Overview
- The Court of Justice of the European Union decided on Thursday that the Bundesgerichtshof’s practice of limiting challenges to price increases to three years is not compatible with EU consumer‑protection law.
- The ruling came from a reference by the Kammergericht Berlin in a dispute over annual Fernwärme price changes from 2015 to 2020, and the Berlin court must now apply the EuGH’s interpretation when it finishes the case.
- The EuGH said contracts should generally stay binding after abusive clauses are struck out and it limited suppliers’ ability to unilaterally ‘repair’ invalid price clauses, but it did not order automatic full refunds—national courts will decide remedies case by case.
- The decision will lower procedural barriers for customers to press refund claims, a point highlighted by consumer groups, and could increase litigation as courts and companies adjust to the new legal test.
- The ruling arrives as the German government advances its Wärmenetzpaket to improve price transparency, collect supplier data centrally, make adjustment clauses clearer, and create a mediation body to reduce disputes and help manage financial risks for local heat providers.