A tacit renewal of an energy contract can be unexpected and frustrating for consumers. Yet, it happens frequently. But what does the law say about this? What are your rights, obligations, risks, and opportunities with such a renewal? This article explains it clearly.
What is a tacit renewal?
A tacit renewal means that a contract is automatically renewed after expiration, without the consumer's explicit consent. This can be both advantageous and disadvantageous. For example, you could unknowingly remain stuck with an unfavorable contract.
Legal rules regarding tacit renewal
The law offers protection against unfair contract extensions. According to the rules, an automatically renewed energy contract must be converted into an indefinite-term contract. This gives consumers the freedom to cancel the contract at any time with a notice period of up to 30 days.
Information obligation of the energy supplier
Energy suppliers are required to inform their customers promptly and clearly about an upcoming renewal. This must be done at least one month before the current contract expires. Failure to do so may result in the renewal being unlawful.
What to do in case of an incorrect extension?
If you suspect that the tacit renewal does not comply with the rules, you can take action:
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Please check the terms and conditions of your contract.
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Contact your energy supplier to discuss the situation.
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Exercise your right to terminate the contract without penalty if the extension proves to be unlawful.
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If the supplier refuses to cooperate, seek legal assistance . This can be done, for example, through a legal aid center or a consumer organization such as ConsuWijzer.
Opportunities and risks
A silent renewal offers you the chance to stay in an energy contract without much hassle. However, this can also entail risks, such as:
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Loss of flexibility : You may remain tied to a contract for longer than desired.
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Higher rates : Silent renewals often come with less favorable terms.
By closely monitoring your contract terms and your supplier's communications, you can avoid many of these risks.
Conclusion
A tacit renewal of an energy contract can be justified, provided the supplier complies with its legal obligations. As a consumer, you have rights that protect you from unreasonable contract terms. Be attentive to your energy supplier's communications and know that you can always cancel an open-ended contract.
Are you dealing with a tacit renewal and unsure of its legality? Feel free to contact a legal advisor or consult a legal aid clinic for assistance.
