Six energy firms to face mass claim for illegal rate hikes

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Campaigners have launched a mass claim against six energy companies, accusing them of illegally increasing rates for people on variable contracts from 2017.

The case stems from another court ruling earlier this year, concerning Vattenfall,  which put up its variable rates in April 2022 in response to rapidly inflating prices on the international gas markets, which quadrupled between January and August.

This March, the appeal court in Amsterdam said Vattenfall’s decision to hike prices in April was an “unfair trading practice” because the conditions of its variable contract said its rates would change twice a year, in January and July.

“The court was clear that the rate changes were unfair and illegal. This subpoena marks the start of the legal procedure,”  said Esther Janssen from the claim organisation Eerlijkeenergieprijzen.nl.

Essent, Eneco, Greenchoice, Energiedirect and Budget Thuis are also included in the claim, which could run from hundreds to thousands of euros per household depending on energy use and the term of the contract.

Two international mass claim financiers will shoulder the cost of the claim, which is based on a no-cure-no-pay principle. If granted, part of the compensation will go to them.

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