Poland Fines Nasz Prąd $5.49 Million Over Unfair Renewable Energy Contracts

Key Takeaways

• $5.49 Million Fine: Poland's UOKiK fined Nasz Prąd approximately $5.49 million (PLN 21.475 million) after finding 21 unfair contractual provisions in its renewable energy installation agreements.
• Unilateral Contract Changes: The company reserved the right to alter heat pump specifications and prices after contracts were signed without guaranteeing consumers the right to withdraw.
• Excessive Financial Penalties: Customers faced daily penalties of approximately $256 (PLN 1,000) for delays in preparing properties, while other provisions allowed the company to remove installed heating equipment over outstanding payments.
• Unfair Allocation of Risk: UOKiK found that Nasz Prąd improperly transferred responsibility for technical assessments, installation risks and potential property damage to consumers.

Deep Dive

Poland's consumer protection authority has fined renewable energy installer Nasz Prąd approximately $5.49 million (PLN 21.475 million) after finding 21 unfair provisions in contracts that allowed the company to change equipment specifications, impose substantial penalties on homeowners and remove heating systems over unpaid balances.

The Office of Competition and Consumer Protection (UOKiK) announced the decision on October 9, following an examination of contracts used by the company, which installs heat pumps, pellet boilers and photovoltaic systems and carries out building insulation and other thermal modernization work.

Among the provisions challenged by the regulator was one allowing Nasz Prąd to change the capacity of a heat pump after the customer had signed a contract. The company could conduct a subsequent technical assessment and alter both the equipment specifications and the price without guaranteeing the customer the right to withdraw from the agreement.

UOKiK found that the provision left consumers uncertain about what they would receive and how much they would ultimately pay. The authority said the company should have assessed the technical requirements of the property and selected appropriate equipment before concluding the contract. If changes subsequently became necessary, customers should have been free to accept the revised terms or terminate the agreement without penalty.

Other provisions exposed customers to daily charges of approximately $256 (PLN 1,000) if their properties were not ready for thermal modernization work and the problem remained unresolved after two hours.

The contracts contained no equivalent penalty for the company's failure to meet its obligations. Customers were also not adequately informed beforehand about the condition their properties needed to be in for work to proceed, leaving Nasz Prąd considerable discretion to determine whether they had failed to meet the requirements.

UOKiK warned that the accumulated penalties could exceed the value of the investment. The regulator also challenged provisions allowing Nasz Prąd to remove installed heating equipment if a customer failed to pay the outstanding balance within 14 days of signing the acceptance report.

Under those terms, the company could charge the customer for installation and removal costs, components that could not be reused and the difference in value between new and used equipment. It also excluded its liability for damage caused during removal. The authority considered these consequences excessive, particularly because Nasz Prąd required customers to pay as much as 90% of the purchase price before installation began.

A customer could therefore lose equipment for which most of the price had already been paid while facing additional charges that could exceed the original investment. Removing the equipment also carried the risk of damage to the property.

Another provision required customers purchasing photovoltaic installations to confirm that their roofs were capable of supporting the equipment's weight. UOKiK found that this improperly transferred responsibility for structural safety to homeowners, including the risk of damage or collapse under the weight of the panels.

UOKiK President Tomasz Chróstny said the findings were particularly concerning for older consumers, who may undertake expensive home improvements involving financial commitments lasting many years.

Chróstny warned that irregularities in the renewable energy market could impose serious financial burdens on households and emphasized the importance of consumers understanding the equipment they were purchasing, its cost and the terms of the agreement.

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