Starting from 1 October, energy suppliers will no longer be permitted to offer ‘deceptive discounts’ on energy contracts. Suppliers will also no longer be allowed to amend their contracts in the middle of the month and give these contracts an identical the same name. The changes have been confirmed by the federal energy regulator, CREG.
Deceptive discounts are substantial introductory discounts on electricity and natural gas contracts. They are factored into price comparison tools, which often means these contracts appear to be the most favourable option in a price comparison.
However, these discounts are often subject to strict conditions. For example, customers must remain on the same energy contract for one or two years before the amount is deducted
From 1 October, this will no longer be permitted. Discounts must apply from the very first kilowatt-hour and remain in force for the entire duration of the contract.
Suppliers of natural gas and electricity are also no longer permitted to change the pricing terms of a particular product for new contracts in the middle of the month whilst retaining the same product name. This is intended to prevent confusion amongst customers.