcomings in the terms and conditions of some suppliers during inspections, and identified possible illegal practices at seven of them. The suppliers now face hefty fines. ERÚ said so in a press release today. It did not name the suppliers where problems were found.

Last year, ERÚ conducted a comprehensive review of the websites of individual electricity and gas traders. “Specifically, we focused on contractual terms and conditions, a key document when switching suppliers. We found serious shortcomings at some traders, which is one reason why we will repeat these comprehensive inspections regularly in the future,” said Markéta Zemanová, a member of the ERÚ Council.

According to the office, 30 of the 57 traders reviewed had not published all the required documents on their websites. “We asked them to add the documents required by law. Most of those contacted subsequently published complete terms and conditions. We launched individual inspections of ten suppliers that failed to meet their obligations. In addition, we suspect that the contractual terms and conditions of seven others violate the law. Our inspection also focused on them,” Zemanová said.

Among the violations found, she cited, for example, a shorter notice period for automatic contract renewal than required by law, as well as illegal procedures for making unilateral changes to contracts and price lists. ERÚ also examined other supplier terms that do not directly violate the law but make them harder for consumers to understand.

These often included important provisions that appeared hidden in the general terms and conditions rather than in the main contract. Contracts also often lack information that would allow customers to get at least a general idea of when supply will begin. The office has not yet specified the next steps in the proceedings against the suppliers.