In a landmark case, fwp achieved a significant victory for the energy sector. The case involved a review of price adjustment clauses in the General Terms and Conditions (GTC) of a well-known Austrian energy supplier. The Supreme Court ultimately confirmed, with final and binding effect, the validity of the contested price adjustment clauses.

Legal Background and Course of Proceedings

The Association for Consumer Information (VKI) had asserted the invalidity of certain price adjustment clauses in a class-action lawsuit. After the case had gone through the lower courts, the Supreme Court has now upheld the decisions of the lower courts.

Key points of the decision

The courts upheld fwp’s legal position and ruled that the disputed clauses are valid. The adjustment mechanisms are consistent with consumer protection provisions.

• A price adjustment clause based on average cost factors is not grossly disadvantageous if it eliminates fluctuations and spreads risks.
• Taking an average of the energy, personnel, maintenance, and administrative costs of multiple networks when calculating the working price, and applying a weighted, cost-neutral index adjustment to such a uniform tariff that reflects changes in costs, is objectively justified if this index adjustment follows Austrian energy indices and Austrian consumer price indices.
• Section 6(2)(4) of the Austrian Consumer Protection Act (KSchG) does not apply to long-term energy supply contracts, as these are not designed to provide their full service within two months of the contract’s conclusion.
• Furthermore, the clauses are sufficiently specific and formulated in a comprehensible manner for customers. The conditions under which price changes occur were classified in the proceedings as clearly identifiable, transparent, and not surprising.

Expertise in Energy Law and Class Action Lawsuits

The fwp team, led by Partner Mag. Monika Sturm, was able to convince the court with its well-reasoned arguments. This success underscores the firm’s long-standing experience in representing infrastructure companies in strategically significant class-action lawsuits. This ruling now provides important guidance for the entire Austrian energy industry, particularly with regard to the drafting of future supply contracts in a volatile market environment.