Titled: Questioning Energy Suppliers' Relief Requests: The Federal Cartel Office's Probes
Are individual energy suppliers misusing the state's generosity under the price brakes? The Federal Cartel Office has taken note of this potential concern, initiating numerous inquiries in the first half of the year as part of its vigilance against abuse. Today, the watchdog announced that it's now handling 57 cases. Gas accounted for 23 probes, district heating and electricity each contributed 17. The authority refused to name the companies under scrutiny.
The total value of these investigations cumulates to approximately two billion euros. In comparison to the relief amounts requested in the reviewed period, this represents around 15% for gas and heat, and nearly 20% for electricity.
The price brakes for electricity, gas, and district heating will persist until year-end. They shield consumers from exorbitant energy costs, enabling compensation payments to energy providers. Suppliers with invoices under the Cartel Office microscope may have exaggerated their costs, potentially justifying excessive state aid.
The Cartel Office issues cautions
"We're narrowing our focus to the obvious instances among the multitude of applications from suppliers," clarified Andreas Mundt, President of the Cartel Office. The criteria for selection primarily include anomalies in the working price or a combination of high working prices and substantial relief requests. "The suppliers must justify their pricing to us. If it doesn't align, we issue a warning first," Mundt explained. A spokesperson verified that this has transpired in multiple instances.
"Suppliers have the chance to recalculate and rectify their behavior if necessary," said Mundt. Assessments on the cases will only commence after next year, when final invoices are issued. "Should we uncover abuse of the relief rules in the final investigations, we will impose penalties and, if required, demand refunds from the state," Mundt warned.
Also worth a read:
- The misuse of price breaks by energy providers may result in substantial refunds to Germany's national treasury, making up nearly 20% of the relief granted in the electricity sector.
- Andreas Mundt, President of the Federal Cartel Office, asserts that the organization's primary focus is on "conspicuous cases," highlighting unusual variations in working prices or large relief requests from suppliers accompanying high working prices.
- The Federal Cartel Office has launched 57 investigations into potentially distorted use of price brakes in the first half of the year, with gas accounting for 23, district heating, and electricity each discovers 17 probes.
- The price brakes serve to protect consumers from exorbitant energy costs by capping a significant portion of energy expenses. Relief payments are allotted to energy providers in exchange.
- Andreas Mundt explained that inconsistencies in companies' pricing will generate warnings first, followed by the opportunity for these entities to reassess and adjust their pricing tactics if need be.
- A spokesperson for the Federal Cartel Office confirmed that warnings have been dispatched in various instances, underlining that the authority has the power to penalize confirmed abuses and, if necessary, demand refunds from the state.
- German consumers heavily rely on price brakes to manage their energy expenses, making it essential for the Federal Cartel Office to maintain fairness and honesty in relief payments by energy providers.
