A consumer energy contract is the supply agreement between a licensed supplier and a small consumer. This group enjoys a protective regime of its own, because energy is a basic necessity and the customer is rarely in a position to negotiate on equal terms.
Legal basis
The Energy Act, in force since 1 January 2026, contains the protection of small consumers and implements Directive (EU) 2019/944. Suppliers must hold a licence and offer a model contract with standardised terms, so that offers can be compared. Pre-contractual information must make clear what is fixed and what is variable, which tariffs apply and what the consequences of early termination are. The general consumer rules of Books 6 and 7 of the Civil Code apply alongside, including the cooling-off period for distance contracts and the rules on unfair terms. Disconnection is subject to strict conditions and is in principle not permitted during the winter period.
How it works in practice
Under a fixed-term contract the supplier may charge a fee if the customer switches early; that fee must be clear in advance and proportionate to the loss. Under variable contracts, tariff changes must be announced in good time, with the option to terminate free of charge. If a supplier becomes insolvent, the regulator ensures that customers are transferred to another supplier so that supply continues.
Where it goes wrong
Customers sign a fixed contract without knowing the termination fee and face a penalty when the market falls. A second problem is unclear offers in which discounts and standing charges are mixed together. Third, on moving house termination is not carried out correctly, so that two contracts run alongside each other.
Related terms
The contract connects to the supply licence, the net metering scheme and supervision by the Authority for Consumers and Markets.
In dispute with your supplier? Our energy law specialists assess the contract and the terms.
