The Court of Justice of the European Union issued a ruling on Thursday that national energy regulators have the authority to require electricity suppliers to refund money to customers who do not meet consumer protection standards. The decision clarifies that safeguarding consumer rights is among the responsibilities of these regulators, similar to how the National Markets and Competition Commission is tasked in Spain.
Accordingly, Member States may empower these authorities to compel operators to reimburse amounts charged in ways that violate consumer protection rules, with particular emphasis on transparency and accurate billing practices. The ruling makes clear that the focus is not on defending the precise justification for a refund, but on ensuring that regulatory bodies uphold consumer protection and transparency obligations in all tariff and billing activities.
Historically, the matter traces back to a 2019 case in which the national regulator overseeing energy, grids, and environmental matters fined Green Network, a provider of electricity and gas distribution in Italy, 655,000 euros for failing to meet tariff transparency obligations. The company subsequently returned about 14 million euros to its customers, money charged for administrative costs that the regulator deemed unlawful under the tariff rules in force at the time.
Green Network pursued its appeal through administrative channels, ultimately challenging the decision before higher state authorities. The case reached the Court of Justice after a request from Italy’s highest administrative court, which argued for a broader acknowledgment of consumer protection powers at the national level. The Court of Justice affirmed the capacity of national authorities to act in defense of consumers, reinforcing the idea that protecting households from opaque or misleading billing practices is a legitimate and essential function of regulatory bodies across the union. This outcome reinforces a unified standard for how energy markets should treat customers and how regulators can enforce those standards when a supplier does not comply. The decision underscores that consumer protection duties are embedded in the remit of national regulators and that refunds can be a remedy when violations are established. The ruling also signals a broader commitment to transparency and accountability in energy pricing, which benefits households, small businesses, and other energy users across member states. The court’s conclusions are cited as a reference for future regulatory actions and for evaluating whether tariff structures and billing statements meet the high expectations set for consumer rights. In practical terms, regulators gain a clear tool to address unjust charges and to ensure that any discrepancies in billing are corrected promptly, with restitution to affected customers where appropriate. The judgment therefore aligns the duties of energy regulators with a consistent standard of consumer protection, supporting fair competition and clear disclosure in energy markets across the European Union. Attribution: Court of Justice of the European Union ruling on consumer protection in energy tariffs