Mag. Hedvika Hartmanová answers questions from our readers regarding the termination of combined energy supply contracts following the death of a family member.
The period after the death of a close relative is very difficult for anyone affected and is often associated with adapting to a new reality. Nevertheless, surviving relatives should bear in mind that various obligations also arise during this time, closely linked to the administration and settlement of the deceased’s affairs. These include, among other things, the obligation to terminate the combined energy supply contract—that is, gas and electricity. But how should one proceed?
First of all, it should be noted that the death of a relative does not automatically result in the termination of a combined energy supply contract (gas and electricity). Civil law provides that a debtor’s obligations generally do not cease upon death unless the contract concerns a performance that had to be carried out personally by the debtor. Payments for energy supply do not fall into this category.
In light of this, the relatives of the deceased are required to terminate the relevant contract with the respective energy supplier. In principle, termination can be carried out in two ways. Either the point of consumption is transferred from the deceased person to a relative, so that the energy supply at that location or in the property continues. Alternatively, if the energy supply is no longer needed at that location and is not required by anyone, the contract can be fully terminated.
How to Terminate a Contract
In both cases, you must complete the appropriate form with the energy supplier, depending on whether you wish to terminate the contract or transfer it to another person. However, energy suppliers usually require proof of death in order to process either a transfer or a full termination, typically in the form of a copy of the death certificate. In exceptional cases, they may also accept a court decision declaring the death. An affidavit from a relative is often also required. It is important to note that termination or transfer of the contract does not need to wait until the beginning or completion of probate proceedings, which in some cases may take months or even years. Any outstanding payments or credits will subsequently be settled between the energy supplier and the heirs. Alternatively, an heir may pay any outstanding amount and register this claim in the probate proceedings as a debt of the deceased.
What Could Happen?
If the surviving relatives neither terminate the contract nor transfer it to another person, various problems may arise. If the relatives continue to consume energy under a contract concluded in the name of the deceased, this is not automatically considered unlawful consumption under energy law (i.e. consumption without a valid contract). However, for the purposes of this article, it should be assumed that invoices or reminders for unpaid instalments would continue to be issued in the name and to the address of the deceased, as the energy supplier has not been informed of the death.
Sooner or later, however, the consumption point may be forcibly disconnected from the distribution network due to non-payment. Reconnection is generally subject to a fee charged by all energy suppliers, the amount of which varies depending on the provider. In such cases, the surviving relatives would also be obliged to settle the outstanding debts for the deceased’s energy consumption.
A False Assumption
If relatives attempt to take advantage of the death of a family member by continuing to consume energy under the deceased’s contract without paying, assuming that the supplier will only claim the debt from the deceased, they are entirely mistaken. It is important to emphasise that the surviving relatives are also liable for such debts. Once the energy supplier becomes aware of the customer’s death, it will examine how the probate proceedings were handled and will rightfully assert any debts incurred at the consumption point against the heirs. The relatives or heirs are liable for debts arising from energy consumption up to the time of death due to transitional obligations, and also thereafter, as the rights and obligations under the combined energy supply contract pass to the heirs. In simple terms, the heirs step into the contractual position of the deceased and replace them.
Recommended Approach
To summarise, we recommend that readers take all necessary steps immediately after the death of a relative to terminate combined energy supply contracts. This can prevent disconnection from the distribution network due to non-payment and avoid unnecessary reconnection fees. In this way, heirs will not later be required to settle debts for energy consumption in a property they did not use or that may have been occupied by third parties.
Practical Advice
Be Careful with Electricity Supply
If the consumption point (i.e. the house or apartment) is disconnected from the electricity grid for an extended period, the network operator—especially in older properties—may require an inspection of the electrical installations and a report from a certified technician before reconnection. This involves additional costs and, in some cases, may even require renovation of the electrical system. For this reason, it is advisable to avoid disconnection of the electricity supply whenever possible.