Contract with Natural Gas supplier

dRNk SAnTA

Hi all,

I am scratching my head and would value any input...

We have 2 months left on the 12 month contract with our natural gas supplier. This month I received a notification from the company that a price increase has come into effect and would appear on all future bills.

My previous experience is that when the price of the product changes mid-contract, the customer has an option to accept the increase or exit the contract.

The letter from the gas company said nothing about my option to accept or exit, so I emailed them last week.

My email said that I note the change in price and wish to exercise my option to exit the contract without penalty (the gas company usually charges €50 exit penalty if you leave during 12 month contract period).

The response from Customer Service:

Thank you for your email, Unfortunately if you leave before the contract end date you would be liable for a €50 termination fee.


Prices are not fixed with Flogas, you are guaranteed the percentage discount you sign up for off the standard tariff duing the 12month contract.

Prices can vary depending on the price in the market. Even though your price increased on the 1st of August you are still in receipt of 27% discount off the standard tariff.

Flogas has announced a second increase through the media on the 28th of September which will be 9.8% from the 1st of November this affects all tariffs. You will still receive 27% off the standard tariff but we cannot set the rate and standing charge for the year unfortunately.

In short - they can increase the price as many times as they like and I am only entitled to a fixed % discount from their headline charge. I am not entitled to leave the contract without paying a €50 breakage fee.

This seems unfair & open to abuse. Does our consumer law allow this type of contract to exist?

L1011

Energy supply contracts other than specific fixed-price ones have this as standard.

As gas and electricity are variable price products which it is expensive or impossible to secure long-term pricing on, they really need the ability to do it without going out of business.