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11/21/2023, 11:00 AM

E.ON achieves trading gain despite consumer association lawsuit over price increases.

The Consumer Association is suing E.ON and Hansewerk Natur for allegedly unlawful price increases in district heating.

The Consumer Center has filed a lawsuit against the district heating providers E.ON and Hansewerk Natur. In recent years, the companies are said to have increased their prices by several hundred percent, which has led to immense financial burden for the customers. The Federation of German Consumer Organisations (vzbv) is planning class-action lawsuits to obtain refunds for those affected.

According to the Funke Mediengruppe, the price increases in recent years are deemed unlawful by the Federation of German Consumer Organisations (vzbv) due to ineffective price adjustment clauses. The consumer protection advocates state that the pricing did not comply with legal requirements. Therefore, the lawsuit focuses on price increases that occurred after the year 2020.

E.ON and Hansewerk Natur strongly deny the allegations and emphasize that they are calmly awaiting the lawsuit. A spokesperson for E.ON explains that their prices are fair and in line with legal requirements. The pricing is based on basic data from the Federal Statistical Office and is therefore transparent. Hansewerk Natur attributes the high price increases to the rising gas prices following the Russian attack on Ukraine and promises lower prices from 2024, when cheaper natural gas can be purchased.

Consumer advocates cite E.ON prices in the Erkrath-Hochdahl supply area in North Rhine-Westphalia as an example, where the gross energy price has increased from 6.18 cents per kilowatt-hour in 2020 to 23.24 cents per kilowatt-hour in 2022. For an annual consumption of 15,000 kilowatt-hours, this means an additional burden of a total of 3500 euros for 2021 and 2022. Similar developments can also be observed with other district heating prices from E.ON and Hansewerk Natur.

Consumers have the option to join class action lawsuits by registering in the complaint register at the Federal Office of Justice (BfJ). This prevents their claims from expiring. The register is expected to be opened in the next few weeks. The lawsuits have been filed with the Higher Regional Courts in Schleswig and Hamm.

The Federal Cartel Office has also become aware of price increases by district heating suppliers. Six companies have to face an abuse procedure because there is suspicion that they have implemented excessive price increases. The authority has not yet announced which providers are specifically affected. The Cartel Office wants to take a closer look at the application of price adjustment clauses, in particular. When the investigation will be completed is still uncertain.

On the stock exchange, E.ON shares can easily gain despite the lawsuit, increasing by 0.26 percent on XETRA to 11.59 euros.

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