Vendors' Options for Action
In the Lower Rhine region, located in Rhein-Kreis Neuss, energy suppliers have been prohibited from charging late fees for installment payment agreements following significant arrears that threaten a supply shut-off, according to the Consumer Advice Centre NRW. This legal restriction was upheld by the Higher Regional Court of Düsseldorf's ruling on 13th February 2025.
High electricity bill arrears could potentially lead to power disconnections, resulting in substantial costs, particularly when a bailiff is involved. Accordingly, telco providers are obliged to offer interest-free monthly installment plans prior to disconnection as a means of preventing such situations. However, the NEW Lower Rhine Energy and Water GmbH was found to be charging fees for these plans.
The Consumer Advice Centre NRW successfully contested this practice at the Higher Regional Court of Düsseldorf, pointing out that for high arrears, energy suppliers must offer installment payments with terms of up to 24 months, as opposed to the limited 12-month plan offered by NEW.
Energy bills may go unpaid due to numerous reasons, such as sickness, unemployment, or the utilization of buy-now-pay-later payment methods. A power disconnection can occur as early as two months of missed payments or accumulated debt of €100. In such cases, consumers are entitled to request an installment payment agreement to avoid disconnection.
For those struggling to pay their bills, free advice is available from the Consumer Advice Centre NRW.
More in-depth information on the topic can be obtained through the Consumer Advice Centre NRW's resources at: https://www.verbraucherzentrale.nrw/node/11674 and https://www.verbraucherzentrale.nrw/node/927.
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The ruling by the Higher Regional Court of Düsseldorf on 13th February 2025 has made it clear that energy suppliers, including the NEW Lower Rhine Energy and Water GmbH, should not charge fees for installment payment agreements, especially when high arrears are involved. In the finance industry, business strategy should prioritize the needs and protection of consumers, considering that late charges and disconnections can be economically burdensome, especially for those facing hardship due to reasons such as sickness, unemployment, or the use of buy-now-pay-later payment methods.
