• The electricity and gas seller cannot punish consumers for terminating the contract before its expiration.
• It is also unacceptable to automatically extend contracts for a definite period of time.
• UOKiK initiated proceedings to declare 47 clauses applied by Polski Prąd i Gaz (PPiG) unlawful.

The company Polski Prąd i Gaz (formerly Polska Energetyka Pro) sells electricity and gaseous fuel. UOKiK has already imposed a fine on it once for misleading consumers by  passing itself off as their current electricity provider (this case is to be settled before the Appeal Court). UOKiK has raised doubts about some of provisions applied by PPiG in its contracts. PPiG’s clients also refer to these provisions in their complaints. As a result, there are charges brought against the company and pending proceedings to declare 47 contractual provisions unlawful.

UOKiK questions two groups of provisions. The first relates to fines for earlier termination of contracts concluded for a fixed term, namely for 48 or 60 months. Polski Prąd i Gaz reserved that if a consumer wants to terminate the contract before the end of its term, he/she will have to pay the so-called one-time fee. Depending on the contract, it was PLN 11 or 17 for each month left to the contract expiration date. Similar provisions applied when the company terminated the contract due to the client’s fault.

According to UOKiK, such provisions are unacceptable in the energy industry, especially when contracts are concluded for several years. They restrict the consumer’s fundamental right to freely choose electricity or gas supplier. This right is envisaged in the provisions of energy law. The situation in the telecommunications industry may be somewhat different as fees for early termination of fixed-term contracts account either for a refund of discounts given to customers when they conclude contracts or reimbursement of equipment, such as telephones or routers purchased at a promotional price along with concluding the contract for telecommunications services. 

Polski Prąd i Gaz cannot use heavy fines to discourage consumers from changing electricity or gas supplier. Furthermore, the company makes it difficult for clients to terminate contracts consumers be misleading them (they thought they signed an annex with their previous provider). The imbalance in contracts also raise doubts. The company imposes heavy fines on its clients, and it gets off scot-free itself if it does not fulfil its obligations, says Marek Niechciał, President of UOKiK. He also points out that fees are excessive, and their amount cannot be explained by costs incurred by PPiG. For example, if the consumer terminates the contract concluded for 60 months after 5 months, he/she must pay PLN 935. Meanwhile, the company has some options to flexibly respond to the change in demand and may resell electricity or gas to another recipient, adds Marek Niechciał.  

The second group of contractual provisions subject to UOKiK proceedings relates to the extension of contracts. According to the rule applied by Polski Prąd i Gaz, contracts that are about to expire are automatically extended for a definite period, this time for 36 months, unless consumers make a special statement 45 days before the end of the first contract at the latest. In principle, fixed-term contracts should be terminated upon their expiry. This is a unique situation because consumers must be provided with electricity continually. Therefore, we allow automatic extension of contracts, but only for an indefinite period so that customers can terminate them at any time, explains Marek Niechciał, President of UOKiK.

UOKiK may impose a fine on PPiG amounting up to 10% of its turnover from the previous year for using abusive clauses. Such clauses are not binding.  

Be careful when signing a contract with an energy company! Watch this short video material made by the Aquila Association and learn how to avoid traps.

Consumer service:

Phone: 801 440 220 or 22 290 89 16 – consumer helpline
E-mail: porady@dlakonsumentow.pl
Consumer‘s ombudsman  – in your town or district

Additional information for the media:

UOKiK Press Office
Pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone +48 695 902 088, +48 22 55 60 246
E-mail: biuroprasowe@uokik.gov.pl
Twitter: @UOKiKgovPL