Galp now charging for late bill payments

Galp Energia seems determined to continue its decline in the corporate popularity ratings. Not content with its determination to start drilling for oil of the pristine Alentejo coastline, the energy company has started charging €2 for every late payment made by its domestic customers.

Galp is a supplier in the so-called ‘deregulated’ gas and electricity market and unilaterally has decided that €2 per late bill is a good way to increase its profits.

This money-grabbing technique already is used by the largely despised telecommunications sector so Galp can point to those companies as having started the practice.

Galp's spokesman told news agency Lusa today that "the €2 is a minimum compensation amount to be charged in the event of late payment, in order to cover administrative processing costs caused."

"The customer falls into arrears after the expiration of the contractually fixed period of 21 days for payment of invoices," the company sniffed.

Galp customers, who foolishly signed up with the company on or after September 5th, 2018, at least have this late fee include in their contract – in fact they can not have a supply unless they agree to this condition - while customers with older contracts, "were previously (unilaterally) informed of this change," which came into effect on October 1st.

According to ERSE, "there are few suppliers who foresee this type of clause," but the regulator did not hazard a guess as to the number.

"The charge of a penalty by market traders in the event of default will be in accordance with the general law, if this is provided for in the contract," says the regulator, which means that this practice is beyond its power to intervene.

"A new clause or a change in the contract must be communicated in advance and be accompanied by the information on the right of the consumer not to accept the change and to terminate the contract, " says ERSE.

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