No more automatic renewal of dormant contracts !

On Thursday 27 May 2021, the Chamber approved the bill to ban automatic renewal of dormant energy contracts from 2022. As a result of this decision, affected households will be able to save up to €1,000 a year on their gas and electricity bills. But what actually is a dormant contract and what does federal energy regulator CREG say about them?

What is a dormant energy contract?

A dormant contract is a gas or electricity contract that no longer exists on the current market. As a result, the customer who originally took out the contract is given a new, usually more expensive, contract by their energy supplier. This is what is meant by automatic renewal. Essentially, the customer will continue to pay their original contract price, in other words a price which is not updated in line with current market rates and is therefore more expensive.

At present, more than 500,000 Belgian households are victims of this system and are therefore paying high prices. This loophole not only impacts their budget but also complicates their ability to compare their contract with the current rates introduced by the various energy suppliers. In fact, since the gas or electricity contract in question is old, it is not easy for the customer to find the corresponding rate card. Consumers are once again being disadvantaged by this practice, particularly if they are not necessarily keeping an eye out for the latest tempting offers in the field.