European Court of Justice strengthens consumer rights against energy price hikes

The European Court of Justice (ECJ) has ruled in favor of consumers regarding unlawful energy price increases, overturning a previous legal standard used in Germany. In case C-900/24, the court determined that customers are not required to accept illegal price hikes simply because they failed to object within a specific timeframe.

This decision directly challenges the German Federal Court of Justice (BGH) 'three-year solution,' which previously held that consumers had to contest unjustified energy price increases within three years of receiving their annual statement. Under that rule, if no objection was made, the price increases—even those based on invalid contract clauses—became legally binding. The ECJ ruled that this restriction is incompatible with EU law, specifically Directive 93/13/EEC regarding unfair terms in consumer contracts.

The ruling originated from a legal dispute in Berlin involving district heating costs. The court emphasized that energy providers cannot unilaterally 'repair' or retroactively validate abusive price clauses, and consumers' rights to reclaim overpayments cannot be limited solely by the absence of a timely objection.