Czech energy regulator: Many energy brokers fail to meet information obligations

A large number of energy brokers in Czechia are not adequately meeting their information obligations. The Energy Regulatory Office (ERÚ) found this during recent inspections. Brokers often omit information on their websites, for example about out-of-court consumer dispute resolution. The Office has therefore called on them to put things right or face fines of up to millions of crowns. ERÚ informed ČTK of this today.

„Raising consumer awareness is one of our main priorities. That is why we have called on brokers to remedy their shortcomings without delay. It is very important for customers to know as much as possible about their rights, ideally before entering into any contractual relationship,“ said Markéta Zemanová, a member of the ERÚ Council.

The Office inspected 341 brokers in a nationwide review; they had registered between the start of last year and 30 April this year. Sixty-one of them operate websites, and it was there that the Office found the most frequent shortcomings. Around 70 percent of these brokers do not provide information on their websites about the body responsible for out-of-court consumer dispute resolution. In the energy sectors, that body is ERÚ. People can use ERÚ’s out-of-court resolution process for disputes with either a broker or a supplier.

ERÚ has overseen energy brokers since 2022, when an amendment to the Energy Act regulating brokerage came into force. Before then, brokers operated under the Trade Licensing Act with a so-called free trade licence, meaning the regulator could neither inspect nor fine them.

ERÚ also noted that the revival of the energy market has brought increased activity from dishonest brokers. Since the start of this year, the Office has recorded a rise in consumer complaints about so-called rogue energy brokers. The most common issues include unauthorized door-to-door sales, unsolicited advice and the provision of misleading information. The Office has also recorded aggressive methods by some brokers, who are active in places such as restaurants.