Energy Company Illwerke VKW Settles Legal Dispute Over Electricity Prices

The Vorarlberg energy supplier illwerke vkw has compared itself with those customers who had filed a lawsuit as a result of the price increase on April 1st. The company made the announcement on Wednesday. The customers concerned would have the opportunity to switch to the new, cheaper product on July 1st. A lump sum of 100 euros will be paid for the expenses incurred in connection with the lawsuits.

The state-owned illwerke vkw group more than doubled the electricity price for household customers as of April 1 from 10 to 24 cents per kilowatt hour. At the same time, the state government introduced an electricity rebate which – together with the federal electricity price brake – will keep the electricity price more or less constant even after April 1st. Nevertheless, the price increase caused some customers to flush their faces in view of the falling prices on the electricity price exchanges.

Dornbirner lawyer sought class action

The Dornbirn lawyer Clemens Pichler sought a class action lawsuit, according to him hundreds of customers were ready to do so, it was said at the end of April. According to Pichler, around 50 people had already filed a lawsuit at the time. In order to avert the lawsuits, the energy supplier illwerke vkw wanted to withdraw the electricity price increase for the complaining customers – while terminating the contracts at the same time. Thus, in the eyes of the energy company, the legal basis would have been omitted. “Illwerke vkw is withdrawing the notice given by a customer who was represented by lawyer Clemens Pichler,” said the energy supplier on Wednesday.

As of July 1, illwerke vkw AG will lower the electricity price to 18.7 cents per kilowatt hour. This price is guaranteed until March 31, 2025 – however, for reasons of legal certainty, as it was said, customers must actively decide to switch to the still nameless product, i.e. conclude a new contract.