Czech energy regulator warns suppliers: Price increase notices must be addressed individually; website publication is not enough

The Energy Regulatory Office (ERÚ) has warned energy suppliers of the potential consequences of improperly notifying customers of price increases. Notifications must always be addressed individually and demonstrable. According to the ERÚ’s view and its interpretative opinion, merely publishing a new price list and announcing a price increase on the supplier’s website does not constitute such notification.In connection with rising energy commodity prices, many energy suppliers have had to increase their price lists for customers whose prices were not fixed. While changes to supply prices were relatively rare before last autumn, some suppliers have revised their price lists repeatedly since then.The Energy Regulatory Office, however, points out that price increases are also subject to statutory rules that must be observed. If these are not complied with, the price increase has no legal effect. In other words, no change takes place and the original supply prices remain valid.

“The answer is clear, and we remind all suppliers that when they raise prices, posting a new price list on their website is not enough. Although the method of notification is set out in the specific contract, it too must not conflict with the law. Legislation clearly requires suppliers to notify price changes demonstrably and individually,”says Markéta Zemanová, a member of the ERÚ Board, adding:“When a supplier places a notice only on its website, it would be difficult for it to demonstrate that it made sufficient efforts to ensure that the information actually reached its customers.”

“We have encountered the view among some suppliers that the obligation to notify a price change only came with the amendment to the Energy Act. Let me correct that misconception. Under the Civil Code, unnotified price changes have never been taken into account. So if anyone tried to conceal last autumn’s price increases from consumers, it did not help them much, because they cannot now demand payment of the increased price. Among other things, we have recently confirmed this decision-making practice in our proceedings,” said ERÚ Board member Ladislav Havel.