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16.07.2010

Judgement confirms SWG's fair gas price increases

After several customers of Stadtwerke Gießen cut their gas bills in recent years and questioned the appropriateness of SWG's gas prices, the Giessen District Court fully supported SWG's view in a first case at the beginning of July. On the one hand, the court confirmed SWG's fundamental right to increase prices for customers supplied with natural gas under the "Heating 2" tariff. In addition, the court was convinced that the two price increases by SWG in January and October 2005 were reasonable and appropriate. The court also found that SWG had not even passed on the full extent of its own increased procurement costs to gas customers during this period. SWG had also always announced the impending price increase in a timely and proper manner. The court therefore ruled in favour of SWG on all points. In the current case, the customer must now pay the outstanding part of his gas bill. The court did not allow an appeal.

The opposing party had previously invoked Section 315 of the German Civil Code in the proceedings and asked SWG to demonstrate the fairness and appropriateness of the gas price increases. This proof was provided beyond doubt.

The head of the legal department at Stadtwerke Gießen, Martina Gießler, sees the judgement as a positive signal for the other pending lawsuits on gas price cuts: "The decision of the Giessen district court is in line with the judgements already handed down by the Federal Court of Justice on the issue of gas price adjustments. The court carefully scrutinised the case and ultimately confirmed the right to adjust prices and the SWG gas price." The supreme court rulings were fully taken into account in this case. "No one can now seriously doubt the appropriateness of the price adjustments made in 2005," says Martina Gießler.