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26 March 2025

Vattenfall Found Guilty Of Unfair Price Increases

Court ruling opens doors for mass claims affecting millions of consumers

In a landmark ruling, the Amsterdam court of appeal has found energy supplier Vattenfall guilty of illegally raising tariffs on variable energy contracts, a decision that could potentially affect millions of consumers across the Netherlands. The court's verdict, delivered on March 25, 2025, concluded that Vattenfall's actions constituted "unfair trading practices" as the company raised prices more frequently than allowed under the terms of its contracts.

The court's ruling stems from a complaint by a customer who argued that Vattenfall had changed energy rates more than the permitted twice a year, specifically increasing prices in April 2022, a move justified by the company due to skyrocketing costs following the Russian invasion of Ukraine. According to Vattenfall, the energy market is sensitive to fluctuations, and variable contracts allow for price adjustments based on market developments. However, the court disagreed, stating that the conditions of the contract were misleading.

"The conditions for the contract were found to be misleading, which constitutes incorrect information," the court stated in its ruling. This decision paves the way for a mass claim against Vattenfall and potentially other energy suppliers who may have engaged in similar practices. The Stichting Eerlijke Handelspraktijken, an organization specializing in mass claims, has announced plans to prepare a collective lawsuit, asserting that millions of consumers could be entitled to compensation.

Roelof de Nekker, a lawyer from Friesland, has also launched a mass claim regarding unfair variable energy contracts. He estimates that consumers affected by these practices may have overpaid between 500 and 6,000 euros each, with total damages potentially reaching between 15 and 25 billion euros. "Consumers have been misled. The damage is enormous," De Nekker stated.

Vattenfall, which operates under the brand Nuon, has expressed its disagreement with the court's ruling. A spokesperson for the company said, "We fundamentally disagree with the verdict. We will study the ruling closely and prepare for our next steps." The spokesperson argued that the terms clearly state the conditions under which rates can change, emphasizing that variable rates can fluctuate based on market conditions. They also pointed out that customers are informed of their rights to switch suppliers with 30 days' notice.

The ruling is particularly significant given that approximately 4.5 million Dutch households had variable energy contracts at the start of 2022. The court's decision not only affects Vattenfall's customers but could also extend to other energy suppliers who have similarly raised prices outside the stipulated contract terms.

Legal experts suggest that the outcome of this case could set a precedent for consumer rights in the energy sector, particularly concerning how companies communicate pricing structures. "Both the court and the appeal court have ruled that this clause in the general terms of Energie-Nederland, which many energy suppliers use, is in violation of European consumer law," De Nekker added.

In light of the court's ruling, other claim organizations such as GoBaxter and Claimer.nl are also preparing to join the mass claim efforts. GoBaxter had previously announced its intention to pursue a collective lawsuit against Vattenfall and other energy suppliers over similar tariff increases. The organization has set up a platform for consumers who believe they have been wronged to register their claims.

The average compensation sought per customer is estimated at around 400 euros, which could amount to billions in total claims against Vattenfall and possibly other suppliers. The legal landscape surrounding this issue is evolving, and the outcome of these mass claims could have lasting implications for the energy market in the Netherlands.

As the situation develops, Vattenfall's next steps remain uncertain. The company has yet to confirm whether it will appeal the ruling to the Supreme Court, a move that many legal analysts believe is likely. In the meantime, consumers are encouraged to stay informed about their rights and the ongoing developments in this case.

The court's decision has sparked a broader conversation about transparency and fairness in the energy sector, particularly in light of the recent energy crisis that has affected households across Europe. With rising energy costs becoming a significant concern for many, the implications of this ruling could resonate well beyond Vattenfall, impacting how energy companies operate and communicate with their customers in the future.

In conclusion, the Amsterdam court's ruling against Vattenfall marks a pivotal moment in the ongoing battle for consumer rights in the energy sector. As claims for compensation begin to unfold, millions of consumers may soon find themselves at the center of a significant legal and financial reckoning.