Eesti Energia will change terms and conditions for fixed-term contracts

23.10.2012

In light of the justice ministry and consumer protection department interpretations of the law of obligations act, Eesti Energia will change the terms and conditions for residential customer contracts and will implement new price setting principles after the coming Monday.

Margus Rink, Member of the Management Board at Eesti Energia emphasised that Eesti Energia aims to offer clear and understandable product solutions for its customers. "Although the current law of obligations act can be interpreted in several ways, we will exclude the section from residential customer contracts that deals with the early termination fee for fixed-term contracts to avoid future misunderstandings," he added. Residential customers can therefore terminate fixed-term contracts with one month notice. This change also means that from now on the risk of the early termination of fixed-term contracts will affect the price of a kilowatt-hour.

Eesti Energia will implement the changes in the information systems within this week and new standard contracts and prices will take effect on Monday, 29 October. "Customers, who have already signed a contract with us, do not have to worry as the price in their contracts will remain the same, but they do not have to pay a fee if they terminate their contract early. Customers, who want to sign a contract with us this week, also do not have to postpone their decision. Although the mentioned section will remain in the terms and condition until the end of this week, the customers do not have to pay a fine upon terminating the contract," confirmed Rink.

It is important to understand that this does not affect contracts for legal entities, including apartment associations, who wish to sign their electricity contract in the association's name. Early termination fees will remain in the fixed-term contracts for customers who are legal entities and there will be no changes in their current contracts or price settings.

Eesti Energia will make a proposal to the electricity market round table at the Ministry of Economic Affairs and Communications to supplement the current law of obligations act. "The electricity market is a completely new market and certain particularities apply. If we want to guarantee the best terms and conditions for all market participants (i.e. sellers and customers), then the current law of obligation act should be reviewed. By doing so, customers will receive a cheaper price and more transparent contract terms and conditions," stressed Rink.

More about why a fee is charged for terminating a contract early »

Eliis Vennik
Eesti Energia
Pressiesindaja
715 12 18
57 830 756
eliis.vennik@energia.ee