Fit for the consumer? Do's and Don'ts of flexible electricity contracts

Flexible electricity offers are expected to become a reality for many consumers in the coming years. BEUC is working to ensure that consumers who wish to take up such flexible offers can easily do so, while being sufficiently protected.

In this report, we carried out an analysis of dynamic tariffs and aggregation offers provided by six companies in five countries. These companies can be considered the frontrunners in flexible electricity offers. We paid particular attention to clauses related to price calculation (tariffs and rewards), data protection and contract termination/switching.

Our analysis highlighted some good practices. However, it also revealed a number of worrying clauses currently on the market and that should be eliminated from these new energy contracts. To further inspire companies in the preparation of consumer-friendly contracts, our analysis includes several recommendations and model provisions. It also includes recommendations for authorities to ensure these offers deliver to consumers.

Our analysis showed:
1. Several companies have good, although sometimes complex, information available on their pricing policies. Others make very
unclear references to the market price and fail to specify what it is.
2. None of the contracts had data protection policies that would be acceptable from a consumer perspective. Companies should
make much more effort to be fully GDPR-compliant.
3. We observed some rather old-fashioned contract terms and conditions – including clauses that could lock consumers in and
which included unclear information and disproportionate termination fees.

Following our analysis, we contacted all companies and provided them with an opportunity to comment. Several engaged with us in a constructive way and acknowledged shortcomings in their offers. A few promised to change several clauses we found problematic, illustration why this analysis is not only timely but that it is important for the development of flexible electricity offers.