Special right of cancellation after a price rise

When you can cancel extraordinarily

If your provider has reserved the right in the contract to change prices unilaterally and does so, you can cancel. Under § 41 paragraph 5 EnWG (Energy Industry Act) you can do this without observing a notice period, effective on the date the change takes effect.

Your provider may not charge a separate fee for this cancellation. The right also applies if the provider changes other contract terms.

How early your provider has to tell you

The provider must inform you in good time and in a simple, understandable way, in any case before the end of a billing period. For household customers (Haushaltskunden) the notice must come at least one month before the change takes effect, for other customers at least two weeks before.

The letter must state the reason, the conditions and the extent of the price change. It must also point out your right to end the contract. If this note is missing, it is worth asking.

Example: how to work out the rise

An example with made-up figures: your provider raises the unit rate (Arbeitspreis) from 32 to 36 cents per kilowatt hour. With 3,000 kilowatt hours a year you then pay 120 euros more. If the standing charge (Grundpreis) changes too, add it in.

Compare the new price with other tariffs, not with the old one. From the effective date, the old price is in the past.

How to recognise the announcement

The notice comes by letter or email and is often called “Preisanpassung” or “Information zur Preisänderung”. It is easily mistaken for an invoice or a newsletter, so it is worth a second look. Keep it, it is your proof.

When the provider names taxes or grid fees

Some providers justify a rise with higher grid fees (Netzentgelte), taxes or levies. Whether this gives you a special right of cancellation depends on the contract and the reason. Read the letter carefully, it has to state the reason. If it is missing or unclear, keep the letter and show it to us.

What you should do now

• Note the date from which the new price applies.
• Choose a new tariff and set its start to that date.
• Send the cancellation in good time before the effective date, not on the last day.
• Upload or keep the provider’s letter or email.

If you are not sure

Whether you have a special right of cancellation in your case depends on the contract. If you have a price guarantee (Preisgarantie), increases are only possible to a limited extent, and there is more in the article on term, notice period and price guarantee. In default supply (Grundversorgung) a short notice period applies anyway, see ending default supply.

Just send us your provider’s letter. We look at it with you and plan the switch so that it starts at the right time. This is not a substitute for legal advice.