Installment payment charges declared invalid as per the Stromsperren decree - The Court of Justice consistently maintains that the Commission's decision to initiate legal actions against the involved party is not inherently justified.
Energy providers now need to provide a no-cost monthly installment plan before cutting off power, as per a recent court ruling. This ruling came after consumer advocates filed a lawsuit against a company that had been charging fees for such plans. According to Kolja Ofenhammer, a lawyer at the Consumer Center NRW, charging extra fees for struggling customers is counterproductive.
In this new regulation, energy companies are prohibited from charging fees for installment payments in the event of payment defaults, as per the ruling by the Higher Regional Court of Düsseldorf. Companies are also required to offer installment plans lasting up to 24 months for high default cases, ensuring the plan remains affordable.
This ruling serves to protect consumers against sudden power cuts and provides them with reasonable time frames to clear their debts. It also acknowledges the need for assistance in managing payment difficulties rather than creating additional hurdles. The Consumer Center NRW offers consultation services for individuals facing payment difficulties.
While the specific ruling regarding the duration of fee-free installment plans for households with high payment defaults is not available, it is essential to understand that German energy suppliers must adhere to regulatory requirements and consumer protection laws. These guidelines may indirectly impact how energy providers handle payment defaults and offer installment plans. For detailed information, it would be necessary to consult legal or regulatory documents related to energy supply and consumer protection in Germany.
The Lower Rhine region is now under the jurisdiction of this ruling, which prohibits energy companies from charging fees for installment payments in case of defaults. Defaulting customers in Düsseldorf and beyond can benefit from installment plans lasting up to 24 months, ensuring affordability. Advocates for consumers celebrate this decision, as it provides them with more time to clear debts and avoid sudden power cuts.
